SBF denies stealing FTX assets, SEC charges Gemini and Genesis, and more: Hodler’s Digest: Jan. 8-14

This Week’s Top Stories

Sam Bankman-Fried: ‘I don’t steal funds, and I certainly don’t stash billions away.’

In the “Pre-mortem summary” of the FTX bankruptcy, Sam Bankman-Fried refuted the allegations of improper use of customer funds stored in the crypto exchange, which is responsible for the company’s dramatic fall to the market crash of 2022 and the PR campaign of Binance CEO Changpeng Zhao. to FTX. In Bankman-Fried’s view, running a bank turns the problem of illiquidity into insolvency. Among the latest developments in the bankruptcy process, a bipartisan group of United States senators criticized one of the law firms involved in the case on the grounds of a conflict of interest, and asked the US Bankruptcy Court for the District of Delaware to appoint an independent examiner to FTX’s activities. Also in the week’s headlines, FTX attorney Andy Dietderich said the company has returned $5 billion in liquid cash and cryptocurrencies.

Gemini and Genesis were charged by the SEC with selling unregistered securities

Crypto companies Genesis Global Capital and Gemini have been charged by the US Securities and Exchange Commission (SEC) with offering unregistered securities through Gemini’s Earn program. Genesis and Gemini collaborated on the product in 2020, offering customers the opportunity to borrow crypto with the promise of repayment with interest. The SEC states that the Gemini Earn program is an offer and sale of securities, and must be registered with the commission. Tyler Winklevoss, co-founder of Gemini, said the SEC’s actions are “totally counterproductive,” and noted that Gemini has been discussing the Get program with the regulator “for more than 17 months.”.

DCG has more than $3B in debt, considering the sale of its $500M VC portfolio

It’s been a tough week for Genesis Global Trading and its parent company, Digital Currency Group (DCG), as reports state that Genesis is allegedly over $3 billion in debt. To offset the shortfall, DCG, which also owns Grayscale Investments, is seeking to sell part of its venture capital holdings in more than 200 crypto-related projects, including crypto exchanges, banks and custodians in at least 35 countries, for a total of $500 million. million. .

El Salvador passes landmark crypto bill, paving the way for Bitcoin-backed bonds

On January 11, El Salvador passed a landmark Digital Asset Issuance law that established the legal framework for issuing Bitcoin-backed bonds to pay off the country’s debt and finance the construction of a so-called “Bitcoin City.” The bond will raise $1 billion for the country, half of which will be used to build a special economic zone. The law also creates a regulatory body and creates a legal framework for all digital assets in the country.

Abu Dhabi-based Venom Foundation launches $1B fund for Web3 and blockchain

Venom Foundation, an Abu Dhabi-based blockchain platform, and Iceberg Capital announced a new partnership that will provide $1 billion to Web3 and blockchain companies, including decentralized applications focused on payments, asset management, decentralized finance and GameFi products and services. The investment fund will attract startups and tech companies to use blockchain solutions based on Venom’s proof-of-stake.

Winners and Losers

At the end of the week, Bitcoin (BTC) that’s it $19,297Ether (ETH) at $1,418 and XRP at $0.37. The total market capitalization is at $916.5 billion, according to CoinMarketCap.

Among the 100 largest cryptocurrencies, the top three altcoin gainers of the week were Gala (GALA) at 125.9%, Aptos (APT) at 77.52% and Optimism (OP) at 45.28%.

The three biggest altcoins of the week were Fei USD (FEI) at -2.53%, Nexo (Next) at -2.29% and ONE but LEO (LEO) at 0.07%.

For more information on crypto prices, be sure to read Cointelegraph’s market analysis.

Most Memorable Quotes

“There’s still some overhang — DCG and Genesis and Gemini — that will play out in the next quarter. It’s not going to be that big.

Mike NovogratzCEO of Galaxy Digital Holdings

“History tells us that there is not much room for micro-currencies, meaning, you know, we have the US dollar and Europe has the euro and so on.”

Gary Genslerchairman of the US Securities and Exchange Commission

“As long as there is interest in the crypto market, the number of hackers will not decrease.”

Tommy Dengmanaging director of Beosin

“People are talking about it [Bitcoin] volatility matters, but that’s nothing if you live in a place where your money can lose half its value in a year.

MegasleyNigeria’s first Lightning node runner

“There is no way forward as long as Barry Silbert remains CEO of DCG.”

Cameron Winklevossco-founder of Gemini

“This is a political act and not a financial act. It’s like growing a mustache in November to fight prostate cancer. I put this salary in Bitcoin in my cold wallet every month and I haven’t touched it.

Christophe De Beukelaera member of the Belgian parliament

Sunday Predictions

Bitcoin price wants to retest 2017 all-time high near $20K

Bitcoin prices have jumped in recent days and are sitting near $19,000 by the end of the week, according to data from Cointelegraph Markets Pro and TradingView.

On-chain analytics Resource Indicator predicts a retest of the $20,000 mark. “It seems that BTC is preparing to retest the resistance at the 2017 Top,” wrote on Twitter.

According to the analytics company, “whether we see a bonafide breakout or a fakeout remains to be seen. Time for patience and discipline.”

FUD from Sunday

The Nexo office reportedly attacked the police in Bulgaria

Bulgarian regulators are stepping up pressure on cryptocurrency lender Nexo, after a group of prosecutors, investigators and foreign agents searched the company’s offices in Bulgaria’s capital Sofia on January 12. This operation started a few months ago, aiming at a large scale. financial crime plan allegedly involving money laundering and violation of international sanctions against Russia. Nexo has complained about the actions of the law enforcement authorities and is preparing to file a lawsuit against the authorities to seek compensation for damages caused by the sudden police interference.

Scam alert: MetaMask warns crypto users about address poisoning

Digital wallet provider MetaMask warns users about “scam poisoning addresses”, where attackers “poison” transaction history. The attack does not allow hackers to access user wallets, but those who are accustomed to copying wallet addresses from their transaction history may send funds to copycat addresses.

Crypto.com CEO announces 20% staff cut, ‘no account’ for FTX collapse

A new wave of staff layoffs has been announced by crypto exchange Crypto.com, which will reduce its global workforce by 20% following “recent industry events.” Also struggling to survive the bear market, Coinbase is closing most of its Japanese operations as part of a restructuring plan that aims to cut 20% of the exchange’s staff.

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