Erebor Bank, launched earlier this year by Palmer Luckey, initially offered to convert customers' stablecoins to cash for free as a way to attract new crypto customers. The bank pulled the offer after several months when sophisticated crypto trading firms found a way to profit from it at Erebor's expense. The episode illustrates that the young bank is still working out how to manage the risks of serving the cryptocurrency industry, which involves fast-moving financial flows and unusual business models.
Related Articles
Don't miss out on breaking stories and in-depth articles.