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

This week’s top stories

Cryptocurrency lender Genesis files for Chapter 11 bankruptcy

FTX contagions proceed to spread within the crypto industry, with Genesis Capital filing for bankruptcy protection in New York, estimating liabilities starting from $1 billion to $10 billion and assets at the identical level. The company is planning a “two-track process” that can perform a “sale, capital raising and/or equity transaction” and permit the corporate to “appear under latest ownership”. According to the corporate, Genesis derivatives, spot trading, broker-dealer and fiduciary activities will not be affected by the investigation. In an effort to keep up liquidity, parent company Genesis Digital Currency Group has suspended dividend payments.

Bitzlato and its founder face enforcement motion by U.S. authorities

US authorities have taken enforcement motion against crypto firm Bitzlato, seizing the corporate’s website and labeling the corporate a “major money laundering problem” linked to Russian illicit funding. As a part of the case, FBI officers arrested Russian citizen Anatoly Legkodymov in Miami. The criminal grievance alleges that the corporate was a “key financial asset” for the Darknet Hydra marketplace, allowing users to launder funds, including from ransomware attacks.

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The CEO of FTX says he’s considering relaunching the exchange

New FTX CEO John Ray, appointed prior to bankruptcy proceedings, arrange a task force to think about relaunching FTX.com. He noted in an interview that every thing is “on the table” regarding the longer term of FTX.com, including a possible path to relaunching the exchange. In one other case headline, former FTX CEO Sam Bankman-Fried was accused of using his influence within the crypto industry to inflate the costs of certain coins through a coordinated strategy with Alameda Research. The bankruptcy proceedings are facing challenges as Alameda’s liquidators have suffered losses of at the least $11.5 million since taking control of the trading accounts.

Iran and Russia need to issue a latest gold-backed stablecoin

Iran’s Central Bank is reportedly working with the Russian government to jointly issue a latest gold-backed stablecoin. The “Gulf region token” could be used as a payment method in foreign trade as an alternative of fiat currencies resembling the US dollar, Russian ruble or Iranian rial. The latest cryptocurrency would operate in a special economic zone in Astrakhan, where Russia accepts Iranian cargo shipments.

3AC, the founders of Coinflex, are collaborating to lift $25 million for a latest claims trading exchange

Co-founders of failed cryptocurrency hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, try to lift money for a latest cryptocurrency exchange in partnership with Coinflex co-founders Mark Lamb and Sudhu Arumugam. According to the presentation, they need to lift $25 million. The latest exchange will probably be called GTX and can goal claims against failed firms, allowing customers to make use of claims as collateral for trades. The initiative was met with criticism from the crypto community.

Winners and losers

Bitcoin at the tip of the week (BTC) is at $21,856Ether (ETH) in $1621 and XRP in $0.40. The total market capitalization is $1.00 trillion, with regard to CoinMarketCap.

Among the highest 100 cryptocurrencies, the three biggest altcoins gaining the week are Frax Share (FXS) at 67.88%, Hedera (HBAR) at 45.32% and Convex Finance (CVX) at the extent of 44.01%.

The top three altcoin losers of the week are Gala (GALA) at -8.20%, Huobi token (HT) at -6.34% and a trust wallet token (TWT) at -3.47%.

For more information on cryptocurrency prices, read the Cointelegraph Market Analysis.

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Most Memorable Quotes

“Crypto is getting very interesting as we’re finally beginning to see a regulatory bear come into play and I believe that is a great thing in the long term.”

Kevin O’Learyenterprise capitalist

“Actually, I believed he was [Sam Bankman-Fried] was Mark Zuckerberg cryptocurrency. I didn’t know it was Bernie Madoff. And that is something I should have. I even have it anyway.”

Antoni Scaramuccico-founder of SkyBridge Capital

“I wish the CFTC and other regulators would offer more guidance this yr, and I very much hope that perhaps we’ll see more transparency within the United States.”

Carolina Phamcommissioner of the Commodity Futures Trading Commission (CFTC)

“Bitcoin just became 24/7 VIX. Now it’s only a trading tool for giant funds that need to take risks and exit during weekends and overnight trading hours.”

Jeff Dormaninvestment director at Arca

“An enormous undertaking [central bank] digital currencies will not be value the price and risk.

Tony Yatesformer senior adviser to the Bank of England

“I do not think DeFi goes to attack TradFi. DeFi is supposed to enrich TradFi, at the least initially.

Emin Gun Sirerco-founder and CEO of Ava Labs

Weekly forecast

Bitcoin is taking a look at the 21.4k zone USD as analyst predicts BTC price will chase gold

According to data from Cointelegraph Markets Pro i TradingView.

Prices passing through support or resistance affect sentiment, however the trading range is well defined, noted within the on-chain Material Indicators analytics resource. “I consider BTC’s lack of liquidity below $18,000 and above $23,000 to be unsentimental about these levels presently,” the corporate tweeted.

FUD of the week

Silvergate Posts $1 Billion Net Loss in Q4 2022

Silvergate Bank announced a net lack of $1 billion attributable to odd shareholders within the fourth quarter of 2022. The digital asset bank saw a big outflow of deposits within the last quarter of 2022, mainly as a result of its relationships with FTX and Alameda Research. Silvergate is facing a category motion lawsuit over dealings with crypto firms. Among the activities undertaken by the bank in an effort to maintain money liquidity, there have been wholesale financing and the sale of debt securities.

Nexo agrees to $45 million settlement with SEC and says it’s earning the product

Crypto lender Nexo Capital has agreed to pay a $45 million positive to the U.S. Securities and Exchange Commission and the North American Association of Securities Administrators for failing to register the offering and sell the Earn Interest product. According to the corporate, regulators haven’t alleged any fraud or misleading business practices. On January 12, the Bulgarian prosecutor’s office began searching Nexo’s Bulgarian offices for alleged involvement in large-scale money laundering, in addition to violations of Russia’s international sanctions.

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

The potential sale of cryptocurrency media portal CoinDesk is being considered by parent company Digital Currency Group. Lazard’s investment bankers help the corporate consider options, including a full or partial sale. DCG has reportedly received multiple bids in excess of $200 million for the media company up to now few months. DCG’s enterprise capital portfolio includes 200 cryptocurrency-related firms.

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Editorial staff

Cointelegraph magazine authors and reporters contributed to this text.

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