Death knell for Mark Zuckerberg's crypto dreams after regulators block Meta's Diem

A once-ambitious but now faltering Facebook-backed digital currency project known as Diem is dead, its assets sold to bank holding company Silvergate Capital.

Silvergate and the Diem Association announced the sale on Tuesday. Meta, which owns Facebook, did not have a comment.

A Facebook spokesperson, however, pointed to tweets by Stephane Kasriel, head of Meta's cryptocurrency wallet Novi, that said the decision to sell was not made by Meta, but by the Diem Association.

"We hope that the Association’s sale of their assets to @silvergatebank will allow the project’s vision to live on. Because we still believe in the shared financial inclusion mission," Kasriel wrote.

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Diem said it "became clear from our dialogue with federal regulators that the project could not move ahead. As a result, the best path forward was to sell the Diem Group’s assets" and the project will wind down in the coming weeks.


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