Genesis files for bankruptcy, FTX explores a reboot, and Bitzlato news: Hodler’s Digest: Jan. 15-21

Top Stories This Week

Crypto lender Genesis files for Chapter 11 bankruptcy

FTX contagions proceed to dispersed done the crypto industry, with Genesis Capital filing for bankruptcy extortion successful New York, estimating liabilities successful the scope of $1 cardinal to $10 billion, and assets astatine the aforesaid level. The institution plans a “dual way process,” which volition prosecute “sale, superior raise, and/or an equitization transaction” and alteration the concern “to look nether caller ownership.” Genesis’ derivatives, spot trading, broker-dealer and custody businesses are not included successful the proceedings, according to the company. In an effort to support liquidity, Genesis genitor institution Digital Currency Group suspended dividend withdrawals.

Bitzlato and its laminitis look enforcement actions from US authorities

United States authorities person taken enforcement actions against crypto steadfast Bitzlato, seizing the company’s website and labeling the concern arsenic a “primary wealth laundering concern” connected to Russian illicit finance. As portion of the case, FBI officials arrested Russian nationalist Anatoly Legkodymov successful Miami. The transgression ailment claims the steadfast was a “crucial fiscal resource” for the Hydra darknet marketplace, allowing users to launder funds, including those from ransomware attacks.

FTX CEO says helium is exploring rebooting the exchange

New FTX CEO John Ray, appointed earlier the bankruptcy proceedings, has acceptable up a task unit to see relaunching FTX.com. He noted successful an interrogation that everything is “on the table” erstwhile it comes to the aboriginal of FTX.com, including a imaginable way guardant with respect to rebooting the exchange. In different header successful the case, erstwhile FTX CEO Sam Bankman-Fried has been accused of utilizing his power successful the crypto manufacture to inflate immoderate coins’ prices done a coordinated strategy with Alameda Research. Bankruptcy proceedings are facing challenges, arsenic liquidators of Alameda person suffered astatine slightest $11.5 cardinal successful losses since taking power of its trading accounts..

Iran and Russia privation to contented caller stablecoin backed by gold

The Central Bank of Iran is reportedly cooperating with the Russian authorities to jointly contented a caller stablecoin backed by gold. The “token of the Persian Gulf region” would service arsenic a outgo method successful overseas commercialized alternatively of fiat currencies similar the United States dollar, the Russian ruble oregon the Iranian rial. The caller cryptocurrency would run successful a peculiar economical portion successful Astrakhan, wherever Russia accepts Iranian cargo shipments.

3AC, Coinflex founders collaborating to rise $25M for caller claims trading exchange

Co-founders of collapsed crypto hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, are trying to rise wealth for a caller cryptocurrency speech successful concern with Coinflex co-founders Mark Lamb and Sudhu Arumugam. According to a transportation deck, they are looking to rise $25 million. The caller speech volition beryllium called GTX, and it volition people claims against bankrupt companies, allowing customers to usage claims arsenic collateral for trading. The inaugural drew criticism from the crypto community.

Winners and Losers

At the extremity of the week, Bitcoin (BTC) is astatine $21,856, Ether (ETH) astatine $1,621 and XRP astatine $0.40. The full marketplace headdress is astatine $1.00 trillion, according to CoinMarketCap.

Most Memorable Quotations

“Crypto is getting precise absorbing due to the fact that we’re yet starting to spot the carnivore of regularisation coming into play and I think, agelong term, that’s a bully thing.”

Kevin O’Leary, task superior investor

“I really thought helium [Sam Bankman-Fried] was the Mark Zuckerberg of crypto. I didn’t recognize helium was the Bernie Madoff. And that’s thing I person to own. And truthful I ain it.”

Anthony Scaramucci, co-founder of SkyBridge Capital

“What I’d similar to bash is to spot the CFTC and different regulators supply much guidance this twelvemonth and I’m precise hopeful that possibly we volition spot much clarity successful the United States.”

Caroline Pham, commissioner of the Commodity Futures Trading Commission (CFTC)

“Bitcoin has conscionable go a 24/7 VIX. It’s conscionable a trading conveyance present for ample funds who privation to get successful and retired of hazard connected weekends and overnight trading hours.”

Jeff Dorman, main concern serviceman astatine Arca

“The immense undertaking of [central bank] integer currencies is not worthy the costs and risks.”

Tony Yates, erstwhile elder advisor to the Bank of England

“I don’t deliberation DeFi is meant to onslaught TradFi. DeFi is expected to complement TradFi, astatine slightest initially.”

Emin Gun Sirer, co-founder and CEO of Ava Labs

Prediction of the Week 

Bitcoin eyes $21.4K portion arsenic expert predicts BTC terms volition pursuit gold

Bitcoin roseate toward caller multi-month highs, with the BTC/USD brace preserving enactment astatine $21,000, according to information from Cointelegraph Markets Pro and TradingView.

Prices moving done enactment oregon absorption are affecting sentiment, but the trading scope is good defined, noted on-chain analytics assets Material Indicators. “I presumption the deficiency of BTC liquidity beneath $18k and supra $23k arsenic a deficiency of sentiment for those levels astatine this time,” the steadfast wrote connected Twitter.

FUD of the Week 

Silvergate reports $1B nett nonaccomplishment successful the 4th fourth of 2022

Silvergate Bank has announced a $1 billion nett nonaccomplishment attributable to communal shareholders successful the 4th fourth of 2022. The integer plus slope saw important outflows of deposits successful the past 4th of 2022 chiefly owed to its narration with FTX and Alameda Research. Silvergate faces a class-action lawsuit implicit its dealings with the crypto firms. Among the actions taken by the slope to support currency liquidity was wholesale backing and the merchantability of indebtedness securities.

Nexo agrees to $45M colony with SEC and states implicit Earn product

Crypto lender Nexo Capital has agreed to wage $45 cardinal successful penalties to the U.S. Securities and Exchange Commission and the North American Securities Administrators Association for failing to registry the connection and merchantability of its Earn Interest product. According to the company, the regulators did not allege immoderate fraud oregon misleading concern practices. On Jan. 12, Bulgarian prosecutors began searching Nexo’s Bulgarian offices for alleged engagement successful a large-scale wealth laundering scheme, arsenic good arsenic violations of Russia’s planetary sanctions.

CoinDesk could beryllium up for grabs arsenic genitor institution DCG scrambles for funds

A imaginable merchantability of cryptocurrency media outlet CoinDesk is being considered by genitor institution Digital Currency Group. Investment bankers from Lazard are helping the steadfast measurement options, including a afloat oregon partial sale. DCG has reportedly received aggregate offers exceeding $200 cardinal for the media steadfast implicit the past fewer months. DCG’s task superior portfolio comprises 200 crypto-related businesses.

Best Cointelegraph Features

How to forestall AI from ‘annihilating humanity’ utilizing blockchain – Cointelegraph Magazine

Ben Goertzel has devoted his beingness to processing an artificial wide quality — and outlines however helium plans to massively standard blockchain to power it.

Crypto Mason’s decease threats from maxis: Hall of Flame

Crypto Mason is conscionable 22, but helium already has much than 1 cardinal societal media followers. And wherefore did Lark Davis artifact him?

Metaverse not the endgame, but ‘ongoing integer transformation‘: Davos 2023

Leaders successful the Web3 abstraction came together astatine the World Economic Forum successful Davos to sermon the archetypal outputs from the “Defining and Building the Metaverse” initiative.