Silvergate Stocks Tumble by 30%, Another Bankruptcy Incoming?
After hours, the stock price of Silvergate Bank fell by more than 30% as a result of the bank’s announcement of a delay in releasing its annual 10-K report. This new revelation adds to the long list of incidents that have shaken the cryptocurrency market in 2022 and beyond.
The Securities and Exchange Commission (SEC) mandates a 10-K report, which provides a thorough review of a company’s financial situation and commercial operations. The cryptocurrency bank announced that it would require an extra two weeks to finish the report for the fiscal year 2022.
At Wednesday’s closing bell, Silvergate’s stock (SI) was trading at $13.53. But, following the announcement, the price fell as much as 31.7% in after-hours trading, tumbling well below $10.
According to Silvergate, “these additional losses will negatively impact the regulatory capital ratios of the Company and the Company’s wholly owned subsidiary, Silvergate Bank […] and could result in the Company and the Bank being less than well-capitalized.”
In the final quarter of 2022, Silvergate announced a $1 billion net loss and a $14 billion fall in customer deposits, blaming the “planned reduction in digital asset banking deposits” and general turmoil in the market. Following the FTX collapse, the bank’s deposits were shaken, leading it to turn to the Federal Home Loan Bank (FHLB) for a $4.3 billion loan in January.
The bank also added that it is “currently in the process of re-evaluating its businesses and strategies in light of the business and regulatory challenges it currently faces.”
Silvergate also announced that it is now going through additional steps and submitting papers to complete certain audits that its independent certified public accounting firm has requested.
They added, “The Corporation is assessing the impact that these subsequently occurring events have on its ability to continue as a going concern for the twelve months subsequent to the publishing of its financial statements.”
Genesis Reveals Strategy to Repay Creditors After Declaring Bankruptcy
Bankrupt cryptocurrency broker Genesis has filed plans detailing how it will repay its creditors. According to a recent filing, the parent company of Genesis, Digital Currency Group (DCG), has agreed to transfer its equity in Genesis Global Trading to Genesis Global Holdco. The eventual goal is to sell both companies and repay clients who were impacted by the bankruptcy.
Genesis served as the primary lending partner of New York-based cryptocurrency exchange, Gemini, but went bankrupt and owes users of the high-yield savings product, Gemini Earn, $900 million. The announcement of the agreement between Gemini, Genesis Global Capital, and Digital Currency Group was made earlier this week by Gemini co-founder Cameron Winklevoss on Twitter.
The interim CEO of Genesis, Derar Islim, stated that the company is moving closer to resolving its lending business and maximizing value for all clients and stakeholders. The agreement in principle was reached with two groups of ad hoc creditors, including Gemini Trust Co. and DCG.
Previously, users of Gemini were able to earn cash through their cryptocurrencies via Genesis, but the company had to halt withdrawals in November after digital asset exchange FTX went bankrupt. Genesis had approximately $175 million in exposure to FTX and unsuccessfully sought a $1 billion bailout from investors before filing for bankruptcy.
Gemini will contribute $100 million
As part of the plan, Cameron Winklevoss announced that Gemini Trust Co. will contribute up to $100 million more for Earn users. Gemini had partnered with Genesis to offer the Earn yield product until November 16, when Genesis announced it was halting its lending business, affecting the access of Gemini Earn customers to their funds.
The restructuring and sale of the crypto trading business and lending arm of Genesis are expected to maximize recoveries and provide stability to its customers and partners. This recent filing provides hope to the affected parties that a resolution to the issue is within reach. The outcome of the plan remains to be seen, but it is a positive step towards resolving the financial difficulties of Genesis and repaying its creditors.
Bankruptcy Proceedings Come At A High Cost For FTX, Law Firm To Earn Millions
The FTX bankruptcy case has proved to be a lucrative opportunity for Sullivan & Cromwell, a well-known law firm, as it is expected to earn millions in fees for handling the fallen crypto empire’s finances.
According to a recent court filing, Sullivan & Cromwell has already billed them $7.5 million for just 19 days of work on the case. Despite concerns raised by US lawmakers, the executive branch, and FTX founder Sam Bankman-Fried about the firm’s previous work for the company and the appointment of former partner Ryne Miller as FTX General Counsel, the new CEO of FTX, John J. Ray III, has defended the firm’s appointment, calling it a leading law firm in relevant areas.
Sullivan & Cromwell law firm set to reap millions
The filing covers fees and expenses from November 12th to November 30th and reports that over 6,500 hours were worked by 32 partners, 85 associates, and 34 non-legal staff. The hourly rates range as high as $2,165 and the company said it is seeking only 80% of the total $9.5 million. This drain on the estate of the corporate group as it seeks to reorganize and restore funds to creditors will be significant.
Bankruptcy judge John Dorsey will make a crucial decision today regarding the appointment of an independent examiner for the case, which FTX has warned could cost up to $100 million and duplicate Sullivan & Cromwell’s work. However, a spokesperson for Sullivan & Cromwell was not available for comment.
A Bankruptcy Filing Could Be Resource-Exhaustive Too!
The FTX bankruptcy case has attracted widespread attention due to the high costs associated with the case, which are expected to climb more with over 150 people working on it. Big bankruptcy cases like this can generate a lot of work and help pad profits for law firms.
This case serves as a reminder of the high costs associated with bankruptcy proceedings, particularly for large corporations. While the legal fees can be a significant burden for the corporate group, it is important for the court to appoint a reputable and reliable law firm to ensure a fair outcome for all parties involved.
Genesis Bankruptcy Restructuring Advances with DCG’s Plan to Sell Trading Division
Digital Currency Group (DCG) and its subsidiary Genesis have reached an agreement with a key group of creditors over the restructuring of its crypto trading business and lending arm, which filed for bankruptcy protection last month. Genesis Global Trading will be contributed to Genesis Global Holdco on the effective date, with both entities being marketed and sold as a package to maximize recoveries to the estate.
The debt owed by DCG to Genesis Holdco will also be restructured under the new terms, with DCG issuing a second lien-term loan facility due in June 2024. The loan will come in two tranches, with one being denominated in US dollars and paying 11.5% interest and the other in bitcoin, paying 5% interest.
DCG has also agreed to issue a class of convertible preferred stock, details of which are still being worked out. The company will exchange its existing $1.1 billion promissory note, which is currently due in 2032, for this convertible stock.
Meanwhile, Gemini Trust Co. co-founder Cameron Winklevoss announced that the company will contribute “up to $100 million more for Earn users as part of the plan.” Gemini had partnered with Genesis to offer the Earn yield product until November 16, when Genesis announced it was halting its lending business and affecting Gemini Earn customers’ access to their funds.
The agreement in principle was reached with two groups of ad hoc creditors, including Gemini Trust Co. and DCG. The restructuring and sale of the crypto trading business and lending arm of Genesis are expected to help the company maximize recoveries and provide stability to its customers and partners.
The finer details of the agreement are still being worked out, but the restructuring is expected to provide a much-needed boost to the crypto lending industry, which has been facing challenges due to the volatility of the crypto market.
FTX Bankruptcy: Crypto Exchange Demands Millions In Political Donations Be Returned
FTX, the bankrupt crypto exchange, has asked for its money back from political figures and committees that received donations from its founder, Sam Bankman-Fried, and others in his regime. The company’s new CEO, John John Jay Ray III, who was installed after the exchange’s collapse in November, has previously asked for the return of donations linked to FTX. The company has taken a tougher approach, asking for “contributions or other payments” by the end of February and warning that it will legally pursue funds not repaid.
FTX filed for bankruptcy last year after a steep drop in the price of its exchange token FTT. This resulted in a run on the exchange, revealing that it did not have sufficient reserves of customer assets. Bankman-Fried, who was later arrested and charged with several financial crimes, has been accused of misappropriating billions of dollars worth of customer funds for his trading firm Alameda Research, private real estate purchases, and political campaign donations.
In the 2020 election cycle, Bankman-Fried was one of the largest donors to the Democratic party. However, in an interview with influencer Tiffany Fong, he revealed that he also donated to Republican candidates, although he kept these donations discreet as he believed that journalists would “freak the fuck out” if he contributed to Republicans.
According to a public spreadsheet maintained by OpenSecrets.org, Bankman-Fried, former FTX co-CEO Ryan Salame, and former FTX head of engineering, Nishad Singh has donated over $84 million to political candidates and organizations.
Some politicians, such as former Representative Beto O’Rourke, have returned funds they received from Bankman-Fried, while others, including Senators Dick Durbin and Kirsten Gillibrand, have pledged to donate to charities in amounts that match the funds they received from FTX.
The extent of the benefits received by political candidates and groups from FTX and its affiliates may not become clear until after the newly established deadline, depending on the actions taken by the bankrupt exchange. Bankman-Fried has pleaded not guilty to the charges and his trial is set for October.
The Future of $600 Million Robinhood Shares in Jeopardy as Emergent Fidelity Files for Bankruptcy
Emergent Fidelity Technologies, a firm co-founded by FTX founder Sam Bankman-Fried and former executive Gary Wang has recently made headlines with its filing for Chapter 11 bankruptcy protection. This move has sparked questions about the future of the company and its valuable assets, particularly its 56 million shares of Robinhood Markets (HOOD) stock.
The Value of Robinhood Shares
With a current value of over $600 million, these Robinhood shares have quickly become a highly sought-after asset for various companies, including creditors of FTX. The shares have also been pledged as collateral to bankrupt crypto lender BlockFi, which placed its own claim on them last year.
Despite Bankman-Fried’s argument that he should retain control of the shares, federal officials moved to seize them in January. This has sparked a heated debate over who should have control over these valuable assets.
Ownership Structure of Emergent Fidelity
Bankman-Fried is the owner of 90% of Emergent Fidelity, while Wang holds the remaining 10%. However, with the bankruptcy filing, it is unclear what the future holds for the company and its assets.
The exact details of Emergent Fidelity’s bankruptcy filing could not be immediately obtained. It remains uncertain what debts the company is claiming at this time. The bank proceedings will start in the coming weeks and everyone is waiting to find out what the future holds for the creditors
Voyager Bankruptcy Leads to Massive 270 Billion Shiba Inu Transfer! SHIB Price Drop On Horizon?
The bankrupt cryptocurrency lender Voyager Digital has transferred 270 billion SHIB to Coinbase, Kraken, and BinanceUS over the course of three transactions totaling 90 billion each.
Today, crypto on-chain analytics firm Lookonchain made the announcement on Twitter, where they also shared a link to the transaction details. According to a snapshot that was supplied, the initial transfer was sent to what Lookonchain identified as the deposit address for BinanceUS.
The now-defunct cryptocurrency lender is said to be in possession of 6.8 trillion SHIB, as reported by Lookonchain and corroborated by the data on the Voyager address.
This move has aroused suspicions in the cryptocurrency world, with some believing that the bankrupt crypto lender is trying to cash in on the recent market boom in order to repay creditors, but Voyager has yet to comment on the matter. In addition to this, it has aroused worries about an impending sale of Shiba Inu, which has the potential to have a detrimental influence on the price of the breed.
How Shiba Inu is Doing?
As for SHIB, while continuing its ascent, the value of the meme token is being bolstered by a significant amount of support from the community. In the last thirty days, the price of SHIB has increased by more than 47 percent. Nevertheless, the recent revival of the cryptocurrency market was the primary driver of this spike. It is currently worth $0.00001201.
In conclusion, the most probable scenario for the Shiba Inu price forecast for the month of February is a bullish breakout, followed by a climb that is headed toward $0.000014. This bullish price projection, on the other hand, would be rendered worthless if the price closed below the support line of the triangle, which may set off a downward trend below $0.0000103.
Is Grayscale Next In The Bankruptcy List ?
It was the demise of the FTX platform led by Sam Bankman-Fried that pushed Geneisi into bankruptcy. After the collapse of the FTX platform Genesis Global ran into liquidity issues arising from the current crisis and also due to the earlier collapse of Terra (LUNA).
As one of the largest crypto lenders, Genesis had frozen customer redemptions on November 16, 2022, shortly after FTX filed for bankruptcy. Furthermore, on January 12, 2023, Genesis and the Gemini exchange were charged by the Securities and Exchange Commission (SEC) with illegally selling securities to investors.
Grayscale To File For Bankruptcy ?
However, on January 19, 2023, Genesis was forced to file bankruptcy. Also as per reports, Genesis Global Capital has stated that it has over $150 million in cash that will be used as liquidity to support its current operations and restructuring process.
Now, these events have raised a concern of negative impact on Grayscale as both Grayscale and Genesis are owned by Digital Currency Group.
It’s a known fact that Grayscale owns one of the world’s leading Bitcoin funds, GBTC. The GBTC funds are the funds through which traditional investors enter crypto trading without buying Bitcoin directly. However, after too many negative events in 2022, the industry witnessed massive sale GBTC shares as Bitcoin was in loss. Hence, this massive sale of GBTC shares has now brought Grayscale under spotlight.
In particular, in November 2022 when Grayscale announced that the firm would not move ahead with proof of reserves in the crypto market, the market participants grew anxious. Furthermore, Digital Currency Group (DCG) holds a massive stake in GBTC and this might see a clash within the company.
Nevertheless, now it’s just a matter of time which will reveal the actual impact of Genesis bankruptcy on Grayscale. What’s more important is investors conducting their own research before making any investments.
Will Genesis Bankruptcy Spell Disaster for Grayscale’s GBTC and DCG?
The cryptocurrency lending platform, Genesis Global Capital, which is owned and operated by Digital Currency Group, has filed for bankruptcy.
This raises concerns about the potential impact on other companies and services provided by the parent company, as is commonly seen in such circumstances.
What Happens to GBTC?
One of the businesses in question is Grayscale Bitcoin Trust (GBTC), the crypto investment product created by Grayscale, a subsidiary of Digital Currency Group (DCG). In a public statement on January 20, DCG’s owner, Barry Silbert, emphasized that all of the company’s other subsidiaries, including Grayscale, are unaffected by Genesis Global Capital’s financial situation and that this will not change in any manner.
Silbert went on to state that DCG will continue to conduct business as usual and that there will be no disruptions. However, the company owes Genesis roughly $526 million, which is due in May 2023, as well as $1.1 billion that is owed based on a promissory note that is due in June 2032. Silbert also stated that DCG has every intention of meeting its commitments to Genesis even after the company undergoes restructuring.
According to DCG, Genesis has its own independent management team, legal counsel, and financial consultants. DCG also formed a special committee of independent directors, who are in charge of the company’s reorganization, and who suggested and determined that it file for chapter 11 bankruptcy.
The statement also clarified that “neither DCG nor any of its employees, including those who sit on the Genesis board of directors, were involved in the decision to file for bankruptcy.”
Genesis Capital Faces Bankruptcy Hearing on January 23: What’s at stake?
Digital currency trading firm Genesis Global filed for bankruptcy on Jan 20, 2023, citing ‘adverse market conditions’. They are likely to complete their bankruptcy by this year May 19. This filing only applies to certain branches of the company and its Global trading and spot and derivatives trading arms are still operational and unaffected. This news has created a stir in the market and the next hearing is on Jan 23.
Background on Genesis Global Trading Bankruptcy Filing
Genesis Global Trading is a digital currency trading firm that was founded in 2013. It grew as a reputed OTC (Over-the-counter) trading firm in the crypto market. On Jan 20, it filed for chapter 11 bankruptcy which causes a stir in the crypto industry. The company is likely to liquidate its assets to pay off the creditors.
Digital Currency Group Denies Involvement
Digital Currency Group (DCG) is a venture capital firm founded by Barry Silbert and has invested in a number of crypto-related companies. The DCG is also the parent company of Genesis Global Trading. DCG responded to the bankruptcy filing stating that it has no involvement in the filing and the decision was made independently by the Genesis management team.
In the statement, they further clarified that DCG still owes Genesis Capital a lot of money. $526 million is due in May 2023 and another $1.1 billion is due in June 2032. DCG said they will help Genesis pay back its creditors very soon.
DCG has also responded to the false accusations made by Gemini related to the Gemini Earn program. They said that the threat of a lawsuit by Gemini is another publicity stunt from Cameron Winklevoss to remove the blame from himself and Gemini. They have also stated that any suggestion of wrongdoing by DCG or any of its employees is baseless and completely false. DCG assured that they will continue to engage in constructive negotiations with Genesis and its creditors with the goal of arriving at a solution that works for all parties.
Stellar – One of the biggest creditors of Genesis
The Stellar Development Foundation, which is one of Genesis’s biggest creditors, claimed almost $13 million from Genesis. However, the foundation stated that this amount is small compared to its overall assets. The Stellar treasury currently holds around 30 billion XLM tokens, which are worth over $200 million. Therefore, the foundation will not be affected by Genesis’s bankruptcy filing.
Impact on the Crypto Market
The bankruptcy filing of Genesis Global Trading has raised a number of questions about the stability of the crypto market. Some have pointed out that the filing is a sign that the market is still in its early stages and that there are still a lot of risks involved. The hearing for this case is set to take place on January 23rd and it will be interesting to see how this plays out and what the ultimate impact on the crypto market will
Genesis To Wind Up Its Bankruptcy By May
Genesis, which filed for bankruptcy today, was in dispute with Gemini exchange. As per the exchange, Genesis owes nearly $900 million to Gemini customers due to its lending product, Earn. While Genesis filed for bankruptcy today it claimed that the first’s liabilities and assets are nearly $1 billion to $10 billion along with 100,000 creditors. The Genesis Global Holdco bankruptcy was followed by its lead business associates, Genesis Global Capital and Genesis Asia Pacific.
Gemini Exchange To Sue Genesis ?
Now, Cameron Winklevoss, Gemini co-founder has threatened to sue Genesis Global along with its parent company, Digital Currency Group. This was confirmed via Cameron’s Twitter account.
As per Cameron, Genesis and Digital Currency Group are using scam as a reason to get rid of $900 million payment to Genesis. Also Cameron explained that the Genesis bankruptcy was much needed as it will help recover Gemenin Earn Users funds.
Followed by Cameron’s threat to sue Genesis, the Crypto lending firm is reported to be planning to complete the bankruptcy by May 19. Furthermore, Cameron has also mentioned that the firm will consider every option to get their funds back from Silbert and DCG.
However, Silbert has not made any statement on what will be his further steps towards DCG’s subsidiaries such as Grayscale Bitcoin Trust, one of the globe’s largest Bitcoin funds.
Meanwhile, the crypto market is moving ahead without any effects with the latest bankruptcy filing. The star cryptocurrency, Bitcoin has claimed a much awaited price trade of $21.5K while Ethereum has managed to surpass the $1.5K area.
Genesis Transfers Over $113M To Exchanges Despite Filling for Chapter 11 Bankruptcy Protection
Distressed institutional crypto lending and trading protocol Genesis Trading has transferred digital assets from its wallets to exchanges after filing for bankruptcy protection. Notably, Genesis Global Capital, LLC and Genesis Asia Pacific Pte. Ltd., filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York on January 19.
However, the DCG subsidiary noted that it has filed with the court to continue with its daily operations normally despite suspending the lending business. Nonetheless, Genesis indicated that claims will be assured through the bankruptcy court process.
“Genesis has more than $150 million in cash on hand which will provide ample liquidity to support its ongoing business operations and facilitate the restructuring process. The company has filed a number of customary “first-day” motions with the court to enable day-to-day operations to continue in the normal course,” Genesis noted.
Earlier today, blockchain security firm PeckShieldAlert highlighted several transactions worth over $100 million believed to have originated from Genesis Trading towards several centralized cryptocurrency exchanges. Among the transferred digital assets include Ethereum (ETH), Tether USDT, and Circle’s USDC.
“About 75k $ETH ($113.7M) and3.9M $USDT transferred from Genesis Trading: OTC Desk to crypto-exchanges Coinbase, Bitstamp and Kraken approximately 36M $USDC transferred from Genesis Trading: OTC Desk to a new address 0x81b3…543,” PeckShield noted.
As such, the transferred digital assets from Genesis Trading to crypto exchanges are likely meant to support operations and facilitate restructuring processes.
Interestingly, the crypto market led by Bitcoin price has been less affected by the Genesis collapse. According to our latest crypto price oracles, Bitcoin is exchanging around $21k on Friday. Ethereum’s price, on the other hand, is trading around $1,555, up approximately 2.2 percent in the past 24 hours.
How Long Will Bitcoin (BTC) Survive the Genesis Bankruptcy Filing?
The bullish start for 2023 had set aside the turmoil that Genesis was facing since the collapse of the FTX exchange. Market participants were quite confident that the bearish influence had wanned to a large extent. However, as soon as the rounds of Genesis filing for bankruptcy hovered, the markets began to compress and traded within a very narrow range, but held within the bullish regions.
Bitcoin price which surged close to $21,000, is trading close to the crucial support at $20,800. It has been able to hold these levels withstanding the bearish pressures. The trading volume has dropped heavily by more than 20%. As the prices have been trading slightly lower, it signifies that the buyers remain slightly distinct. Regardless of the bearish action prevailing, the possibility of BTC price igniting a bull rally emerges.
During the previous day, the rounds of Genesis preparing to file for bankruptcy had slashed the price below the rising parallel channel. However, after reaching immediate support, the BTC price quickly rebounded from $20,632 and currently hovering very close to $21,000.
In case of an extended bearish action, the price may drop back toward the lower support and as the volume has depleted, the price may remain consolidated for a while. Only in case of a bullish influx, the price may rise slightly but may not surge beyond $21,000.
Conversely, if the price fails to hold the support then a wider bearish action may slash the price below $20,000 very soon. A popular analyst, TAnalyst, shares a historical Bitcoin price chart from 2015 and discovers the resembles patterns it has been following since then.
Depending on its observation, he believes that the BTC price is on its track to reach $500K. The projection is for the extremely long term beyond 2030, while the Q1 2023 forecast appears to be slightly bearish.
Crypto Market Analysis: With the Genesis Preparing for Bankruptcy, This Could be the Possible Impact on Bitcoin Price!
No sooner than the crypto space was experiencing relief, yet another turbulence struck the markets. It was speculated for quite a long time that the ripple effects of the FTX fallout may carry for a long time ahead and as Genesis is facing maximum exposure, may file for bankruptcy. However, the top lending firm is said to file for chapter 11 bankruptcy soon which is expected to have a larger impact on the Bitcoin price.
Despite the market turning extremely bullish since the past weekend, some were still bearish and believed the BTC price could find the bottoms for the 2022 bear market very soon. Moreover, with the latest pullback, some of the analysts who earlier predicted the revival of a bullish trend referring to the upswing ignited in April 2019, have changed their perspective towards the token.
A popular analyst, RookieXBT had predicted that the BTC price is at the foothill of a massive explosion. But the fresh bearish clouds hovering over the markets compelled him to flip the predictions which now mark the lows around $15,000, probably due to Genesis.
“would take another unexpected black swan tbh
Genesis probably file ch11 but i reckon it’s priced in at this point and any dips are for buying
If i’m wrong, not the first time and won’t be the last time,”
Whales Shorting Bitcoin on Binance
With the growing speculation of the bearish market trend, the traders appear to be confident about the impending BTC price fallout. Due to this, the Whales appear to be preparing to make huge profits by shorting Bitcoin. A popular analyst, Micheal van de Poppe, says that the markets may probably go more downside as the Whales are buying huge BUSD to fill the shorts on Binance.
No doubt, the short liquidations may propel the price higher, but until the stop loss is triggered, the price is believed to drop heavily towards the bottom. If the speculations are spot on, then it could the last nail in the coffin. Therefore, in this scenario, Bitcoin’s (BTC) price may slide down to form fresh bottoms for the year 2023.
Crypto Lender Genesis Global Capital Set to File for Bankruptcy This Week
According to Bloomberg reports, Genesis Global Capital, a cryptocurrency lender, may take the drastic step of filing for bankruptcy. The move comes as no surprise, as the company has been in dire straits since November 16th, when it froze customer redemptions following the collapse of major cryptocurrency exchange FTX.
Genesis Global Capital’s creditors, which include well-known cryptocurrency exchange Gemini, are said to be in negotiations with the firm over a bankruptcy plan, as reported by The Block. Under the proposed plan, creditors may agree to a forbearance period of one to two years, in exchange for cash payments and equity in Digital Currency Group, the parent company of Genesis. This plan is being considered as a possible solution to address the financial difficulties that the firm has been facing.
Since the devastating collapse and bankruptcy of crypto exchange FTX in November, Genesis Global Capital has been in a frantic race against time to secure fresh capital or reach an agreement with creditors. The company’s institutional lending unit was forced to take drastic measures, such as suspending redemptions and new originations, as a direct result of the FTX implosion.
Digital Currency Group (DCG), the parent company of Genesis, has been facing mounting pressure to fulfill its obligations of $900 million worth of locked deposits. In a bid to explore options, Genesis retained the services of investment bank Moelis & Co. last year.
In early 2022, Genesis suffered a significant setback when its $2.4 billion loan to hedge fund Three Arrows Capital went bust, following the collapse of Three Arrows due to its exposure to the Terra network, whose token and stablecoin value had drastically dropped.
FTX Bankruptcy Filing Reveals SBF’s Connection With VC Firms
FTX exchange, a popular cryptocurrency exchange which was widely used by traders to buy and sell coins and tokens filed for bankruptcy on 11 November. Since then the investigation team has been on their toes to dig out all the confidential information related to FTX and its founder Sam Bankman-Fried. While the team is trying to know in depth information everyday there is new information that is popping out.
In the early hours today, the bankruptcy filing revealed the names of FTX shareholders including football star Tom Brandy and other well-known celebrities along with a few popular firms like Coinbase. Now the latest updates claim that FTX founder and former CEO, Sam Bankman-Fried had invested nearly 20 million USD in Paradigm, a venture capital firm. Furthermore, it’s also been reported that Paradigm later bought FTX shares.
It was in 2021 that SBF invested in a fund that was managed by Paradigm and later the same $2.5bn Paradigm One fund invested in FTX and FTX US exchanges. Earlier, Paradigm One was one of the largest crypto venture capital. Paradigm, which was created in 2018 by ex-Sequoia Capital partner Matt Huang and Coinbase co-founder Fred Ehrsam, claimed that SBF was given the same respect as others in its fund.
Paradigm Regrets Its FTX Investments
On the other hand, as per the reports, SBF had also invested $5mn in a fund that was introduced by UVM, a Singaporean bank and Signum Capital. These firms are the first of few investments that Sam Bankman-Fried had invested.
Paradigm was one of the main investors in FTX where the firm aided FTX’s internal venture team to run its Series B funding in July 2021. Huang had earlier claimed that SBF was among the special founders whose vision was ambitiously focused towards Crypto future.
However, after FTX filed for bankruptcy, Huang tweeted that he was deeply feeling regret for his investments in a company and a founder whose values were not in vision of crypto values.
Is Digital Currency Group (DCG) a Sinking Ship? What To Expect in 2023 – Another Bankruptcy?
Digital Currency Group (DCG) is a venture capital firm that invests and builds businesses in cryptocurrency, and blockchain-related companies. It is founded in 2015 by Barry Silbert and is headquartered in New York. The subsidiary companies of DCG include Genesis (a crypto lending firm), Grayscale (a securities firm), and Coindesk (a crypto news agency).
Genesis provides liquidity to institutional clients and professional traders by facilitating the trading of large blocks of cryptocurrencies like Bitcoin, Ethereum, etc.
Grayscale is a digital asset management firm that offers investment products for institutional and accredited investors. The firm provides various investment products such as digital currency investment products, and ETFs, that can be bought as shares on OTCQX. The share price mirrors the price movements of bitcoin prices.
Grayscale’s investment products are backed by Bitcoin and other cryptocurrencies. This product was introduced to expose investors to cryptocurrencies without risk involvement. Grayscale makes money by charging a small commission on trading shares and also charging an annual fee.
As of now, Grayscale is the second largest owner of Bitcoin other than Satoshi Nakamoto which amounts to 638,480 BTC.
What happened to Genesis?
Following FTX’s collapse in November 2022, Genesis officially said on their Twitter account that they had lost $175 million, however, they assured that it won’t affect their market-making activities. But within a week they halted withdrawals which caused widespread anxiety among the investors.
The year 2022 had not been good for Genesis, as two companies (Three Arrows Capital and Babel Finance) in which Genesis invested failed miserably which resulted in the loss of millions of dollars for Genesis. This happened in June 2022. FTX collapsed in November 2022 and Genesis was affected. Even though the parent company DCG gave a loan to Genesis to keep the company afloat, it was not enough.
Federal prosecutors are currently investigating the dealings and transactions between DCG & Genesis. Genesis Spokesperson assured that the company operations are done according to federal laws and the current financial crunch will be settled soon.
What happened to Grayscale?
Grayscale Bitcoin Trust (GBTC) is a prominent investment product of Grayscale. GBTC allows investors to follow the movement of Bitcoin without actually owning or holding the bitcoin. GBTC is like a share where the investors can buy, sell and trade just like any other stock.
The amount of GBTC an investor holds is directly proportional to a certain fraction of bitcoin they could have owned. Investors won’t have to take the risk of holding Bitcoin if they are owning GBTC. Grayscale reassured the customers that there is no risk involved and it is a completely secure investment.
The price of GBTC can vary and may be traded at a premium or discount depending on the supply and demand of GBTC shares. GBTC may be sold at a lower price (discounted price) if demand is low and may be sold at a higher price (premium price) if the demand is high. The risk with GBTC is that when there is a downtrend in the market, GBTC will be sold at a discounted price causing a loss for the Grayscale company
After the bull run in 2021, Bitcoin had a bearish year in 2022. This has affected the revenue generation in Grayscale also. On top of that, there are massive withdrawals by investors in every exchange and cryptocurrency investment firm. The ugly truth is that DCG, Genesis, and Grayscale were not prepared for this and hence they halted withdrawals.
How SEC could have helped Grayscale?
Grayscale has done everything from their side to convert GBTC into ETF so as to remove the leverage and thereby remove premium and discounted prices. They have requested this from the Securities and Exchange Commission (SEC) many times. But SEC denied this stating that it might lead to Spot bitcoin manipulation and fraudulent activities. SEC was correct from their point of view and Grayscale has sued SEC for this which will get a final verdict on 3rd Feb 2022.
What is Likely to Happen in 2023?
There is a high chance that DCG may file for Chapter 11 bankruptcy. If that happens they might need to liquidate their assets, but the company cannot just sell off their digital assets so easily and might require more time. The assets of Grayscale might also be liquidated to recover the loan amount.
Winklevoss brothers might sue Genesis for the mismanagement of their investor funds. Genesis is also on the verge of bankruptcy. It had laid off 30% of its employees in 2022.
The bright side is that federal prosecutors are working in the best interest of affected investors and the general public. If there is one big thing you can learn from this prolonged crypto winter is that – “Keep your coins in your own wallet, Be the sole custodian of your coins!”
Genesis Trading lays off 30% of its Workforce As Bankruptcy Looms
Genesis Trading, a troubled crypto lending company, has laid off 60 more employees, or 30% of its workforce, according to sources. This marks the company’s second round of layoffs, after previously cutting approximately 20% of its staff, including replacing its CEO.
The Digital Currency Group’s lending arm has been under pressure from creditors and facing potential bankruptcy. The company currently has 145 employees but may face further layoffs as it seeks new liquidity. Genesis Trading attributes its difficulties to large exposure to the troubled FTX and Alameda.
“As we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our headcount globally,” the spokesperson said in a statement. “These measures are part of our ongoing efforts to move our business forward.”
The continued layoffs may be an indicator of a looming bankruptcy case to help the company restructure its core business.
Genesis Trading Faces Imminent Bankruptcy
The crypto lending firm has a huge imbalance in its balance sheet amounting to billions. According to recent revelations by crypto exchange Gemini co-founder Cameron Winklevoss, more than $900 million belonging to over 340k Earn users is stuck with Barry Silbert and Digital Currency Group. However, Silbert vehemently denied the accusations, which further complicates the entire case.
“DCG did not borrow $1.675 billion from Genesis. DCG has never missed an interest payment to Genesis and is current on all loans outstanding; the next loan maturity is May 2023. DCG delivered to Genesis and your advisors a proposal on December 29th and has not received any response,” Silbert noted.
The nasty accusations have led to analysts warning regulators may ban cryptos from operations. Furthermore, billions of dollars belonging to individual investors have been wiped out in less than twelve months.
The open letter from Cameron has warned Silbert that Genesis and DCG have until January 8 to solve the problem amicably before facing legal action. As such, Genesis is likely to file for bankruptcy protection, which could mean more capitulation in the crypto market.
Furthermore, last year’s losses sustained from Three Arrows Capital (3AC) have now worsened by the Alameda and FTX implosion.
Genesis Trading’s other businesses, including spot and derivatives markets, have bolstered its balance sheet in the past few quarters. Nonetheless, the decreased cryptocurrency trading volume has threatened its core business of loaning fiat against digital assets.
Prominent Research Firm Issues a Warning. Here’s What Will Happen if DCG Files for Bankruptcy
Arcane Research, in a new report, has highlighted that investors should keep an eye on Digital Currency Group’s (DCG) prolonged financial troubles because it could have a negative impact on the cryptocurrency market.
Analysts and investors have voiced a critical concern following the disclosure of Genesis’ issues: what would happen to Grayscale, a DCG subsidiary that owns a substantial amount of Bitcoin. The majority of market participants undoubtedly learned about the issues DCG had following the collapse of FTX and many other companies.
The research stressed that if DCG files for bankruptcy, then it will be forced to liquidate its assets. After this, it will force DCG into selling its sizable positions in GBTC and unknown positions in ETHE and other Grayscale trusts.
“Currently, GBTC trade at a 45% discount to its NAV, while ETHE trades at a 59% discount to its NAV. GBTC holds 3.3% of the circulating BTC supply and 2.5% of the ETH supply. A Reg M would cause a massive arbitrage strategy of selling crypto spot versus buying Grayscale Trust shares. If this scenario plays out, crypto markets could face further downside.”
Arcane Research also highlighted the open letter written by Cameron Winklevoss to DCG CEO Barry Silbert accusing Barry of acting in bad faith and using stall tactics. At the end of the letter, Cameron asked Barry to publicly promise to help and resolve the issue by January 8. In the meanwhile, Gemini’s intended course was not stated in the letter, but if Barry doesn’t answer, things could progress to the coordination of an involuntary petition for a DCG Chapter 11.
“Additionally, on December 28, investment advisor Valkyrie delivered a proposal to become the new sponsor and manager of GBTC while also announcing the launch of an opportunistic fund seeking to take advantage of the GBTC discounts.”
Celsius Network’s Stablecoins Face Liquidation To Cover Bankruptcy Costs
Judge Martin Glenn, the chief United States Bankruptcy Judge in the Southern District of New York, has ruled that ownership of the assets in the Celsius Network’s Earn Accounts belongs to debtors. As such, Glenn ruled that all stablecoins deposited in the Earn Accounts by Celsius customers will be liquidated to meet the cost of bankruptcy proceedings. The issue at hand saw Celsius customers trapped by terms and conditions in the Earn Program.
Nonetheless, Judge Glenn indicated the court does not take lightly the results of his decision on individual investors. Moreover, Celsius customers will have to wait longer before receiving a refund from the bankrupt firm.
“Debtors contend that because the Earn Assets, including stablecoins, are property of the Estates, the Debtors can sell stablecoins to create liquidity to fund administrative expenses associated with these bankruptcy cases,” the court filings noted.
The ruling follows a recent motion filed by Celsius Network to extend the prior schedule for the Bar Date before Judge Glenn, to January 10, 2023, at 11:00 a.m. ET.
Celsius Plays Dirty at the Mother Court
According to Celsius’s terms and conditions for the Earn program, deposited crypto assets belonged to the company following the bankruptcy filing. The court noted that customers hardly take time to completely understand the legal limitations they put themselves into by accepting terms in good faith. As such, the court felt obligated to side with the debtors due to the ‘unambiguous’ terms of use.
“The issue of ownership of the assets in the Earn Accounts is a contract law issue. The Debtors and Committee argue that the cryptocurrency assets deposited in Earn Accounts were owned by the Debtors and are now the property of the Estates. Many Earn account holders (“Account Holders”) argue that the Account Holders, rather than Celsius, own the cryptocurrency assets in the Earn Accounts and that cryptocurrency assets should promptly be returned to them,” the court filings noted.
Forward, the judge concluded that creditors will have an opportunity to have a full hearing on the merits of these arguments during the claims resolution process.
Meanwhile, Celsius customers and investors will continue waiting for the bankruptcy proceedings to take due course to get a full refund. Moreover, the cryptocurrency market is continually changing and receiving different law interpretations. Nonetheless, the Biden administration has ordered federal agencies including the SEC and CFTC to clump hard on predatory crypto projects.
Is SBF 2.0 Incoming? Will the Entire Genesis Fiasco End up in the Year’s First Bankruptcy?
The FTX contagion continues to spread as the aftermath appears to have not settled. After the fallout of the famous exchange FTX, many platforms which had heavily invested in the firm have been facing dreadful days. Soon after the top trading firm, Genesis which shares a huge trading volume halted customer withdrawals, it was considered an alarming situation for the entire crypto space.
Currently, the debacle doesn’t appear to settle as it may further cause the final leg down for the prevailing bear market.
All of it began with the massive fallout of FTX which was triggered by Binance selling their FTT holdings as FTX was not left other than their native token in their reserve. Further, it led to a ripple of fallouts which compelled BlockFi, a well-known landing platform to file for Chapter 11 Bankruptcy. It was the same time when Genesis also halted customer withdrawals which created huge FUD within the space.
Will Genesis File for Bankruptcy?
Now all eyes are on Genesis as the speculation of its bankruptcy has been hovering within the crypto space for some time now. In a recent update, Gemini founder, Cameron Winklevoss wrote an open letter to Billy Silbert, the founder of DCG Group, the parent of Genesis and Grayscale.
Cameron accused him of negotiating in bad faith as the funds of Gemini’s Earn have been stuck with Genisis. The exchange had locked the customer’s assets funds on Genesis which was in turn invested in DCG as per some reports. Further, the funds were sent to Grayscale which continues to hold a substantial amount of assets.
Now that Genesis and DCG are going down, and not able to pay back the customer’s funds, it is now speculated that Grayscale may soon liquidate its holdings. If this happens so, a fresh bearish wave may kick in to pull a massive leg down, forming new lows of the current bear market.
What Will Happen if Grayscale is Forced to Sell Their Holdings?
Grayscale, is the top investing and asset management platform offering GBTC shares where-in the user bets on the share value rather than holding the asset. The platform has numerous trusts like Bitcoin trust, Ethereum trust, etc which have been expanded ever since the markets boomed in 2021.
However, now that the fear of Genesis filing for bankruptcy is hovering within the crypto space, other Bitcoin numerous altcoins also may face acute selling pressure.
Genesis may not have left with a huge amount to offer back to the customers and if Grayscale liquidates it’s holding a fresh bearish wave that may kick in.
Argo Blockchain Proceeds To Avoid Bankruptcy With $100 Million Bailout
The recent turmoil in the cryptocurrency market has sent severe shockwaves to the mining industry with low crypto values and rising energy costs, creating an unstable situation for several leading mining firms to continue their operations.
The last two months have been rough for the leading Bitcoin mining firm Argo blockchain, with increasing concerns regarding running its mining facilities due to insufficient cash. Moreover, the steep downfall of over 40% in ARB’s share price has stressed its investors with the firm’s future potential and expansion.
However, the mining firm is expressing its crucial steps in avoiding bankruptcy by halting its London Stock Exchange (ARB) and Nasdaq (ARBK) shares. Additionally, the firm proceeds to sell its mining facilities to Galaxy Digital to continue the cash flow into the firm.
Galaxy Digital Becomes A Messiah For Eliminating Argo Blockchain’s Bankruptcy Risks!
As the trend of bankruptcies keeps growing after the sudden demise of the behemoth crypto exchange FTX, Argo Blockchain becomes the current target to continue the rally, which may result in a severe price dip for the Bitcoin market. According to a recent report, Argo Blockchain takes a step ahead to avoid its bankruptcy risks by seeking help from Mike Novogratz’s crypto-focused financial services firm, Galaxy Digital.
In a statement, Argo Blockchain agrees to sell its largest mining facility, i.e., Helios mining facility in Dickens Country, Texas, to Galaxy Digital for $65 million. Furthermore, the mining firm seeks a loan of $35 million from the crypto firm to continue funding the mining facility. Argo Blockchain stated that the loan would be secured by their mining equipment.
Argo’s CEO Peter said, “Over the last few months, we have been looking for a way to continue mining through the bear market, reduce our debt load, and maintain access to the unique power grid in Texas. This deal with Galaxy achieves all of these goals, and it lets us live to fight another day.”
Argo In A Do Or Die Situation
Selling off Argo’s biggest mining facility has been a tough decision for the crypto giant as it has up to 180 megawatts (MW) of power capacity and will be Galaxy Digital’s flagship mining operation after executing the deal. However, this step was necessary to keep investors in the firm as the deal will boost Argo’s balance sheet and eliminate the risks of bankruptcy filing after a $27 million deal collapsed in October.
Amanda Fabiano, Head of Mining at Galaxy, stated, “Quality infrastructure and access to low-cost energy are the cornerstones of a successful mining operation, making the acquisition of Helios an incredible milestone for the growth of Galaxy’s mining business.”
The Bitcoin mining giant previously promised its investors that it was looking for multiple negotiations with crypto firms to sell off its mining facilities and assets and execute smooth fundraising to avoid chapter 11 bankruptcy filing. It is to be noted that Argo Blockchain signed a two-year hosting agreement with Galaxy to secure a place for its computers to continue mining at the Helios facility.
Chris Ferraro, president and chief investment officer at Galaxy Digital, said, “We were in a position to solve the problem completely for Argo while accelerating the expansion of our own mining capabilities.”
Galaxy Digital finds this as a bear market opportunity to stand out amid the market’s downfall as the Helios mining facility will become the dominating choice that Galaxy made this year, pushing the firm to become one of the most competitive crypto firms in the crypto world.
Ferraro said, “Galaxy is aspiring to be one of the most trusted nodes of the decentralized future. The acquisition of Helios represents a new stage over our two-year journey in bitcoin mining that increases our operating scale and breadth of solutions, creating sustainable value for the biggest decentralized digital asset network and shareholders alike.”
Core Scientific Files For Bankruptcy Protection, Plans To Continue BTC Mining
This year has been difficult for Core Scientific, one of the major Bitcoin mining companies in the world, as a result of the precipitous decline in the price of Bitcoin as well as the rising cost of electricity.
Following the favorable response to a financing proposal from a current creditor that was made on December 14, the business’s stock has skyrocketed about 200% in the previous four days, in the hopes that the company would be able to avoid filing for bankruptcy.
However, there was no way to prevent it from happening. As of the 21st of December, Core Scientific has submitted its bankruptcy petition under Chapter 11.
Just a week ago, the financial services platform B. Riley made an offer to the miner to provide financing in the amount of $72 million in order to prevent bankruptcy and maintain value for Core Scientific’s stakeholders.
In the offer, B. Riley said that it is willing to finance the first $40 million immediately, with no conditions attached, and that it has no qualms about funding the whole amount.
The financial platform said that the remaining $32 million would be contingent on the BTC miner halting all payments to equipment lenders while Bitcoin prices remained below $18,500. This condition would be met if the miner kept the price of Bitcoin at or below $18,500.
The most recent time that the price of Bitcoin reached higher than $18,500 was on November 9, when it saw a drop of more than 14% in a single day. The price of the king cryptocurrency is around $16,800 at the moment.
Core Will Continue to Operate Normally
Despite the fact that it has filed for bankruptcy, Core has said that it would keep mining Bitcoin while negotiating a settlement with senior security noteholders. These noteholders control the vast majority of the company’s debt.
After peaking at over $69,000 in November 2021, Core Scientific has seen the token’s value plummet to its current level of roughly $16,800. As a result of this depreciation in value, as well as increasing competition from other miners and higher energy costs, its profit margins have shrunk.
By Tuesday’s close of trade, Core’s market value had dropped to $78 million from a high of $4.3 billion in July 2021, when the business went public via a special purpose acquisition vehicle. Over the last year, the stock price has dropped by more than 98%.
Closing Thoughts
Core, which has been struck hard by the market slump, submitted a report on October 26 stating that it may fail on some of its commitments due to the low BTC price, high power prices, and the unwillingness of insolvent crypto lender Celsius to return a $2.1 million loan.
Given that Core will keep mining and functioning regularly, I don’t think this will have a major effect on the cryptocurrency market. But it will still be a painful blow.
This has been the case for a number of failing mining firms and those in the mining industry this year. Plus defunct cryptosystems like FTX, Three Arrows, and Celsius. Core Scientific is, after all, the first publicly-listed Bitcoin miner to file for bankruptcy.
Bankruptcy Court Orders Celcius to return $50M of Crypto
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The order delivered by the Bankruptcy judge of the Southern District of New York directed Celsius, the crypto lender, to return the cryptocurrency worth $50M to Custody Account Holders. According to the Celcius filing in September, it has about 58,300 users who collectively deposited over $210 million with its custody and withhold, with 15,680 customers holding “Pure Custody Assets” worth around $44 million. The matter was taken to a hearing by the Bankruptcy Court of the southern district of New York on October 6. It applies to an amount of crypto that was worth about $44 million in September.
BlockFi Files For Chapter 11 Bankruptcy Protection
Another crypto company has recently fallen victim to the FTX contagion. As reported by Reuters, BlockFi, a cryptocurrency lender and financial services firm filed for bankruptcy protection on Monday. On November 11, the same day FTX filed for bankruptcy, BlockFi first stopped allowing withdrawals.
“We, like the rest of the world, found out about this situation through Twitter. We are shocked and dismayed by the news regarding FTX and Alameda,” BlockFi wrote in a letter at that time. A few weeks ago, the company had stated it had $256.9m in cash on hand, which should be enough to fund continued operations. Additionally, it stated that platform operations are currently suspended.
BlockFi stated on its website a few days after FTX filed for bankruptcy that it was unable to conduct normal business, acknowledged that it had “significant exposure” to FTX, and would evaluate efforts to recover “all obligations owed to BlockFi.”
“We do have significant exposure to FTX and associated corporate entities that encompasses obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US. While we will continue to work on recovering all obligations owed to BlockFi, we expect that the recovery of the obligations owed to us by FTX will be delayed as FTX works through the bankruptcy process,” BlockFi said in the November update.
BlockFi will begin the restructuring process in order to protect its clients. “With the collapse of FTX, the BlockFi management team and board of directors immediately took action to protect clients and the Company,” said Mark Renzi of Berkeley Research Group, the Company’s financial advisor, as reported by Business Wire.
The company apologized to its clients and investors and said, “We look forward to transparency through our reorganization, and will work to keep clients and stakeholders informed as we make progress.”
However, they assured that they will continue to work on the obligations. But due to the ongoing FTX debacle, the company said that recoveries from FTX will be delayed.
At the time of the FTX collapse, BlockFi wrote in a letter, “We, like the rest of the world, found out about this situation through Twitter. We are shocked and dismayed by the news regarding FTX and Alameda.”
Stay Tuned For the complete story…
Genesis Denis Bankruptcy Rumors! Here’s The Complete Truth
With the foreboding signs of strain at Genesis Trading, a digital asset financial services company, Bitcoin stayed below $16,000 on Tuesday morning, just two days after crossing the threshold for the first time in two years.
FTX has triggered severe market volatility as Genesis Trading struggles to raise financing in its current situation of turmoil. According to a WSJ report, the crypto lender also solicited Binance and Apollo Global Management to bid on its loan portfolio.
What were the warning signs?
- According to the latest proceedings, FTX filed for bankruptcy on November 10, causing crashes in the crypto world.
- Gemini Earn users were alerted about withdrawal delays 5 days later.
- Genesis’ decision to halt withdrawals caused a 75% jump in the market lending rate for the Genesis Dollar (GUS), which was ascribed to a selloff and suspected shorting.
In spite of this, reliable sources claim that Binance has decided not to invest in Genesis at this time. Binance is concerned that some of Genesis’s potential commercial endeavors could lead to a conflict of interest, according to insiders.
However, Genesis had been planning to raise $1 billion in fresh cash. The crypto lender is facing a liquidity shortage due to significant withdrawals on the site. The firm blocked redemptions on November 10, saying it had $175 million locked in an FTX trading account.
What went wrong?
Early this year, the demise of Three Arrows Capital marked the beginning of Genesis’s problems (3AC). A $1.2 billion lawsuit against the hedge fund has been filed by Genesis Global’s parent firm, Digital Currency Group. Several insiders also informed IntoTheBlock that Genesis had cut its goal for fundraising by 50%, from $1 billion to now $500 million.
How will Genesis’s collapse impact the cryptocurrency market?
Genesis’ position in crypto, links to problematic enterprises, and financial reach raises contagion fears. Three Arrows Capital, a Singapore-based crypto hedge fund, and FTX-affiliated Alameda Research were Genesis’ two biggest debtors. Both are insolvent and thus, the impact will be much more intense than expected.
Is Genesis Going To File For Bankruptcy?
A Genesis spokesperson responded to the recent events by stating that the firm has no “imminent” plans for bankruptcy. According to the representative:
We won’t be declaring bankruptcy any time soon. Our aim is to reach an amicable solution to the current crisis so that no bankruptcy proceedings are necessary. Genesis’s communication with its creditors remains positive.
There’s no denying that Genesis is currently in a dire situation. In light of the recent events, the cryptocurrency exchange Gemini has temporarily suspended its Earn Program because Genesis is its Earn Program’s loan partner.
Gemini said they’re working closely with Genesis and Digital Currency Group on this issue.
“This is our top priority, and we know Genesis and DCG are exploring all possibilities to fulfill their pledges to Earn users,” the statement stated.
To sum up
There is a looming question on everyone’s mind: “What if Genesis goes under after FTX?”
Undoubtedly, this will result in massive chaos- adding to the situation of turmoil that is already prevailing and is likely to cause an even larger market correction.
Here’s What Next For Bitcoin (BTC) Price Amidst FTX Bankruptcy
Cryptocurrencies fell dramatically after ailing crypto exchange FTX filed for bankruptcy and CEO Sam Bankman-Fried resigned. Crypto market capitalization fell 18.3% to $803 billion.
This was an action-packed week, which has had a dramatically dreadful impact on the crypto community. In times of such uncertainty, experts are pitching in to provide an analysis.
How has the FTX crisis impacted the crypto space?
While many challenged that this dispute will have a bigger impact on the dominos, there are others who think that there will be a positive impact on the future. Let’s analyze.
Anonymous analyst, rekt capital 
rekt capital author at Rekt Capital Newsletter Rekt Capital AuthorTraderMarket Analyst 
Followers : 0 View profile , has 329,500 Twitter followers and has assured them that bitcoin org 
bitcoin org Event OrganiserTechnologyPayment solution 
Followers : 0 View profile fortunes would improve in the near future (BTC).
In the future, the price of bitcoin will rise. “But today is not that day.”
Traders should also keep in mind, according to Rekt Capital, that the current bear market will be followed by a bull market and then by another bear market.
Will there be a 50% correction?
Rekt Capital added that people think BTC will never see another -80% Bear Market because it is now mainstream & too mature of an asset. However, let’s not forget there was a -53% correction just months ago.
“In addition to that, he stated that the typical depth of a Bear Market is -84.5%.” After this Bull Market, there is a high probability that there will be one.”
According to the analyst, bitcoin has lost 78% of its value since October 2021.
BTC Price to Drop Below $11K?
According to the popular crypto analyst, based on BTC’s history, it is yet to drop to $11,000. There will be a BTC market bear market correction of -84.5%, which might drop it to -$11,000.
Considering the recent ftx exchange 
ftx exchange Centralised Exchange Followers : 0 View profile fallout, the trader assumes that the exchanges might collapse during these periods of movement and uncertainty.
“In times of BTC capitulation, manual dollar cost averaging at lower prices may be challenging. Exchanges tend to crash during intense volatility & can be difficult to buy BTC”
During such times, the trader recommends his followers to buy orders beforehand to gain BTC exposure during extreme volatility.
However, he also compares FTX to Mt. Gox. like other fallen exchanges. He points out the pattern wherein previous BTC cycles, it was Bitmex, before that Mt Gox, and now FTX. According to him, Exchange contagion has a history that happening close to the absolute BTC Bear Market bottom. He points out that if people survive such tumultuous times, they will flourish in the upcoming bull market.
He emphasizes that bear markets lead to bull markets, and sometimes to all time highs. As he says “In every cycle, BTC has made a new All-Time High.”
In Conclusion
$69,000 is the current all-time high for Bitcoin, and also mentions the possibility of the current price $16,800 dipping even further. However, there’s a bright future; according to his math, it will give large returns in the coming bull market.
BTC is trading for $16,863 at the time of writing.
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CEO Bankman-Fried Resigns as FTX Files for Bankruptcy Protection in The U.S.
Days after bigger rival Binance withdrew from a planned acquisition, the announcements were made.
On November 11 – The troubled cryptocurrency exchange FTX said on Friday that it would file for bankruptcy in the US as its Chief Executive Sam Bankman-Fried quit, potentially setting off one of the largest market meltdowns ever.
The company made the news on its Twitter account days after bigger rival Binance backed out of a planned purchase, leaving it scrambling to raise nearly $9.4 billion from investors and competitors.
The firm claimed that Alameda Research, a trading company owned by Bankman-Fried, is also covered by bankruptcy protection. According to sources, it is partially to blame for FTX’s problems and owes FTX almost $10 billion.
The demise of FTX represents a spectacular turnabout in fortunes for the business and its founder Sam Bankman-Fried, who was once regarded as a “white knight” and was compared to the wealthy Warren Buffett.
It also makes one wonder what will happen to smaller enterprises like BlockFi and the bankrupt cryptocurrency lender Voyager Digital, which had signed rescue agreements with FTX after the stunning TerraUSD meltdown in May brought so many businesses to the verge of failure.
After experiencing a liquidity crisis brought on by consumers withdrawing money at a rapid clip, FTX was looking for a lifeline. It also fuels worries about the future of the cryptocurrency sector, which has difficulty winning mainstream investors’ trust.
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FTX to File For Bankruptcy Protection in US
The post FTX to File For Bankruptcy Protection in US appeared first on Coinpedia Fintech News
The troubled cryptocurrency exchange FTX said on Friday that it would file for bankruptcy in the US as its Chief Executive Sam Bankman-Fried quit, potentially setting off one of the largest market meltdowns ever.
The swift demise of the businesses was capped by Sam Bankman-crypto Fried’s empire filing for Chapter 11 bankruptcy in Delaware.
According to a tweet on Friday, the filings included entities connected to FTX.com, FTX US, and trading business Alameda Research Ltd. A corporation can keep running while developing a plan to pay off creditors under Chapter 11.
As a result of the filings, Bankman-Fried resigned as CEO, and John J. Ray III was chosen to take his position, according to the statement.