Crypto Biz: FTX clawbacks, Genesis silver lining?

Remember erstwhile Sam Bankman-Fried admitted to being a important donor to the Democratic and Republican parties? Well, the recipients of the tainted wealth person been formally requested to instrumentality the funds to FTX’s creditors. So far, we cognize of 3 salient Democratic groups — the DNC, the Democratic Senatorial Campaign Committee and the Democratic Congressional Campaign Committee — that person returned SBF-linked donations successful December 2022. Will the remainder follow? 

As FTX seeks clawbacks, the Digital Currency Group and its bankrupt subsidiary, Genesis Global Trading, person agreed to a restructuring plan. The bully quality is that Genesis relationship holders volition get astir of their wealth backmost if the woody is finalized.

This week’s Crypto Biz revisits acquainted stories surrounding FTX and the Digital Currency Group and breaks down crypto’s nonaccomplishment to triumph nationalist trust.

FTX seeks to claw backmost governmental donations by the extremity of February

The emergence and autumn of Sam Bankman-Fried was shrouded successful utmost contention aft we learned the FTX laminitis was a monolithic donor to the Democratic and Republican parties. Now that the bankrupt FTX is recovering currency and liquid cryptocurrencies, the company’s caller absorption wants to recover each governmental donations from SBF and his cronies. “FTX Debtors are sending confidential messages to governmental figures, governmental enactment funds, and different recipients of contributions oregon different payments that were made by oregon astatine the absorption of the FTX Debtors, Samuel Bankman-Fried oregon different officers oregon principals of the FTX Debtors,” wrote FTX lawyer Andy Dietderich. “These recipients are requested to instrumentality specified funds to the FTX Debtors by February 28, 2023.”

Research suggests that the terms of Bitcoin was much intimately linked to FTX developments than macro events passim the last 4th of 2022. https://t.co/X2NZnbMUsU

DCG offloads Grayscale shares to rise capital: Report

Grayscale products were a blistery commodity during the 2021 bull market. Now, adjacent Grayscale’s proprietor is offloading shares to sphere superior and liquidity amid the carnivore market. Citing United States securities filings, the Financial Times reported connected Feb. 7 that Digital Currency Group (DCG) was selling shares of respective Grayscale products, including the Ether concern trust, perchance to debar a deeper liquidity crunch astatine the holding company. Digital Currency Group confirmed the merchantability but attributed it to “ongoing portfolio rebalancing.” DCG’s fiscal problems are good known astatine this point. Much stems from its subsidiary Genesis, which filed for bankruptcy connected Jan. 19, allegedly owing $3 cardinal to creditors.

Genesis creditors to expect 80% betterment nether projected restructuring plan

Speaking of Genesis, creditors tin expect to get 80% of their wealth backmost — but lone if a recently projected restructuring plan goes smoothly. On Feb. 6, Genesis announced that it reached an “agreement successful principle” with DCG and its creditors, which would yet pave the mode for customers to get backmost astir of their deposits. Under the projected agreement, DCG volition exchange a $1.1 cardinal promissory note owed successful 2023 for convertible preferred banal and refinance existing loans to escaped up $526 million. The Winklevoss twins’ Gemini speech volition besides contribute $100 cardinal to Gemini Earn users whose funds are frozen with Genesis. Even if each goes according to plan, the narration betwixt Gemini and DCG seems irrevocably broken.

What's waiting for Genesis' creditors aft its bankruptcy? https://t.co/NuEqD1CBJN

Crypto advertisement deals for Super Bowl LVII fell isolated aft FTX collapse: Report

Don’t expect a crypto Hail Mary during the Super Bowl this weekend, arsenic the NFL has reportedly scrapped immoderate plans to advertise the manufacture connected crippled day. According to a study from the Associated Press, the league was considering moving 4 crypto-focused commercials during the Super Bowl. Crypto volition present get “zero representation” during the large crippled due to the fact that of each the atrocious property surrounding the industry. It seems similar a cardinal years ago, but Super Bowl LVI successful 2022 featured commercials from FTX, eToro, Crypto.com and Coinbase. Even comedian Larry David got suckered successful to advertise for FTX. He’s present facing a class-action suit for allegedly pumping the crypto exchange without owed diligence.

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