The biggest news in the cryptoverse for January 18th saw rumors circulating suggesting that Genesis is preparing a pre-packaged bankruptcy filing. Meanwhile, Ethereum development firm ConsenSys announced that it will lay off around 11% of its workforce.
meElsewhere, Hong Kong-based exchange Bitlavo has been seized, the Bank of Spain has approved a euro-pegged stablecoin, the SEC is increasing its crypto stock, and Coinbase is halting its operations in Japan. Tucker Carlson has suggested that the Bitcoin price surge could be due to ransomware lawsuits. Also, he researched the spot-to-futures ratio of Bitcoin.
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Genesis is rumored to be preparing to file for bankruptcy as soon as next week
Genesis Trading, the institutional trading platform owned by Digital Currency Group (DCG), is reportedly preparing a “pre-packaged” bankruptcy filing with creditors.
On January 18, Bloomberg reported, “Genesis Global Capital is laying the groundwork to file for bankruptcy as soon as this week.” The news gives some clarification regarding a schedule for creditors to be reimbursed. However the hesitant Dividend announcement on January 17 for DCG investors was perhaps the most significant indicator yet that things are looking dire within the group.
ConsenSys CEO confirms layoffs, signs to focus on scaling core offerings
ConsenSys CEO Joseph Lupin said in a January 18 statement letter that the company is focusing on scaling its core offerings and will lay off 96 employees, 11% of its workforce to “adapt to the challenging and uncertain market.”
The CEO said: “We are extremely grateful for your contributions and the work you have done. Each of the affected employees will be notified today by their manager.”
The CEO said that ConsenSys would provide “generous packages” to help laid off employees. This would cover tenure-based severance packages, an extended option exercise window from 12 months to 36 months, personalized placement assistance, and healthcare benefits in certain jurisdictions.
Hong Kong Bitzlato exchange seized; founder arrested
Anatoly Legkodymov, the founder of Hong Kong-registered cryptocurrency exchange Bitzlato, was arrested in Miami on Wednesday and charged with allegedly running an unregistered money transfer business that violated anti-money laundering laws and facilitated transmissions of illicit funds, the US Department of Justice reported. Announced January 18.
Russian national Legkodymov was a majority shareholder in Bitzlato and controlled the stock market.
In addition, the French authorities, in collaboration with Europol and the authorities of Spain, Portugal and Cyprus, dismantled the digital infrastructure of Bitzlato.
The Spanish central bank approves the euro digital token EURM
The Bank of Spain (Central Bank of Spain) has authorized proof of a digital euro token EURM.
The token will be issued by the Spanish fintech Monei and was developed within the central bank’s digital ‘sandbox’ program.
Spanish news site Cinco Días reported that the project would be limited to a small group of test applicants during the initial phase. Applicants must enter a phone number and undergo a video-based KYC process before loading their digital wallets with traditional euros through the Spanish payment app Bizum.
SEC Crypto Enforcement Actions Up 50% in 2022, Nearly Half Against ICOs
The US Securities and Exchange Commission (SEC) initiated 30 enforcement actions against crypto market participants last year, the most since 2013, according to Cornerstone Research. report.
The number of SEC enforcement actions in 2022 increased 50% from the 20 actions launched in 2021, according to the report.
Fox News Host Attributes Bitcoin Bomb to Ransomware Hackers
Fox news anchor Tucker Carlson Theorized that the recent bullish market moves were due to the US government buying Bitcoin to pay ransomware attackers.
Specifically, Carlson linked the recent Federal Aviation Administration (FAA) grounding of flights to a cyberattack, positing that “almost all ransoms like this are paid in Bitcoin.”
On January 11, the FAA halted departures nationwide, delaying thousands of flights, due to a “computer outage.”
Coinbase to stop operation in Japan
Coinbase announced that it would halt its operation in Japan due to current market conditions.
The exchange said in a January 18 advertisement that it was forced to “make the difficult decision” to halt operations in the country and conduct a complete review of its Japanese business.
The decision comes just days after the company Announced that began to close its operations in the country. Coinbase Vice President of Business Development Nana Murugesan said on Jan. 11 that the company was not interested in M&A and will not sell its Japanese unit.
Every third member of the US Congress received money from FTX
Of 535 United States Senators and Representatives, 196 were found to have received cash donations from FTX.
The members of Congress were identified by CoinDesk journalists in a large research effort to shed light on the congressional connection to the failed exchange.
Journalists reached out to all 196 members for comment and received responses from only 53 campaigns.
Some 64% of those surveyed said they decided to donate the amounts to nonprofit causes, while 38% said they were holding onto the money and awaiting guidance on how to pay it back.
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Research: Bitcoin Spot to Futures Ratio Shows Retail Price Driven Price Above $20,000
Data analyzed by CryptoSlate showed a sharp contrast between Bitcoin and Ethereum Spot to Futures Volume (SFV) trends, with the former’s SFV continuing to rise.
The Spot to Futures Volume metric analyzes the relationship between spot volume and futures volume for a particular cryptocurrency.
The spot price refers to the current price for the immediate purchase of the cryptocurrency and forms the basis for all derivatives markets. Strong spot volume equals healthy buildup, leading to sustainable price growth.
Retail buyers typically use spot markets, while experienced and well-funded traders and institutions tend to trade derivatives.
cryptomarket
In the last 24 hours, Bitcoin (BTC) fell -2.75% to trade at $20,770.04, while Ethereum (ETH) dipped -3.75% to $1,525.85.
Biggest winners (24h)
- Kava (KAVA): 10.58%
- Galxe (GAL): 8.48%
- SHIBA INU (SHIB): 7.19%
The biggest losers (24h)
- Serum (SRM): -14.95%
- FTX Chip (FFT): -13.69%
- MAGIC (MAGIC): -12.46%
