Home CryptocurrencyAltcoin Genesis files for bankruptcy, FTX explores reboot and Bitzlato…

Genesis files for bankruptcy, FTX explores reboot and Bitzlato…

by SuperiorInvest

Top news this week

Crypto lender Genesis files for Chapter 11 bankruptcy

FTX contagion continues to spread through the crypto industry, with Genesis Capital filing for bankruptcy protection in New York with liabilities estimated at $1 billion to $10 billion and assets to match. The company plans a “two-track process” that will follow a “sale, capital increase and/or equity transaction” and allow the business to “emerge under new ownership.” According to the company, Genesis derivatives, spot trading, broker-dealer and custody trades are not included in the proceedings. In an effort to maintain liquidityParent company Genesis Digital Currency Group has suspended dividend withdrawals.

Bitzlato and its founder face enforcement action from US authorities

The United States authorities accepted enforcement action against crypto firm Bitzlato, seizing the company’s website and labeling the business a “primary money laundering enterprise” linked to Russian illicit financing. As part of the case, FBI officials arrested Russian citizen Anatoly Legkodymov in Miami. The criminal complaint alleges that the firm was a “critical source of funds” for the Darknet Hydra marketplace, allowing users to launder funds, including those from ransomware attacks.

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FTX CEO says he’s looking into restarting the exchange

New FTX CEO John Ray, appointed before the bankruptcy proceedings, created a task force to consider relaunching FTX.com. In the interview, he noted that everything is “on the table” regarding the future of FTX.com, including a potential path forward in terms of restarting the exchange. In another case headline, former FTX CEO Sam Bankman-Fried was accused of using his influence in the crypto industry to inflate the prices of some coins through a coordinated strategy with Alameda Research. Bankruptcy proceedings face challenges, as the liquidators of Alameda suffered losing at least $11.5 million since taking control of his trading accounts.

Iran and Russia want to issue a new gold-backed stablecoin

The Central Bank of Iran is said to be cooperating with the Russian government to jointly issue a new gold-backed stablecoin. The “Gulf Region Token” would serve as a payment method in foreign trade instead of fiat currencies such as the US dollar, Russian ruble or Iranian rial. The new cryptocurrency would operate in a special economic zone in Astrakhan, where Russia receives Iranian cargo shipments.

3AC, Coinflex Founders Collaborate To Raise $25M For New Debt Exchange Trading

Co-founders of a collapsed crypto hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, are looking to raise money for a new cryptocurrency exchange in partnership with Coinflex co-founders Mark Lamb and Sudhu Arumugam. According to the pitch deck, they want to raise $25 million. The new exchange will be called GTX and will focus on claims against bankrupt companies, allowing customers to use the claims as collateral for trading. The initiative drew criticism from the crypto community.

Winners and losers

At the end of the week Bitcoin (BTC) is in $21,856Ether (ETH) on $1,621 and XRP on $0.40. The total market capitalization is at $1.00 trillion, according to on CoinMarketCap.

Among the top 100 cryptocurrencies are Frax Share’s top three altcoin gainers of the week (FXS) at 67.88%, Hedera (HBAR) at 45.32% and Convex Finance (CVX) to 44.01%.

The three biggest altcoin losers of the week are Gala (gala) at -8.20%, Huobi Token (HT) at -6.34% and Trust Wallet Token (TWT) to -3.47%.

For more information on cryptocurrency prices, be sure to read on Cointelegraph Market Analysis.

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Are you still independent? Financial sovereignty and decentralized exchange

Most memorable quote

“Crypto is still very interesting because we’re finally starting to see the bear of regulation come into play and I think that’s a good thing in the long run.”

Kevin O’Learyventure capital investor

“Actually, I thought he was [Sam Bankman-Fried] was the Mark Zuckerberg of cryptocurrency. I didn’t realize it was Bernie Madoff. And that’s something I have to own. And so I own it.”

Anthony Scaramuccico-founder of SkyBridge Capital

“I’d like to see the CFTC and other regulators provide more guidance this year, and I’m very hopeful that maybe we’ll see more clarity in the United States.”

Caroline PhamCommissioner of the Commodity Futures Trading Commission (CFTC)

“Bitcoin just became the 24/7 VIX. It’s now just a trading tool for big funds that want to get in and out of risk on weekends and overnight.”

Jeff Dormanchief investment officer of Arca

“A huge undertaking [central bank] digital currencies are not worth the cost and risk.”

Tony Yatesformer senior adviser to the Bank of England

“I don’t think DeFi should attack TradFi. DeFi is supposed to complement TradFi, at least initially.”

Emin Gun Sirerco-founder and CEO of Ava Labs

Forecast of the week

Bitcoin Tracks $21.4K Zone As Analyst Predicts BTC Price To Chase Gold

Bitcoin rose to new multi-month highswith the BTC/USD pair retaining support at $21,000, according to data from Cointelegraph Markets Pro and TradingView.

Prices moving through support or resistance affect sentiment, but the trading range is well defined, according to an analytical source in the Material Indicators chain. “Lack of liquidity in BTC below $18,000 and above $23,000 currently I see as lack of sentiment for these levels,” the firm wrote on Twitter.

FUD of the week

Silvergate reports a net loss of $1 billion in the fourth quarter of 2022

Silvergate Bank announced $1 billion net loss attributable to common stockholders in the fourth quarter of 2022. The digital asset bank experienced significant deposit outflows in the final quarter of 2022 primarily due to its relationship with FTX and Alameda Research. Silvergate faces a class action lawsuit regarding their dealings with crypto firms. Among the measures taken by the bank to maintain cash liquidity were wholesale financing and the sale of debt securities.

Nexo agrees to $45 million settlement with SEC and states over Earn product

Crypto lender Nexo Capital agreed to pay $45 million in fines to the US Securities and Exchange Commission and the North American Securities Administrators Association for failing to register the offering and sale of its Earn Interest product. Regulators have not cited any fraud or deceptive business practices, according to the company. On January 12th Bulgarian prosecutors began searching Nexo’s Bulgarian offices for alleged involvement in a large-scale money laundering program as well as violations of international sanctions against Russia.

CoinDesk could be up for grabs as parent company DCG raises funds

Potential sale of cryptocurrency CoinDesk’s parent company, Digital Currency Group, is considering a media outlet. Lazard investment bankers are helping the company consider options, including a full or partial sale. DCG has reportedly received several bids in excess of $200 million for the media business over the past few months. DCG’s venture capital portfolio includes 200 cryptocurrency-related deals.

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The Metaverse is not the end game, but an “ongoing digital transformation”: Davos 2023

Leaders in the Web3 space have come together at the World Economic Forum in Davos to discuss the first outputs from the “Defining and Building the Metaverse” initiative.

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Cointelegraph writers and reporters contributed to this article.

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