Diem, the cryptocurrency formerly known as Libra and backed by Facebook parent company Meta, is to be sold off by the social media giant.
The Diem Association, which runs the project from within Facebook, has sold its assets to Silvergate Capital Corporation for $182 million.
Less than three years following its commencement, the project said opposition from federal regulators meant it could not continue in its present form.
“As a result, the best path forward was to sell the Diem Group’s assets, as we have done today to Silvergate,” Diem chief executive Stuart Levey wrote.
The intention was for Diem to operate as a stablecoin tied to real-world assets such as national currencies.
Facebook’s former crypto head and Diem co-creator David Marcus tweeted: “We all gave our whole hearts, blood, sweat and tears to what I will always call Libra. We were mission driven and were in it for the right reasons (that remain as valid today as they were then).
“Here’s to yet another chapter with a maybe more ‘acceptable’ promoter driving the vision forward. There will be ample time in the future for me to properly reflect on the behavior of certain politicians and regulators along the way, but for now… onward!”
Levey continued: “One of our highest priorities in designing the Diem Payment Network was building in controls to protect it against misuse by illicit actors.
“Among these controls was a prohibition on anonymous transactions, which pose both a sanctions and money-laundering risk.
“We look forward to seeing the design choices – and the ideals – of Diem thrive.”