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

High Tales This Week

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

In a “pre-mortem overview” of FTX’s chapter, Sam Bankman-Fried denied allegations of improper use of buyer funds saved with the crypto alternate, attributing duty for the corporate’s dramatic fall to the market crash of 2022 and Binance CEO Changpeng Zhao’s PR marketing campaign in opposition to FTX. In Bankman-Fried’s view, a run on the financial institution turned illiquidity points into insolvency. Among the many newest developments within the chapter proceedings, a bipartisan group of United States senators criticized one of many regulation companies concerned within the case on the grounds of a battle of curiosity, and referred to as on the U.S. Chapter Courtroom for the District of Delaware to nominate an impartial examiner into FTX’s actions. Additionally within the week’s headlines, FTX legal professional Andy Dietderich stated the corporate has recovered $5 billion in money and liquid cryptocurrencies.

Gemini and Genesis charged by SEC with promoting unregistered securities

Crypto companies Genesis International Capital and Gemini have been charged by the U. S. Securities and Change Fee (SEC) with providing unregistered securities by Gemini’s Earn program. Genesis and Gemini partnered on the product in 2020, providing prospects the prospect to mortgage crypto with the promise of later reimbursement with curiosity. The SEC acknowledged that the Gemini Earn program constitutes a proposal and sale of securities, and will have been registered with the fee. Tyler Winklevoss, co-founder of Gemini, stated the SEC’s motion was “completely counterproductive,” and famous that Gemini had been discussing the Earn program with the regulator “for greater than 17 months.”.

DCG owes collectors over $3B, contemplating $500M VC portfolio sale

It has been a troublesome week for Genesis International Buying and selling and its father or mother firm, Digital Forex Group (DCG), as stories revealed that Genesis allegedly owes its collectors greater than $3 billion. To offset the shortfall, DCG, which additionally owns Grayscale Investments, seeks to promote a part of its enterprise capital holdings with greater than 200 crypto-related tasks, together with crypto exchanges, banks and custodians in at the very least 35 nations, totaling round $500 million in valuation.

El Salvador passes landmark crypto invoice, paving method for Bitcoin-backed bonds

On Jan. 11, El Salvador handed the landmark Digital Belongings Issuance regulation that establishes the authorized framework to situation Bitcoin-backed bonds to pay down sovereign debt and fund the development of a so-called “Bitcoin Metropolis.” The bonds are anticipated to boost $1 billion for the nation, half of which will likely be used to construct the particular financial zone. The laws additionally creates a regulatory physique and establishes a authorized framework for all digital property within the nation.

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

Venom Basis, an Abu Dhabi-based blockchain platform, and Iceberg Capital introduced a brand new partnership that can allocate $1 billion to Web3 and blockchain corporations, together with decentralized functions centered on funds, asset administration, decentralized finance and GameFi services. The funding fund will look to draw startups and know-how companies to make use of Venom’s proof-of-stake-based blockchain resolution.

Winners and Losers

On the finish of the week, Bitcoin (BTC) is at $19,297, Ether (ETH) at $1,418 and XRP at $0.37. The whole market cap is at $916.5 billion, based on CoinMarketCap.

Among the many greatest 100 cryptocurrencies, the highest three altcoin gainers of the week are Gala (GALA) at 125.9%, Aptos (APT) at 77.52% and Optimism (OP) at 45.28%.

The highest three altcoin losers of the week are Fei USD (FEI) at -2.53%, Nexo (NEXO) at -2.29% and UNUS SED LEO (LEO) at 0.07%.

For more information on crypto costs, be sure to learn Cointelegraph’s market evaluation.

Most Memorable Quotations

“There are nonetheless some overhangs — DCG and Genesis and Gemini — that can play out within the subsequent quarter. That’s not going to be nice.”

Mike Novogratz, CEO of Galaxy Digital Holdings

“Historical past tells us there’s not a lot room for micro currencies, that means, you recognize, we now have the U.S. greenback and Europe has the euro and the like.”

Gary Gensler, chair of the U.S. Securities and Change Fee

“So long as there may be curiosity within the crypto market, the variety of hackers won’t lower.”

Tommy Deng, managing director of Beosin

“Folks speak concerning the [Bitcoin] drawback of volatility, however that is nothing once you stay in a spot the place your cash may simply lose half its worth in a 12 months.”

Megasley, Nigeria’s first Lightning node runner

“There isn’t any path ahead so long as Barry Silbert stays CEO of DCG.”

Cameron Winklevoss, co-founder of Gemini

“It was a political act and never a monetary gesture. Like those that develop mustaches in November to struggle prostate most cancers. I put this wage in Bitcoin on a chilly pockets each month and I haven’t touched it.”

Christophe De Beukelaer, Belgian lawmaker

Prediction of the Week 

Bitcoin value needs to retest 2017 all-time excessive close to $20K

The value of Bitcoin has jumped in current days and sits close to $19,000 on the finish of this week, based on knowledge from Cointelegraph Markets Professional and TradingView.

On-chain analytics useful resource Materials Indicators predicts there may very well be a retest of the $20,000 mark. “Looks like BTC is establishing for a retest of resistance on the 2017 High,” it wrote on Twitter.

In response to the analytics agency, “whether or not we see a bonafide breakout or fakeout stays to be seen. Time for persistence and self-discipline.”

FUD of the Week 

Nexo places of work reportedly raided by police in Bulgaria

Bulgarian regulators are rising stress on cryptocurrency lender Nexo, after a bunch of prosecutors, investigators and international brokers searched the corporate’s places of work within the Bulgarian capital metropolis of Sofia on Jan. 12. The operation was initiated a couple of months in the past, focusing on a large-scale monetary legal scheme allegedly involving cash laundering and violations of worldwide sanctions in opposition to Russia. Nexo has complained concerning the actions of the regulation enforcement authorities and is making ready to file a lawsuit in opposition to authorities to hunt compensation for damages attributable to the abrupt police interruption.

Rip-off alert: MetaMask warns crypto customers about deal with poisoning

Digital pockets supplier MetaMask warned customers of an “deal with poisoning rip-off,” the place attackers “poison” transaction histories. The assault doesn’t permit hackers to entry person’s wallets, however those that have change into ordinary about copying their pockets addresses from transaction histories may probably ship funds to copycat addresses.

Crypto.​com CEO broadcasts 20% workers minimize, ‘didn’t account’ for FTX collapse

A brand new wave of workers layoffs has been introduced by crypto alternate Crypto.com, which can scale back its international workforce by 20% following “current business occasions.” Additionally preventing to outlive the bear market, Coinbase is closing most of its Japanese operations as a part of a restructuring plan that goals to cut back 20% of the alternate workers..

Finest Cointelegraph Options

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Novelty token designs may entice some temporary curiosity, however tasks must study the rules of sustainable tokenomics..

Your information to crypto in Toronto: Crypto Metropolis

The “residence” of Ethereum and the house city of Vitalik Buterin, Toronto embraced digital property prior to most and is residence to extra crypto tasks than wherever else in Canada.

Crypto layoffs mount as exchanges proceed to be ravaged by the prevailing bear market

Many fashionable cryptocurrency buying and selling platforms, together with Kraken and Coinbase, have not too long ago initiated a contemporary spherical of firings.

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Cointelegraph Journal writers and reporters contributed to this text.