SBF denies stealing FTX assets, SEC charges Gemini and Genesis, and more: Hodler’s Digest: Jan. 8-14

Top Stories This Week

Sam Bankman-Fried: ‘I didn’t steal funds, and I actually didn’t stash billions away.’

In a “pre-mortem overview” of FTX’s chapter, Sam Bankman-Fried denied allegations of improper use of buyer funds saved with the crypto trade, attributing accountability for the corporate’s dramatic fall to the market crash of 2022 and Binance CEO Changpeng Zhao’s PR marketing campaign in opposition to FTX. In Bankman-Fried’s view, a run on the financial institution turned illiquidity points into insolvency. Among the most recent developments within the chapter proceedings, a bipartisan group of United States senators criticized one of many legislation companies concerned within the case on the grounds of a battle of curiosity, and referred to as on the U.S. Bankruptcy Court for the District of Delaware to nominate an unbiased examiner into FTX’s actions. Also within the week’s headlines, FTX lawyer Andy Dietderich stated the corporate has recovered $5 billion in money and liquid cryptocurrencies.

Gemini and Genesis charged by SEC with promoting unregistered securities

Crypto companies Genesis Global Capital and Gemini had been charged by the U. S. Securities and Exchange Commission (SEC) with providing unregistered securities via Gemini’s Earn program. Genesis and Gemini partnered on the product in 2020, providing prospects the possibility to mortgage crypto with the promise of later reimbursement with curiosity. The SEC said that the Gemini Earn program constitutes a proposal and sale of securities, and ought to have been registered with the fee. Tyler Winklevoss, co-founder of Gemini, stated the SEC’s motion was “totally counterproductive,” and famous that Gemini had been discussing the Earn program with the regulator “for more than 17 months.”.

DCG owes collectors over $3B, contemplating $500M VC portfolio sale

It has been a troublesome week for Genesis Global Trading and its mother or father firm, Digital Currency Group (DCG), as stories revealed that Genesis allegedly owes its collectors greater than $3 billion. To offset the shortfall, DCG, which additionally owns Grayscale Investments, seeks to promote a part of its enterprise capital holdings with greater than 200 crypto-related initiatives, together with crypto exchanges, banks and custodians in at the very least 35 international locations, totaling round $500 million in valuation.

El Salvador passes landmark crypto invoice, paving manner for Bitcoin-backed bonds

On Jan. 11, El Salvador handed the landmark Digital Assets Issuance legislation that establishes the authorized framework to challenge Bitcoin-backed bonds to pay down sovereign debt and fund the development of a so-called “Bitcoin City.” The bonds are anticipated to lift $1 billion for the nation, half of which will likely be used to construct the particular financial zone. The laws additionally creates a regulatory physique and establishes a authorized framework for all digital property within the nation.

Abu Dhabi-based Venom Foundation launches $1B fund for Web3 and blockchain

Venom Foundation, an Abu Dhabi-based blockchain platform, and Iceberg Capital introduced a brand new partnership that may allocate $1 billion to Web3 and blockchain firms, together with decentralized purposes targeted on funds, asset administration, decentralized finance and GameFi merchandise and companies. The funding fund will look to draw startups and expertise companies to make use of Venom’s proof-of-stake-based blockchain resolution.

Winners and Losers

At the tip of the week, Bitcoin (BTC) is at $19,297, Ether (ETH) at $1,418 and XRP at $0.37. The complete market cap is at $916.5 billion, in response to CoinMarketCap.

Among the largest 100 cryptocurrencies, the highest three altcoin gainers of the week are Gala (GALA) at 125.9%, Aptos (APT) at 77.52% and Optimism (OP) at 45.28%.

The high three altcoin losers of the week are Fei USD (FEI) at -2.53%, Nexo (NEXO) at -2.29% and UNUS SED LEO (LEO) at 0.07%.

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

Most Memorable Quotations

“There are still some overhangs — DCG and Genesis and Gemini — that will play out in the next quarter. That’s not going to be great.”

Mike Novogratz, CEO of Galaxy Digital Holdings

“History tells us there’s not much room for micro currencies, meaning, you know, we have the U.S. dollar and Europe has the euro and the like.”

Gary Gensler, chair of the U.S. Securities and Exchange Commission

“As long as there is interest in the crypto market, the number of hackers will not decrease.”

Tommy Deng, managing director of Beosin

“People talk about the [Bitcoin] problem of volatility, but this is nothing when you live in a place where your money could easily lose half its value in a year.”

Megasley, Nigeria’s first Lightning node runner

“There is no path forward as long as Barry Silbert remains CEO of DCG.”

Cameron Winklevoss, co-founder of Gemini

“It was a political act and not a financial gesture. Like those who grow mustaches in November to fight prostate cancer. I put this salary in Bitcoin on a cold wallet every month and I haven’t touched it.”

Christophe De Beukelaer, Belgian lawmaker

Prediction of the Week 

Bitcoin worth desires to retest 2017 all-time excessive close to $20K

The worth of Bitcoin has jumped in current days and sits close to $19,000 on the finish of this week, in response to knowledge from Cointelegraph Markets Pro and TradingView.

On-chain analytics useful resource Material Indicators predicts there may very well be a retest of the $20,000 mark. “Seems like BTC is setting up for a retest of resistance at the 2017 Top,” it wrote on Twitter.

According to the analytics agency, “whether we see a bonafide breakout or fakeout remains to be seen. Time for patience and discipline.”

FUD of the Week 

Nexo workplaces reportedly raided by police in Bulgaria

Bulgarian regulators are growing strain on cryptocurrency lender Nexo, after a bunch of prosecutors, investigators and overseas brokers searched the corporate’s workplaces within the Bulgarian capital metropolis of Sofia on Jan. 12. The operation was initiated a number of months in the past, focusing on a large-scale monetary legal scheme allegedly involving cash laundering and violations of worldwide sanctions in opposition to Russia. Nexo has complained in regards to the actions of the legislation enforcement authorities and is making ready to file a lawsuit in opposition to authorities to hunt compensation for damages brought on by the abrupt police interruption.

Scam alert: MetaMask warns crypto customers about tackle poisoning

Digital pockets supplier MetaMask warned customers of an “address poisoning scam,” the place attackers “poison” transaction histories. The assault doesn’t enable hackers to entry person’s wallets, however those that have grow to be ordinary about copying their pockets addresses from transaction histories might doubtlessly ship funds to copycat addresses.

Crypto.​com CEO broadcasts 20% workers minimize, ‘did not account’ for FTX collapse

A brand new wave of workers layoffs has been introduced by crypto trade Crypto.com, which can scale back its world workforce by 20% following “recent industry events.” Also preventing to outlive the bear market, Coinbase is closing most of its Japanese operations as a part of a restructuring plan that goals to cut back 20% of the trade workers..

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Crypto layoffs mount as exchanges proceed to be ravaged by the prevailing bear market

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