Genesis bankruptcy filings – latest: Crypto lender to file for bankruptcy amid ‘big’ DoJ move

According to a report, crypto brokerage firm Genesis Global Capital may be preparing to file for bankruptcy. Bloomberg.

Citing sources with knowledge of the situation, the outlet reported that the firm was in talks with creditors amid the liquidity crunch. Bloomberg Earlier, the company reportedly said it could have to file for bankruptcy if it can’t raise funds to stay afloat.

Genesis suspended withdrawals from its platform in November, shortly after the collapse of crypto exchange FTX began.

In recent years, crypto companies have dominated the promenade at the Davos World Economic Forum, but this year they seem to have reduced their visibility. CNBC reports.

Aside from a bright orange crypto advertising sports car alone, crypto company ads have reportedly been much less prominent this year.

An NFT store selling digital tokens alongside images closed this year after the prices of the assets dropped significantly in 2022.

Cliff Sarkin, head of strategic affairs at Casper Labs, said the crypto businesses that remained in Davos at the exit were “significant projects” and “real deals”.

FBI Deputy Director Brian Turner said law enforcement will “relentlessly pursue” criminals acting in the crypto space following the arrest of Bitzlato cryptocurrency exchange founder Anatoly Legkodymov.

“The FBI will continue to track down actors who try to hide their criminal activities behind keyboards and use tools like cryptocurrency to evade law enforcement,” the DOJ said. “We, together with our federal and international partners, will work relentlessly to disrupt and liquidate such criminal attempts. Today’s arrest should be a reminder that the FBI will impose risks and consequences on those engaged in these activities.”

Mr. Legkodymov, a Russian national living in China, was arrested in Miami on Wednesday.

Speaking at the Davos World Economic Forum, several financial leaders made it clear that they do not trust cryptocurrencies, insisting to attendees that traditional investment and banking institutions are still safe to use.

Singapore’s Senior Minister, Tharman Shanmugaratnam, garnered laughter from the audience, saying crypto assets are “a little crazy”. Iris Market IQ.

UBS President Colm Kelleher said regulators are stalling in their ability to oversee “non-bank” assets, including cryptocurrencies.

“The regulators – respectfully – have cast a wholesale eye on the non-banking sector,” Kelleher said, according to Reuters.

François Villeroy de Galhau, member of the Governing Council of the European Central Bank, agreed, saying, “We must move on to some urgent non-bank regulation, starting with cryptocurrencies.”

The Ministry of Justice claimed that Anatoly Legkodymov, the founder of Bitzlato, was aware that Hydra Market transactions were illegal and that its users were using fake identities when transacting.

“Bitzlato’s customers routinely used the company’s customer service portal to request support for transactions with Hydra, Bitzlato provided this frequently and acknowledged in conversations with Bitzlato staff that they were trading under default identities,” the DOJ said. “Furthermore, Legkodymov and Bitzlato’s other administrators were aware that Bitzlato’s accounts were full of illegal activity and that many of its users were registered under the identities of others.”

Legkodymov wrote to a colleague that his clients were “known as scammers,” according to internal chat logs obtained by the DOJ. Authorities at Bitzlato reportedly warned the founder that its users are “addicts who buy drugs.” [at Hydra]” and “drug traffickers.”

Earlier today, crypto market cap reached $1 trillion for the first time since November, just before the mass sell-off and FTX crash of 2022.

It’s unclear whether the drop was due to the DOJ’s announcement, traders selling at a higher price, or both.

Despite the drop, Bitcoin has remained popular with investors, gaining 30 percent this year.

What was the darknet black market ‘Hydra Market’, one of Bitzlato’s biggest customers?

According to the Justice Department, Hydra Market is “an anonymous, illegal online marketplace for narcotics, stolen financial information, fake identity documents and money laundering services, which is the world’s largest and longest running darknet marketplace.”

“Hydra Market users exchanged more than $700 million in cryptocurrencies with Bitzlato directly or through intermediaries until the Hydra Market was shut down by US and German law enforcement in April 2022,” the DOJ said. “Bitzlato also generated more than $15 million in ransomware revenue.”

Price bitcoin It fell 5 percent in an hour after the US Department of Justice announced plans to enter major international markets. cryptocurrency executive action.

The world’s leading cryptocurrency dropped from $21,500 to around $20,500, reversing the bullish trend that has seen its price increase by almost a third since the start of the year.

read more The Independent’s Anthony Cuthbertson in his story below…

Dr Nouriel Roubini, sometimes referred to as “Dr Doom” for his dire economic forecasts, said during the Davos World Economic Forum on Wednesday that “90 percent of cryptocurrencies are a complete scam”.

“FTX and SBF are the rule, not the exception,” he said during a meeting. Yahoo Finance Activity

He continued to anticipate an impending raid.

“Literally 90% of cryptocurrency is a scam. It’s a criminal activity,” he said. “It’s a totally real pyramid scheme that’s about to burst.”

The US Department of Justice has announced that it has dealt a “significant blow” to the crypto crime landscape after arresting a Russian citizen who allegedly set up a major online crime platform.

Cryptocurrency exchange Bitzlato has processed more than $700 million worth of illegal funds and advertised its services to users “known to be scams,” according to the DOJ.

Anatoly Legkodymov, alleged founder, was arrested in Miami on Tuesday. Read more from: The Independent’s Anthony Cuthbertson in his story below…