Genesis bankruptcy filings – latest: Crypto lender to file for bankruptcy amid
Crypto Outlook at The World Economic Forum
Cryptocurrency firm Genesis Global Capital is planning to file for bankruptcy as early as this week, Bloomberg reported today.
The bankruptcy filing has been expected since the November fall of the FTX cryptocurrency exchange.
Meanwhile, the US Justice Department has announced that Anatoly Legkodymov, the Russian operator of the China-based crypto exchange Bitzlato, has been arrested. Bitzlato was a crypto exchange that allegedly worked with the darknet blackmarket Hydra Market, which dealt in illicit trade and served as a safe haven for ransomware attackers, according to the DOJ.
The US Justice Department issued a vague statement on Wednesday that it would “announce a major, international cryptocurrency enforcement action”, and noted that the US Treasury Department would also be making its own statement.
The announcement comes at a time when former FTX crypto exchange CEO Sam Bankman-Fried is facing charges of wire fraud, securities fraud, and conspiracy. The DOJ stressed that criminals using the crypto space for scams and other criminal activity should be aware the agency will use “every tool” to crack down on their activities.
Mr Bankman-Fried’s company – long considered one of the biggest crypto exchanges alongside Binance – declared bankruptcy after allegedly using, and losing, customers’ funds as investment capital.
Crypto companies scale back Davos visibility after year of losses, scandals
In recent years, crypto companies have dominated the promenade at the Davos World Economic Forum, but this year they appear to have scaled back their visibility, CNBC reports.
With the exception of a lone, flash orange crypto-advertising sports car, crypto company advertisements were reportedly far less prominent this year.
An NFT shop that was selling digital tokens alongside images closed up this year after prices for the assets dropped significantly in 2022.
Cliff Sarkin, chief of strategic relations at Casper Labs, told the outlet that the remaining crypto businesses at Davos are “subtantive projects” and “the real deals.”
Graig Graziosi19 January 2023 07:00
FBI says it will ‘relentlessly’ pursue crypto criminals
FBI Assistant Deputy Director Brian Turner said the law enforcement agency would “relentlessly pursue” criminals acting in the crypto space following the arrest of Bitzlato crypto exchange founder Anatoly Legkodymov.
“The FBI will continue to pursue actors who attempt to mask their criminal activity behind keyboards and use means such as cryptocurrency to evade law enforcement,” he said, according to the DOJ. “We, along with our federal and international partners, will work relentlessly to disrupt and dismantle these types of criminal enterprises. Today’s arrest should serve as a reminder the FBI will impose risk and consequences upon those who engage in these activities.”
Mr Legkodymov, a Russian national living in China, was arrested in Miami on Wednesday.
Graig Graziosi19 January 2023…
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