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

Top news this week

Crypto Lender Genesis Files for Chapter 11 Bankruptcy

The FTX contagions continue to spread through the crypto industry, with Genesis Capital filing for bankruptcy protection in New York, estimating liabilities in the range of $1 billion to $10 billion and assets at the same level. The company plans a “two-way process,” which will pursue a “sale, capital increase, and/or an acquisition transaction” and allow the business to “emerge under new ownership.” Genesis’ derivatives, spot trading, brokerage and custody businesses are not included in the proceedings, according to the company. In an effort to maintain liquidity, Genesis’s parent company, Digital Currency Group, has suspended dividend withdrawals.

Bitzlato and its founder face coercive measures from the US authorities

Authorities in the United States have cracked down on crypto company Bitzlato, seizing the company’s website and labeling the business a “primary money laundering concern” related to Russian illicit finance. As part of the case, FBI officials arrested Russian national Anatoly Legkodymov in Miami. The criminal complaint claims that the company was a “crucial financial resource” for Hydra’s darknet marketplace, which allowed users to launder funds, including from ransomware attacks.

FTX CEO says he is exploring restarting the exchange

New FTX CEO John Ray, appointed before the bankruptcy proceedings, has created a working group to consider relaunching FTX.com. He noted in an interview that everything is “on the table” when it comes to the future of FTX.com, including a possible way forward regarding restarting the exchange. In another case headline, former FTX CEO Sam Bankman-Fried has been accused of using his influence in the cryptocurrency industry to inflate the prices of some coins through a coordinated strategy with Alameda Research. The bankruptcy proceedings face challenges, as Alameda’s liquidators have suffered losses of at least $11.5 million since they took control of their business accounts.

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

The Central Bank of Iran is reportedly cooperating with the Russian government to jointly issue a new gold-backed stablecoin. The “Persian Gulf region token” would serve as a method of payment 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 accepts Iranian cargo shipments.

3AC, Coinflex Founders Collaborate to Raise $25 Million for New Claims Trading Exchange

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

Winners and losers

At the end of the week, Bitcoin (BTC) I sat down $21,856Ether (ETH) a $1,621 Y XRP a $0.40. Total market capitalization is $1.00 trillion, according to to CoinMarketCap.

Among the largest 100 cryptocurrencies, the top three altcoin gainers of the week are Frax Share (FXS) at 67.88%, ivy (HBAR) at 45.32% and Convex Finance (CLC) at 44.01%.

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

To learn more about cryptocurrency prices, be sure to read Cointelegraph’s market analysis.

most memorable quotes

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

Kevin O’Learyventure capital investor

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

antonio scaramuccico-founder of SkyBridge Capital

“What I would like to do is see more guidance from the CFTC and other regulators this year and I am very hopeful that maybe we will see more clarity in the United States.”

carolina phamcommissioner of the Commodity Futures Trading Commission (CFTC)

“Bitcoin just became a 24/7 VIX. Now it’s just a trading vehicle for large funds who want to get in and out of risk on weekends and nightly trading hours.”

jeff dormanArca investment director

“The great company of [central bank] Digital currencies are not worth the costs and risks.”

tony yatesformer chief 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.”

Mr Emin Gunco-founder and CEO of Ava Labs

prediction of the week

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

Bitcoin surged towards fresh multi-month highs, with BTC/USD holding support at $21,000, according to data from Cointelegraph Markets Pro and TradingView.

Prices moving through support or resistance are weighing on sentiment, but the trading range is well defined, noted on-chain analysis resource Material Indicators. “I see the lack of BTC liquidity below $18k and above $23k as a lack of sentiment for those levels at this time,” the firm wrote on Twitter.

FUD of the week

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

Silvergate Bank announced a $1 billion net loss attributable to common stockholders in the fourth quarter of 2022. The digital asset bank experienced significant deposit outflows in the fourth quarter of 2022, primarily due to its relationship with FTX and Alameda Research. . Silvergate is facing a class action lawsuit over its dealings with crypto companies. Among the actions carried out by the bank to maintain cash liquidity are wholesale deposits and the sale of debt securities.

Nexo agrees to a $45 million settlement with the SEC and testifies about the Earn product

Crypto lender Nexo Capital has agreed to pay $45 million in penalties to the US Securities and Exchange Commission and the North American Securities Managers Association for failing to register the offer and sale of its Earn Interest product. According to the company, the regulators did not allege any fraud or deceptive business practices. On January 12, Bulgarian prosecutors began searching Nexo’s offices in Bulgaria for alleged involvement in a large-scale money laundering scheme, as well as violations of Russia’s international sanctions.

CoinDesk could be up for grabs as parent company DCG struggles for funding

Parent company Digital Currency Group is considering a potential sale of cryptocurrency media outlet CoinDesk. Lazard’s investment bankers are helping the company weigh options, including a full or partial sale. DCG has reportedly received multiple offers in excess of $200 million for the media company in recent months. DCG’s venture capital portfolio comprises 200 crypto-related businesses.