World Economic Forum’s Crypto Outlook
Cryptocurrency firm Genesis Global Capital plans to file for bankruptcy as early as this week, Bloomberg reported today.
The bankruptcy filing has been anticipated since the fall of cryptocurrency exchange FTX in November.
Meanwhile, the US Department of Justice has announced that Anatoly Legkodimov, the Russian operator of China-based crypto exchange Bitzlato, has been arrested. Bitzlato was a crypto exchange that allegedly worked with the dark web black market Hydra Market, which engaged in illegal trading and served as a haven for ransomware attackers, according to the DOJ.
The US Department of Justice 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 issue its own statement.
The announcement comes as former FTX crypto exchange CEO Sam Bankman-Fried faces charges of wire fraud, securities fraud and conspiracy. The DOJ emphasized that criminals who use the crypto space for fraud and other criminal activity should be aware that the agency will use “every tool” to disrupt their activities.
Mr Bankman-Fried’s company – long considered one of the biggest crypto exchanges along with Binance – filed for bankruptcy after it allegedly used and lost customer funds as investment capital.
Indian finance leader tells Davos attendees idea crypto will thrive while fiat falters ‘nonsense’
Former Reserve Bank of India governor Raghuram Rajan told attendees at the World Economic Forum in Davos on Wednesday that the idea that cryptocurrencies will flourish while fiat money collapses is “nonsense.”
“The idea that somehow cryptocurrencies will hold value while fiat currencies collapse. This is nonsense,” he said.
Later he said ReutersGlobal Markets Forum that “fiat currencies have won in terms of which one is more reliable.”
Mr Rajan said the crypto market collapse at the end of 2022 gave room to explore the “true value” of blockchain and smart contract technologies.
Greig GraziosiJanuary 19, 2023 11:00 a.m
Crypto users furious with DOJ over Bitzlato announcement
The crypto market took a dive early Wednesday after the US Department of Justice announced “enforcement actions” related to the cryptocurrency space.
As investors prepare for the worst – as evidenced by the market crash – the Department of Justice announced that it has arrested the founder of Bitzlato, a Russian-run Chinese crypto exchange that operates an illegal dark web market.
Many crypto enthusiasts have never heard of the exchange. Several mocked the DOJ in response.
Another user likened it to a small town police department celebrating a small drug bust.
Greig GraziosiJanuary 19, 2023 10:00 a.m
Genesis Global Capital will file for bankruptcy this week, sources said
Crypto brokerage firm Genesis Global Capital may be preparing to file for bankruptcy, according to a report from Bloomberg.
Citing sources familiar with the situation, the publication reports that the company is in talks with creditors amid a liquidity crisis. Bloomberg the company was previously reported to have said it may have to file for bankruptcy if it can’t raise funds to stay afloat.
Genesis stopped withdrawals from its platform in November, shortly after the collapse of the crypto exchange FTX.
Greig Graziosi19 January 2023 08:00
Crypto companies are reducing the visibility of Davos after a year of losses and scandals
In recent years, crypto companies have dominated the walkway at the World Economic Forum in Davos, but this year they seem to have reduced their visibility. reports CNBC.
With the exception of a single bright orange sports car with a crypto ad, crypto company ads have been much less noticeable this year.
An NFT store that sold digital tokens alongside images closed this year after asset prices fell significantly in 2022.
Cliff Sarkin, head of strategic communications at Casper Labs, told the outlet that the remaining crypto businesses at Davos are the “essential projects” and the “real deals.”
Greig GraziosiJanuary 19, 2023 07:00
The FBI says it will “relentlessly” pursue crypto criminals
FBI Assistant Director Brian Turner said the law enforcement agency will “relentlessly pursue” criminals operating in the crypto space following the arrest of Bitzlato crypto exchange founder Anatoly Legkodimov.
“The FBI will continue to pursue actors who attempt to hide 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 tirelessly to disrupt and disrupt these types of criminal enterprises.” Today’s arrest should serve as a reminder that the FBI will impose risk and consequences on those who engage in these activities.
Mr. Legkodimov, a Russian living in China, was arrested in Miami on Wednesday.
Greig GraziosiJanuary 19, 2023 06:00
Financial leaders at the World Economic Forum in Davos criticize crypto, insisting that traditional institutions are safe
Several financial leaders, speaking at the World Economic Forum in Davos, made it clear that they do not trust cryptocurrencies and insisted to attendees that traditional investment and banking institutions are still safe to use.
Singapore’s senior minister Tharman Shanmugaratnam said crypto assets were “slightly crazy,” prompting laughter from the audience, according to Iris Market IQ.
UBS chairman Colm Kelleher said regulators have wavered in their ability to police “non-bank” entities, which includes cryptocurrencies.
“Regulators have – respectfully – taken their eye off the ball in terms of the non-bank sector,” Mr Kelleher said, according to Reuters.
European Central Bank Governing Council member Francois Villeroy de Gallo agreed, saying that “we need to rush some urgent non-banking regulations, starting with crypto.”
Greig GraziosiJanuary 19, 2023 4:59 am
DOJ says Bitzlato head knew Hydra transactions were illegal, clients ‘known as crooks’
The Justice Department alleges that Bitzlato’s founder, Anatoly Legkodimov, was aware of the illegal nature of Hydra Market’s transactions and knew that its users were using false identities while making transactions.
“Bitzlato customers routinely used the company’s customer service portal to request support for transactions with Hydra, which Bitzlato frequently provided, and admitted in chats with Bitzlato personnel that they were trading under assumed identities,” the DOJ said. “Furthermore, Legkodimov and other Bitzlato managers knew that Bitzlato’s accounts were filled with illegal activity and that many of its users were registered under the identities of others.”
According to internal chats obtained by the Ministry of Justice, Mr Legkodimov wrote to a colleague that their clients were “known as crooks”. Bitzlato officials reportedly warned the founder that its users were “addicts who buy drugs [at Hydra]” and “drug traffickers”.
Greig GraziosiJanuary 19, 2023 04:00 AM
ICYMI: Crypto market cap briefly hit $1 trillion before taking a dive
Earlier today, the crypto market cap hit $1 trillion for the first time since November, just ahead of the massive 2022 selloff and FTX crash.
It is not clear whether the drop was a result of the DOJ announcement, or due to traders selling at a higher price, or both.
Despite the decline, Bitcoin remains popular with investors, gaining 30% this year.
Greig GraziosiJanuary 19, 2023 03:00 AM
What was “Hydra Market”?
What was “Hydra Market”, the darknet black market that was one of Bitzlato’s biggest customers?
According to the Department of Justice, Hydra Market was “an anonymous, illegal online marketplace for drugs, stolen financial information, fake IDs, and money laundering services that was the largest and longest-running darknet marketplace in the world.”
“Hydra Market users exchanged more than $700 million in cryptocurrency with Bitzlato, either directly or through intermediaries, until Hydra Market was shut down by US and German law enforcement in April 2022,” the DOJ wrote. “Bitzlato also received more than $15 million in ransomware revenue.”
Greig GraziosiJanuary 19, 2023 02:00 AM
ICYMI: Bitcoin Price Crashes Amid Major Crypto DOJ Announcement
The world’s leading cryptocurrency fell from $21,500 to around $20,500, reversing an uptrend that saw its price rise by nearly a third since the start of the year.
Read more from The Independent. Anthony Cuthbertson in his story below…
Greig GraziosiJanuary 19, 2023 1:00 a.m
#Genesis #Bankruptcy #Filings #Latest #Crypto #Lender #File #Bankruptcy #Major #DoJ #Move