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.
Justice Department arrests head of China-based crypto exchange operating on dark web
Bitcoin prices dive ahead of DOJ announcement
What is Hydra Market?
FBI says it will ‘relentlessly’ pursue crypto criminals
Genesis Global Capital to file for bankruptcy this week, sources say
Influencer Logan Paul lays out roadmap for addressing Crypto Zoo scandal
04:59 , Graig Graziosi
Several financial leaders speaking at the Davos World Economic Forum made clear they did not trust cryptocurrencies, and insisted to attendees that traditional investment and banking institutions were still safe to use.
Senior Minister Tharman Shanmugaratnam of Singapore said that crypto assets were “slightly crazy,” eliciting a laugh from the audience, according to Iris Market IQ.
UBS Chairman Colm Kelleher said that regulators had faltered in their ability to police “non-bank” entities, which includes cryptocurrencies.
“Regulators have — with respect — taken their eyes off the ball in terms of the non-banking sector,” Mr Kelleher said, according to Reuters.
European Central Bank Governing Council member Francois Villeroy de Galhau agreed, saying “we should rush to some urgent non-bank regulation starting with cryptos.”
04:00 , Graig Graziosi
The Department of Justice claimed that Bitzlato’s founder, Anatoly Legkodymov, was aware of the illicit nature of Hydra Market transactions, and knew that its users were using false identities while making transactions.
“Bitzlato’s customers routinely used the company’s customer service portal to request support for transactions with Hydra, which Bitzlato often provided, and admitted in chats with Bitzlato personnel that they were trading under assumed identities,” the DOJ said. “Moreover, Legkodymov and Bitzlato’s other managers were aware that Bitzlato’s accounts were rife with illicit activity and that many of its users were registered under others’ identities.”
According to internal chat logs obtained by the DOJ, Mr Legkodymov wrote to a colleague that their customers were “known to be crooks.” Officials at Bitzlato reportedly warned the founder that its users were “addicts who buy drugs [at Hydra]” and “drug traffickers.”
03:00 , Graig Graziosi
Earlier today the crypto market cap touched $1 trillion for the first time since November, just before 2022’s mass sell-off and FTX collapse.
It’s unclear if the drop was the result of the DOJ’s announcement, or due to traders selling at the higher price, or both.
Despite the drop, Bitcoin has remained popular among investors, gaining 30 per cent this year.
02:00 , Graig Graziosi
What was ‘Hydra Market,’ the darknet black market that was one of Bitzlato’s largest customers?
According to the Department of Justice, Hydra Market is “an anonymous, illicit online marketplace for narcotics, stolen financial information, fraudulent identification documents, and money laundering services that was the largest and longest running darknet market in the world.”
“Hydra Market users exchanged more than $700 million in cryptocurrency with Bitzlato, either directly or through intermediaries, until Hydra Market was shuttered by U.S. and German law enforcement in April 2022,” the DOJ wrote. “Bitzlato also received more than $15 million in ransomware proceeds.”
01:00 , Graig Graziosi
The price of bitcoin has fallen by 5 per cent in the space of an hour after the US Department of Justice announced plans to introduce major international cryptocurrency enforcement action.
The world’s leading crypto dropped from $21,500 to around $20,500, reversing an upward trend that had seen its price rise by nearly a third since the start of the year.
Read more from The Independent’s Anthony Cuthbertson in his story below…
Bitcoin price plummets amid major DOJ crypto announcement
00:00 , Graig Graziosi
Dr Nouriel Roubini — who is sometimes called “Dr Doom” for his grim economic predictions — said that “literally 90 per cent of crypto is a scam” during the Davos World Economic Forum on Wednesday.
“FTX and SBF are not an exception — they’re a rule,” he said during a Yahoo Finance event.
He went on to predict a forthcoming bust.
“Literally 90% of crypto is a scam. A criminal activity,” he said. “A total real-bubble Ponzi scheme that is going bust.”
Wednesday 18 January 2023 23:00 , Graig Graziosi
The US Department of Justice has announced that it has dealt a “significant blow” to the crypto crime landscape after arresting a Russian national alleged to have founded a major criminal online platform.
Cryptocurrency exchange Bitzlato processed more than $700 million dollars’ worth of illicit funds, according to the DOJ, advertising its services to users who were “known to be crooks”.
Alleged founder Anatoly Legkodymov was arrested in Miami on Tuesday. Read more from The Independent’s Anthony Cuthbertson in his story below…
Huge crypto crime network shut down in ‘significant blow’ to hackers, DOJ announces
Wednesday 18 January 2023 21:30 , Graig Graziosi
Chinese-based cryptocurrency exchange Bitzlato — whose CEO Anatoly Legkodymov, was arrested by the DOJ in Miami on Tuesday — is responding to its customers through an automated message on Telegraph with the phrase “oops, sorry” along with a sad face emoji, according to NBC News.
The DOJ alleges the company frequently dealt with Hydra Market, an illicit digital marketplace and haven for ransomware attackers. The agency alleged that Mr Legkodymov was aware that his customers were involved in criminal activity and using aliases to hide their identities.
Wednesday 18 January 2023 20:51 , Graig Graziosi
Influencer Logan Paul announced Tuesday that he had developed a three-step plan for correcting course on his Crypto Zoo NFT game, which fellow YouTuber Coffeezilla alleged was a “scam” in a trio of investigative videos examining the project and the investors who lost money on the seemingly abandoned project.
Paul — who initially threatened to sue Coffeezilla but has since walked that back — said he and Crypto Zoo co-founder Jeff Levin would burn their tokens to ensure they did not have a financial stake in the NFT game project.
He also said he would personally invest 1,000 ETH — approximately $1.5m at its current market price — to refund Zoo token holders the initial mint price of 150 ETH — just over $225,000 at current price — so long as they burn their tokens.
That refund would not repay the investors in Zoo token who sold during the more than a year when the Crypto Zoo project sat dormant.
His third step is to finish the game as it was originally advertised by Paul more than a year ago.
Wednesday 18 January 2023 20:38 , Graig Graziosi
Former Reserve Bank of India Governor Raghuram Rajan told attendees at the Davos World Economic Forum on Wednesday that the notion that cryptocurrencies would thrive while fiat money crashes is “nonsense.”
“The idea that somehow cryptos are going to maintain value, while the fiat currencies collapse. That’s nonsense,” he said.
He later told Reuters’ Global Markets Forum that “fiat currencies have won out in terms of which is more credible.”
Mr Rajan said that the collapse of the cryptomarket in late 2022 has made space to examine the “true value” of blockchain and smart contract technologies.
Wednesday 18 January 2023 20:10 , Graig Graziosi
The crypto market took a dive early on Wednesday after the US Department of Justice announced “enforcement action” related to the cryptocurrency space.
While investors braced for the worst — as reflected in the market dive — the DOJ announced it had arrested the founder of Bitzlato, a Chinese crypto exchange run by a Russian national that dealth with an illicit darkweb market.
Many crypto enthusiasts had never heard of the exchange. Several mocked the DOJ in response.
Another user likened it to a small-town police department celebrating a minor drug bust.
Wednesday 18 January 2023 19:38 , Graig Graziosi
Brad Garlinghouse, the CEO of Ripple, which provides “crypto solutions for businesses,” told CNBC’s “Squawk Box” that he was optimistic a lawsuit involving the XRP cryptocurrency will be settled this year.
The US Securities and Exchange Commission sued Ripple in 2020, claiming the company illegally sold the XRP cryptocurrency to investors in 2012 without first registering it as a security.
“We’re optimistic that this will certainly be resolved in 2023, and maybe [in] the first half,” Mr Garlinghouse said. “So we’ll see how it plays out from here. But I feel very good about where we are relative to the law and the facts.”
He also slammed the SEC, calling the regulatory agency “embarassing.”
“The SEC’s behavior in some of [the lawsuit] has been embarrassing as a U.S. citizen,” he said in a seperate interview with CNBC. “Just some of the things that have been happening, like you’ve got to be kidding.”
Wednesday 18 January 2023 19:23 , Graig Graziosi
Crypto brokerage firm Genesis Global Capital may be preapring to file for bankruptcy, according to a report from Bloomberg.
Citing sources with knowledge of the situation, the outlet reports that the firm is in negotiations with creditors amid a liquidity crunch. Bloomberg previously reported that the company said it may have to file for bankruptcy if it can’t raise the funds to stay afloat.
Genesis suspended withdrawls from its platform in November, shortly after the start of crypto exchange FTX’s collapse.
Wednesday 18 January 2023 19:10 , Graig Graziosi
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.”
Wednesday 18 January 2023 18:48 , Graig Graziosi
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.
Wednesday 18 January 2023 18:25 , Graig Graziosi
Several financial leaders speaking at the Davos World Economic Forum made clear they did not trust cryptocurrencies, and insisted to attendees that traditional investment and banking institutions were still safe to use.
Senior Minister Tharman Shanmugaratnam of Singapore said that crypto assets were “slightly crazy,” eliciting a laugh from the audience, according to Iris Market IQ.
UBS Chairman Colm Kelleher said that regulators had faltered in their ability to police “non-bank” entities, which includes cryptocurrencies.
“Regulators have — with respect — taken their eyes off the ball in terms of the non-banking sector,” Mr Kelleher said, according to Reuters.
European Central Bank Governing Council member Francois Villeroy de Galhau agreed, saying “we should rush to some urgent non-bank regulation starting with cryptos.”
Wednesday 18 January 2023 18:15 , Graig Graziosi
The Department of Justice claimed that Bitzlato’s founder, Anatoly Legkodymov, was aware of the illicit nature of Hydra Market transactions, and knew that its users were using false identities while making transactions.
“Bitzlato’s customers routinely used the company’s customer service portal to request support for transactions with Hydra, which Bitzlato often provided, and admitted in chats with Bitzlato personnel that they were trading under assumed identities,” the DOJ said. “Moreover, Legkodymov and Bitzlato’s other managers were aware that Bitzlato’s accounts were rife with illicit activity and that many of its users were registered under others’ identities.”
According to internal chat logs obtained by the DOJ, Mr Legkodymov wrote to a colleague that their customers were “known to be crooks.” Officials at Bitzlato reportedly warned the founder that its users were “addicts who buy drugs [at Hydra]” and “drug traffickers.”
Wednesday 18 January 2023 18:00 , Graig Graziosi
Earlier today the crypto market cap touched $1 trillion for the first time since November, just before 2022’s mass sell-off and FTX collapse.
It’s unclear if the drop was the result of the DOJ’s announcement, or due to traders selling at the higher price, or both.
Despite the drop, Bitcoin has remained popular among investors, gaining 30 per cent this year.
Wednesday 18 January 2023 17:53 , Graig Graziosi
What was ‘Hydra Market,’ the darknet black market that was one of Bitzlato’s largest customers?
According to the Department of Justice, Hydra Market is “an anonymous, illicit online marketplace for narcotics, stolen financial information, fraudulent identification documents, and money laundering services that was the largest and longest running darknet market in the world.”
“Hydra Market users exchanged more than $700 million in cryptocurrency with Bitzlato, either directly or through intermediaries, until Hydra Market was shuttered by U.S. and German law enforcement in April 2022,” the DOJ wrote. “Bitzlato also received more than $15 million in ransomware proceeds.”
Wednesday 18 January 2023 17:15 , Graig Graziosi
The US Justice Department announced on Wednesday that Anatoly Legkodymov, the Russian operator of the China-based crypto exchange Bitzlato, has been arrested.
“As alleged, Bitzlato sold itself to criminals as a no-questions-asked cryptocurrency exchange, and reaped hundreds of millions of dollars’ worth of deposits as a result,” U.S. Attorney Breon Peace said in a DOJ release. “The defendant is now paying the price for the malign role that his company played in the cryptocurrency ecosystem.”
Wednesday 18 January 2023 16:59 , Graig Graziosi
The price of bitcoin has fallen by 5 per cent in the space of an hour after the US Department of Justice announced plans to introduce major international cryptocurrency enforcement action.
The world’s leading crypto dropped from $21,500 to around $20,500, reversing an upward trend that had seen its price rise by nearly a third since the start of the year.
Read more from The Independent’s Anthony Cuthbertson in his story below…
Bitcoin price plummets amid major DOJ crypto announcement
Wednesday 18 January 2023 16:55 , Graig Graziosi
Binance, the largest crypto exchange in the world, issued a strange tweet on Wednesday saying today “feels like a day to attempt a world record,” before asking followers to leave “salute” emojis in the comments.
The post was issued around the same time the DOJ announced that it planned to announce major crypto enforcement action during a press conference this afternoon.
Wednesday 18 January 2023 16:37 , Graig Graziosi
Dr Nouriel Roubini — who is sometimes called “Dr Doom” for his grim economic predictions — said that “literally 90 per cent of crypto is a scam” during the Davos World Economic Forum on Wednesday.
“FTX and SBF are not an exception — they’re a rule,” he said during a Yahoo Finance event.
He went on to predict a forthcoming bust.
“Literally 90% of crypto is a scam. A criminal activity,” he said. “A total real-bubble Ponzi scheme that is going bust.”
Wednesday 18 January 2023 16:20 , Graig Graziosi
Welcome to The Independent’s live coverage of the Department of Justice and the Treasury Department as they announce “major international cryptocurrency enforcement action” later today.
Stay with The Independent for the latest updates.
Wednesday 18 January 2023 21:16 , Graig Graziosi
Brad Garlinghouse, the CEO of Ripple, which provides “crypto solutions for businesses,” told CNBC’s “Squawk Box” that he was optimistic a lawsuit involving the XRP cryptocurrency will be settled this year.
The US Securities and Exchange Commission sued Ripple in 2020, claiming the company illegally sold the XRP cryptocurrency to investors in 2012 without first registering it as a security.
“We’re optimistic that this will certainly be resolved in 2023, and maybe [in] the first half,” Mr Garlinghouse said. “So we’ll see how it plays out from here. But I feel very good about where we are relative to the law and the facts.”
He also slammed the SEC, calling the regulatory agency “embarassing.”
“The SEC’s behavior in some of [the lawsuit] has been embarrassing as a U.S. citizen,” he said in a seperate interview with CNBC. “Just some of the things that have been happening, like you’ve got to be kidding.”
Wednesday 18 January 2023 17:27 , Graig Graziosi
The US Department of Justice has announced that it has dealt a “significant blow” to the crypto crime landscape after arresting a Russian national alleged to have founded a major criminal online platform.
Cryptocurrency exchange Bitzlato processed more than $700 million dollars’ worth of illicit funds, according to the DOJ, advertising its services to users who were “known to be crooks”.
Alleged founder Anatoly Legkodymov was arrested in Miami on Tuesday.Read more from The Independent’s Anthony Cuthbertson in his story below…
Huge crypto crime network shut down in ‘significant blow’ to hackers, DOJ announces
Wednesday 18 January 2023 17:19 , Graig Graziosi
Deputy Attorney General Lisa Monaco said that the DOJ would use “every tool” it had to punish criminals operating within the crypto space.
“The DOJ will use every tool that we have to attack the criminal use of the dark net and cryptocurrency,” she said. “And we’re taking steps to address the crisis of confidence in the crypto markets where ciriminals and fraudsters work.”
The top bid for the card is over $13,000 right now.
(Bloomberg) — Ukraine wants to expand steel exports on top of a crucial grain-export agreement as a way to support economy battered by Russia’s war, Economy Minister Yuliia Svyrydenko said in an interview. Most Read from BloombergNew Zealand Prime Minister Ardern Announces Shock ResignationCrypto Firm Genesis Is Preparing to File for BankruptcyAmazon Kicks Off Round of Job Cuts Affecting 18,000 PeopleMicrosoft Cuts Include Game Divisions Behind Halo, StarfieldUsain Bolt Lost $12 Million in Savi
‘For one reason or another, no one references it,’ A Man Called Otto actor said
US Treasury Secretary Janet Yellen will travel to China soon, following "constructive" discussions with her Chinese counterpart Wednesday, Washington said, as the two countries seek to boost ties and reduce tensions.But both Biden and his Chinese counterpart Xi Jinping have said they want to reduce tensions.
BJ's Wholesale Club, International Game Technology, Wyndham Hotels & Resorts, Nexstar Media Group and Bowlero are part of the Zacks top Analyst Blog.
How far off is Gear4music (Holdings) plc ( LON:G4M ) from its intrinsic value? Using the most recent financial data…
U.N. Secretary-General António Guterres accused the fossil fuel industry of participating in a "big lie" to cover up oil's connection to climate change.
N Brown Group plc ( LON:BWNG ) shareholders (or potential shareholders) will be happy to see that the Non-Executive…
The S&P 500 and the Dow lost almost 2% on Wednesday, their biggest daily drops in more than a month, after weak economic data fueled recession worries while hawkish comments from Federal Reserve officials soured investor moods further. Before the market opened, U.S. economic data showed retail sales and producer prices declined more than expected in December, while production at U.S. factories fell more than expected and November output was weaker than thought. "It seems that investors are finally coming to the conclusion that getting inflation under control is not a free lunch and that all the tightening the Fed has had to do to get inflation moving in the right direction, comes with economic costs," said Michael Reynolds, vice president of investment strategy at Glenmede.
If you want to know who really controls GHL Systems Berhad ( KLSE:GHLSYS ), then you'll have to look at the makeup of…
(Bloomberg) — Turkey will likely refrain from interest-rate cuts for a second month, leaving the central bank reliant on the rest of its unconventional toolkit to manage loan growth and widen the use of the lira.Most Read from BloombergNew Zealand Prime Minister Ardern Announces Shock ResignationCrypto Firm Genesis Is Preparing to File for BankruptcyAmazon Kicks Off Round of Job Cuts Affecting 18,000 PeopleMicrosoft Cuts Include Game Divisions Behind Halo, StarfieldUsain Bolt Lost $12 Million i
Every investor in Orica Limited ( ASX:ORI ) should be aware of the most powerful shareholder groups. We can see that…
Institutional clients will be able to trade on the BitMart exchange while their digital assets remain safeguarded in Copper’s custody.
Depositing cash in your bank account is a normal activity for many people. Whether you make cash tips at your job or receive birthday money from your grandma, putting your cash in a bank account is a great way to keep it safe. When banks receive cash deposits of more than $10,000, they must report it to the IRS.
Some Bank of America members are in a frenzy due to allegedly missing funds in their accounts.
Here's the memo that Microsoft Corp. CEO Satya Nadella posted to explain why the software giant is cutting 10,000 jobs.
Is there more pain ahead?
Stocks are in for a shakeup, and investors who aren't paying attention risk getting bitten in a 'shark attack', Charles Schwab's Jeffrey Kleintop said.
Crypto as a whole is still relatively new, and downturns — even severe ones — are not necessarily uncommon. It's critical, though, to choose the right investments. Many cryptocurrencies may not survive this slump, and investing in the wrong places could be costly.
Two companies linked to the Belfer family had a combined stake in FTX Group that was valued at $34.5 million last year, the Financial Times said.
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