Genesis has filed for Chapter 11 bankruptcy due to losses suffered in the collapse of FTX and Three Arrows Capital Hedge Fund. The company says it has $150M in cash that it will use to fund operations during the restructuring process. More: - Genesis is a Digital Currency Group (DCG) subsidiary launched in 2013 as an over-the-counter Bitcoin trading desk.
- Genesis was the biggest creditor to 3AC, loaning out $2.36B in an under-collateralized loan.
- The Chapter 11 bankruptcy includes Genesis Global, Genesis Global Capital, and Genesis Asia Pacific.
- Genesis Global Trading and other subsidiaries involved in derivatives and spot trading and its custody businesses are not included in the bankruptcy.
- Gemini and Genesis had partnered on the Gemini Earn program to allow investors a chance to earn as much as 7.4% interest on their crypto holdings.
- In November, Genesis suspended client withdrawals soon after FTX filed for bankruptcy.
- Gemini Earn was suspended on Jan. 11, and a public battle broke out between the founders of Gemini and Genesis.
- Gemini intended to force Genesis to repay the $900M loan.
- Last week, The SEC sued Gemini and Genesis for selling unregistered offerings.
- Late Thursday evening, Genesis filed for Chapter 11 bankruptcy.
- Gemini intends to sue Digital Currency Group (DCG).
- We have been preparing to take direct legal action against Barry [Silbert, DCG CEO]," said Gemini founder Cameron Winklevoss. He went further by saying, "Unless Barry and DCG come to their senses and make a fair offer to creditors, we will be filing a lawsuit against Barry and DCG imminently."
- DCG responded to the Winklevoss twins by saying it is "preserving all legal remedies in response to these malicious, fake, and defamatory attacks."
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John Ray, the newly appointed CEO of FTX, is considering restarting the platform to "recover more value" for those who lost money. FTX's new boss thinks it is possible to resurrect the platform instead of liquidating its assets. More: - In an interview with Wall Street Journal, Ray, who took over in November, said he has set up a task force to explore restarting FTX.com.
- The FTT token rose more than 30% following the announcement.
- Sam Bankman-Fried responded on Twitter by saying, "I'm glad Mr. Ray is finally paying lip service to turn the exchange back on after months of squashing such efforts!"
- "I'm still waiting for him to finally admit FTX US is solvent and give customers their money back," Bankman-Fried said.
- SBF has been accused of stealing billions of dollars to fund his own interests and to pay off Alameda Research's debt. He pleaded not guilty.
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Nexo terminated its "Earn Interest" program and will pay the SEC $45M to settle the case. The SEC says the Nexo "Earn Interest" product offering required registration with the agency, which the company did not do. More: - Nexo is a U.K.-based company that was launched in 2018. It loans out clients' funds and uses proceeds to pay interest.
- In 2020, the company launched its "Earn Interest" program, which received cease-and-desist orders from several U.S. state regulators, including South Carolina, California, Vermont, and others.
- They claimed that Nexo was offering unregistered securities.
- Gurbir S. Grewal, director of the SEC's enforcement division, says, "crypto assets are not exempt from the federal securities laws."
- Nexo has agreed to pay a $22.M penalty and an additional $22.5M to settle with the SEC.
- The company is also terminating the offering of unregistered lending products to all U.S. investors.
- Nexo was also charged for failing to register with the SEC.
- "Where crypto companies do not comply, we will continue to follow the facts and the law to hold them accountable," said SEC Chairman Gary Gensler.
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The SSV.network DAO launched its $50M Ecosystem Fund to "solidify DVT as a critical Ethereum infrastructure." There are currently 20 companies building on top of SSV.network's DVT protocol, and the fund aims to increase this number. More: - SSV.network is an open-source and decentralized protocol. Its DAO launched $50M to support the development of Distributed Validator Technology ("DVT") based applications.
- DVT is an infrastructure primitive that allows validators to share keys between non-trusting parties on the Ethereum network.
- The technology relies on network nodes that generate ETH rewards for stakers.
- Since Ethereum switched to proof-of-stake, the amount of staked ETH has grown by 18%, representing 13.8% of ETH supply, valued at $22.42B.
- The $50M in funding was secured by the following investors: DCG, OKX, HashKey, NGC, Everstake, HackVC, GSR, Chorus One, SevenX, and 1kx.
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Brett Harrison, former President of FTX US, raised $5M from Coinbase Ventures and Circle Ventures to launch a new crypto venture. Harrison left FTX US in September and has not been accused of any wrongdoing in the collapse of FTX. More: - Harrison's new venture is called Architect and is trading software to make centralized and decentralized crypto markets more accessible for large institutional investors.
- He initially aimed to raise as much as $10M at a $100M valuation but said that he struggled to win investors due to his ties with FTX.
- Venture funding has declined by 75% in the crypto space. Still, despite this, Harrison has been able to secure $5M from investors such as Anthony Scaramucci and SALT Fund, which is managed by his son, AJ Scaramucci, SV Angel, Third Kind Venture Capital, and Motivate Venture Capital.
- The funding will be used to hire team members. "I do hope to be able to hire a number of my former FTX US colleagues," he said.
- Harrison plans to launch the platform in the second quarter.
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Former U.S. President Donald Trump's NFT collection sales volume rose 800% from $34,000 on Tuesday to $306,000 on Thursday. There was $241,000 worth of sales at press time on Friday, with a 1,900% jump in 24-hour trading volume. More: - CryptoSlam recorded 115 total transactions that had a sale of $296 worth of ETH per NFT on Tuesday.
- 704 NFTs traded for $435 apiece on Thursday, and on Friday, the average sale price was about $670.
- Trump launched the collection with a $99 price tag on Dec. 15.
- Some speculate that Trump's NFTs are surging due to his rumored return to social media, as Elon Musk recently unbanned his Twitter account.
- The collectibles come with a chance to win perks like a meet-and-greet or a dinner with the former president.
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 |  | Gia Mattu is based in Calgary, Alberta. She is an entrepreneur with experience in climate technology, drones, AI, machine learning, and blockchain technology. When she's not working, she loves to hike the Canadian Rockies, try new cuisine, and travel. | | | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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