CryptoSlate Wrapped Daily: Genesis reportedly preparing to file for bankruptcy; ConsenSys plans layoffs

The biggest cryptocurrency news of January 1st saw 18 rumors circulate indicating that Genesis is preparing a pre-packaged bankruptcy filing. Meanwhile, Ethereum developer ConsenSys announced that it will lay off about 11% of its workforce.

HElsewhere, Hong Kong-based exchange Bitlavo is being hacked, the Bank of Spain has approved a euro-pegged stablecoin, the Securities and Exchange Commission is increasing its cryptocurrency measures, and Coinbase is ceasing operations in Japan. Tucker Carlson suggested that the bitcoin price hike could be due to ransomware demands. In addition, research the ratio of spot bitcoin to futures.

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Top CryptoSlate Stories

It’s been rumored that Genesis is preparing to file for bankruptcy as soon as next week

Genesis Trading, the institutional trading platform owned by Digital Currency Group (DCG), is said to be preparing a “pre-processed” bankruptcy filing with creditors.

in january. 18, Bloomberg reported, “Genesis Global Capital lays the groundwork for filing for bankruptcy as soon as this week.” The news provides some clarification regarding the creditors’ repayment schedule. However, the dividend was discontinued on January 3rd. 17 is perhaps for DCG investors the most significant indicator yet that things are looking dire within the group.

ConsenSys CEO confirms layoffs, the company to focus on expanding its core offerings

Joseph Lubin, CEO of ConsenSys, said in January. 18 message that the company is focused on expanding its core offering and will lay off 96 employees – 11% of its workforce “to adapt to the challenging and uncertain market.”

The CEO said, “We are very grateful for their contributions and the work they have done. Each of the affected employees will be notified today by their manager.”

The CEO said ConsenSys will provide “generous packages” to help laid-off employees. This will cover severance packages subject to length of service, an extended option exercise window from 12 months to 36 months, tailored employment assistance and healthcare benefits in some jurisdictions.

Hong Kong Bitzlato Stock Exchange tuning; Founder arrested

Anatoly Legkodimov, the founder of Hong Kong-registered cryptocurrency exchange Bitzlato, was arrested in Miami on Wednesday and charged with operating an unregistered money transfer business that violated anti-money laundering laws and facilitated illegal money transfers, the US Department of Justice announced on the 28th. January. 18.

Russian citizen Legkodimov was the majority shareholder of Bitzlato and controlled the stock exchange.

In addition, French authorities worked with Europol and authorities in Spain, Portugal and Cyprus to dismantle Pizzlato’s digital infrastructure.

The Spanish Central Bank approves the digital euro symbol EURM

El Banco de España (Spain’s central bank) has authorized the test of the digital euro token EURM.

The token will be issued by Spanish fintech Money and developed within the central bank’s digital “sandbox” programme.

Spanish news site Cinco Dias reports that the project will be limited to a small group of test takers during the initial phase. Applicants are required to enter a phone number and go through a video-based KYC process before loading their digital wallets with traditional euros through Spanish payment app Bizum.

SEC Crypto Enforcement Up 50% in 2022 – Nearly Half Against ICOs

The US Securities and Exchange Commission (SEC) took 30 enforcement actions against cryptocurrency market participants last year — the highest level since 2013, according to a Cornerstone Research report.

The report stated that the number of enforcement actions issued by the SEC in 2022 increased by 50% from 20 measures launched in 2021.

Fox News Host Condemns Bitcoin Pumping to Ransomware Hackers

Fox News host Tucker Carlson Suppose the recent bullish market moves were due to the US government buying Bitcoin to pay ransomware attackers.

Specifically, Carlson linked the FAA’s recent decision to ground flights to a cyberattack, assuming that “almost all ransoms are paid in bitcoin.”

in january. On September 11, the FAA halted departures nationwide, delaying thousands of flights, due to a “computer outage.”

Coinbase to cease operations in Japan

Coinbase has announced that it will cease operations in Japan due to the current market conditions.

The stock exchange said in January. 18 announced that it had to “make the difficult decision” to cease its operations in the country and conduct a full review of its Japanese business.

The decision comes just days after the company announced that it had begun winding down operations in the country. Coinbase Vice President of Business Development Nana Murugesan said Jan. 3. 11 that the company was not interested in mergers and acquisitions and would not sell its Japanese unit.

Every third member of the US Congress has received money from FTX

Of the 535 senators and delegates in the US Congress, 196 were found to have received cash donations from FTX.

The congressmen have been profiled by CoinDesk journalists in a major research effort to highlight Congress’ connection to the failed exchange.

Journalists reached out to all 196 members for comment and only received responses from 53 campaigns.

About 64% of respondents said they decided to donate the amounts to non-profit causes, while 38% said they were keeping the money and waiting for instructions on how to return it.

Research highlights

Research: The ratio of Bitcoin Spot to Futures shows retail price of more than $20,000

The data was analyzed by cryptoslite Bitcoin and Ethereum Spot to Futures (SFV) showed a strong divergence in the trend, with the previous SFV still higher.

The futures volume metric looks at the ratio of spot volume versus futures volume for a given cryptocurrency.

The spot rate refers to the current price for the immediate purchase of cryptocurrencies and forms the basis for all derivatives markets. Strong dot volume means healthy accumulation, which leads to sustainable price growth.

Retail buyers usually use the spot markets, while well-funded institutions and seasoned traders tend to trade derivatives.