Genesis files for bankruptcy, FTX explores a reboot, and Bitzlato…

Top Stories This Week

Crypto lender Genesis files for Chapter 11 chapter

FTX contagions proceed to unfold by way of the crypto business, 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 degree. The firm plans a “dual track process,” which can pursue “sale, capital raise, and/or an equitization transaction” and allow the enterprise “to emerge under new ownership.” Genesis’ derivatives, spot buying and selling, broker-dealer and custody companies usually are not included within the proceedings, in line with the corporate. In an effort to take care of liquidity, Genesis guardian firm Digital Currency 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 “primary money laundering concern” linked to Russian illicit finance. As a part of the case, FBI officers arrested Russian nationwide Anatoly Legkodymov in Miami. The felony grievance claims the agency was a “crucial financial resource” for the Hydra darknet market, permitting customers to launder funds, together with these from ransomware assaults.

FTX CEO says he’s exploring rebooting the trade

New FTX CEO John Ray, appointed earlier than the chapter proceedings, has arrange a activity power to contemplate relaunching FTX.com. He famous in an interview that every part is “on the table” on the subject of the way forward for FTX.com, together with a potential path ahead with regard to rebooting the trade. In one other headline within the case, former FTX CEO Sam Bankman-Fried has been accused of utilizing his affect within the crypto business to inflate some cash’ costs by way of a coordinated technique with Alameda Research. Bankruptcy proceedings are dealing with challenges, as liquidators of Alameda have suffered at the least $11.5 million in losses since taking management of its buying and selling accounts..

Iran and Russia wish to situation new stablecoin backed by gold

The Central Bank of Iran is reportedly cooperating with the Russian authorities to collectively situation a new stablecoin backed by gold. The “token of the Persian Gulf region” would function a cost technique in international commerce as an alternative of fiat currencies just like the United States greenback, the Russian ruble or the Iranian rial. The 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 new claims buying and selling trade

Co-founders of collapsed crypto hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, are attempting to lift cash for a new cryptocurrency trade in partnership with Coinflex co-founders Mark Lamb and Sudhu Arumugam. According to a pitch deck, they want to increase $25 million. The new trade will probably be referred to as GTX, and it’s going to goal claims in opposition to bankrupt firms, permitting clients to make use of claims as collateral for buying and selling. The initiative drew criticism from the crypto group.

Winners and Losers

At the tip of the week, Bitcoin (BTC) is at $21,856, Ether (ETH) at $1,621 and XRP at $0.40. The complete market cap is at $1.00 trillion, in line with CoinMarketCap.

Among the 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 prime three altcoin losers of the week are Gala (GALA) at -8.20%, Huobi Token (HT) at -6.34% and Trust Wallet Token (TWT) at -3.47%.

For extra data on crypto costs, be sure that to learn Cointelegraph’s market evaluation.

Most Memorable Quotations

“Crypto is getting very interesting because we’re finally starting to see the bear of regulation coming into play and I think, long term, that’s a good thing.”

Kevin O’Leary, enterprise capital investor

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

Anthony Scaramucci, co-founder of SkyBridge Capital

“What I’d like to do is to see the CFTC and other regulators provide more guidance this year and I’m very hopeful that perhaps we will see more clarity in the United States.”

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

“Bitcoin has just become a 24/7 VIX. It’s just a trading vehicle now for large funds who want to get in and out of risk on weekends and overnight trading hours.”

Jeff Dorman, chief funding officer at Arca

“The huge undertaking of [central bank] digital currencies is not worth the costs and risks.”

Tony Yates, former senior adviser to the Bank of England

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

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

Prediction of the Week 

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

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

Prices transferring by way of assist or resistance are affecting sentiment, however the buying and selling vary is effectively outlined, famous on-chain analytics useful resource Material Indicators. “I view the lack of BTC liquidity below $18k and above $23k as a lack of sentiment for those levels at this time,” the agency wrote on Twitter.

FUD of the Week 

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

Silvergate Bank has introduced a $1 billion internet loss attributable to widespread shareholders within the fourth quarter of 2022. The digital asset financial institution noticed vital outflows of deposits within the final quarter of 2022 primarily because of its relationship with FTX and Alameda Research. Silvergate faces a class-action lawsuit over its dealings with the crypto companies. Among the actions taken by the financial institution to take care of 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 Exchange Commission and the North American Securities Administrators Association for failing to register the supply and sale of its Earn Interest product. According to the corporate, the regulators didn’t allege any fraud or deceptive enterprise practices. On Jan. 12, Bulgarian prosecutors started looking Nexo’s Bulgarian places of work for alleged involvement in a large-scale cash laundering scheme, in addition to violations of Russia’s worldwide sanctions.

CoinDesk could possibly be up for grabs as guardian firm DCG scrambles for funds

A possible sale of cryptocurrency media outlet CoinDesk is being thought of by guardian firm Digital Currency Group. Investment bankers from Lazard are serving to the agency weigh choices, together with a full or partial sale. DCG has reportedly obtained a number of gives exceeding $200 million for the media agency over the previous few months. DCG’s enterprise capital portfolio includes 200 crypto-related companies.

Best Cointelegraph Features

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

Ben Goertzel has devoted his life to creating a synthetic normal intelligence — and outlines how he plans to massively scale blockchain to regulate it.

Crypto Mason’s loss of life threats from maxis: Hall of Flame

Crypto Mason is simply 22, however he already has greater than 1 million social media followers. And why did Lark Davis block him?

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

Leaders within the Web3 house got here collectively on the World Economic Forum in Davos to debate the primary outputs from the “Defining and Building the Metaverse” initiative.