Genesis information for chapter, FTX explores a reboot, and Bitzlato information: Hodler’s Digest: Jan. 15-21

Prime Tales This Week

Crypto lender Genesis information for Chapter 11 chapter

FTX contagions continue to spread through the crypto industry, with Genesis Capital submitting for chapter safety in New York, estimating liabilities within the vary of $1 billion to $10 billion, and belongings on the identical stage. The corporate plans a “twin observe course of,” which can pursue “sale, capital elevate, and/or an equitization transaction” and allow the enterprise “to emerge beneath new possession.” Genesis’ derivatives, spot buying and selling, broker-dealer and custody companies are usually not included within the proceedings, in line with the corporate. In an effort to maintain liquidity, Genesis mum or dad firm Digital Forex Group suspended dividend withdrawals.

Bitzlato and its founder face enforcement actions from US authorities

United States authorities have taken enforcement actions in opposition to crypto agency Bitzlato, seizing the corporate’s web site and labeling the enterprise as a “main cash laundering concern” linked to Russian illicit finance. As a part of the case, FBI officers arrested Russian nationwide Anatoly Legkodymov in Miami. The legal grievance claims the agency was a “essential monetary useful resource” for the Hydra darknet market, permitting customers to launder funds, together with these from ransomware assaults.

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FTX CEO says he’s exploring rebooting the alternate

New FTX CEO John Ray, appointed earlier than the chapter proceedings, has arrange a job power to think about relaunching FTX.com. He famous in an interview that the whole lot is “on the desk” in relation to the way forward for FTX.com, together with a possible path ahead with regard to rebooting the alternate. In another headline in the case, former FTX CEO Sam Bankman-Fried has been accused of utilizing his affect within the crypto trade to inflate some cash’ costs via a coordinated technique with Alameda Analysis. Chapter proceedings are going through challenges, as liquidators of Alameda have suffered a minimum of $11.5 million in losses since taking management of its buying and selling accounts..

Iran and Russia need to subject new stablecoin backed by gold

The Central Bank of Iran is reportedly cooperating with the Russian authorities to collectively subject a brand new stablecoin backed by gold. The “token of the Persian Gulf area” would function a fee technique in overseas commerce as an alternative of fiat currencies like the US greenback, the Russian ruble or the Iranian rial. The brand new cryptocurrency would function in a particular financial zone in Astrakhan, the place Russia accepts Iranian cargo shipments.

3AC, Coinflex founders collaborating to lift $25M for brand spanking new claims buying and selling alternate

Co-founders of collapsed crypto hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, try to lift cash for a brand new cryptocurrency alternate in partnership with Coinflex co-founders Mark Lamb and Sudhu Arumugam. Based on a pitch deck, they need to elevate $25 million. The brand new alternate will probably be known as GTX, and it’ll goal claims in opposition to bankrupt corporations, permitting prospects to make use of claims as collateral for buying and selling. The initiative drew criticism from the crypto neighborhood.

Winners and Losers

On the finish of the week, Bitcoin (BTC) is at $21,856, Ether (ETH) at $1,621 and XRP at $0.40. The full market cap is at $1.00 trillion, according to CoinMarketCap.

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

The highest three altcoin losers of the week are Gala (GALA) at -8.20%, Huobi Token (HT) at -6.34% and Belief Pockets Token (TWT) at -3.47%.

For more information on crypto costs, be certain to learn Cointelegraph’s market analysis.

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Most Memorable Quotations

“Crypto is getting very attention-grabbing as a result of we’re lastly beginning to see the bear of regulation coming into play and I believe, long run, that’s a superb factor.”

Kevin O’Leary, enterprise capital investor

“I really thought he [Sam Bankman-Fried] was the Mark Zuckerberg of crypto. I didn’t understand he was the Bernie Madoff. And that’s one thing I’ve to personal. And so I personal it.”

Anthony Scaramucci, co-founder of SkyBridge Capital

“What I’d love to do is to see the CFTC and different regulators present extra steerage this yr and I’m very hopeful that maybe we are going to see extra readability in the US.”

Caroline Pham, commissioner of the Commodity Futures Buying and selling Fee (CFTC)

“Bitcoin has simply turn into a 24/7 VIX. It’s only a buying and selling automobile now for big funds who need to get out and in of threat on weekends and in a single day buying and selling hours.”

Jeff Dorman, chief funding officer at Arca

“The massive enterprise of [central bank] digital currencies will not be definitely worth the prices and dangers.”

Tony Yates, former senior adviser to the Financial institution of England

“I don’t assume DeFi is supposed to assault TradFi. DeFi is meant to enrich TradFi, a minimum of initially.”

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

Prediction of the Week 

Bitcoin eyes $21.4K zone as analyst predicts BTC worth will chase gold

Bitcoin rose toward new multi-month highs, with the BTC/USD pair preserving help at $21,000, in line with information from Cointelegraph Markets Pro and TradingView.

Costs transferring via help or resistance are affecting sentiment, however the buying and selling vary is effectively outlined, famous on-chain analytics useful resource Materials Indicators. “I view the shortage of BTC liquidity beneath $18k and above $23k as an absence of sentiment for these ranges presently,” the agency wrote on Twitter.

FUD of the Week 

Silvergate studies $1B internet loss within the fourth quarter of 2022

Silvergate Bank has announced a $1 billion internet loss attributable to widespread shareholders within the fourth quarter of 2022. The digital asset financial institution noticed important outflows of deposits within the final quarter of 2022 primarily as a result of its relationship with FTX and Alameda Analysis. Silvergate faces a class-action lawsuit over its dealings with the crypto corporations. Among the many actions taken by the financial institution to keep up money liquidity was wholesale funding and the sale of debt securities.

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

Crypto lender Nexo Capital has agreed to pay $45 million in penalties to the U.S. Securities and Alternate Fee and the North American Securities Directors Affiliation for failing to register the supply and sale of its Earn Curiosity product. Based on the corporate, the regulators didn’t allege any fraud or deceptive enterprise practices. On Jan. 12, Bulgarian prosecutors began searching Nexo’s Bulgarian offices for alleged involvement in a large-scale cash laundering scheme, in addition to violations of Russia’s worldwide sanctions.

CoinDesk may very well be up for grabs as mum or dad firm DCG scrambles for funds

A potential sale of cryptocurrency media outlet CoinDesk is being thought-about by mum or dad firm Digital Forex Group. Funding bankers from Lazard are serving to the agency weigh choices, together with a full or partial sale. DCG has reportedly acquired a number of affords exceeding $200 million for the media agency over the previous few months. DCG’s enterprise capital portfolio includes 200 crypto-related companies.

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Metaverse not the endgame, however ‘ongoing digital transformation‘: Davos 2023

Leaders in the Web3 space came together on the World Financial Discussion board in Davos to debate the primary outputs from the “Defining and Constructing the Metaverse” initiative.

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Cointelegraph Journal writers and reporters contributed to this text.

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