Genesis ‘may file for bankruptcy this week’

Cryptocurrency

A report claims that crypto broker Genesis Global Trading may file for bankruptcy this week.

A person familiar with the matter told the Financial Times that a pre-packaged bankruptcy deal is being negotiated with creditors and would include cash and equity in its parent company Digital Currency Group, which is backed by SoftBank.

Genesis owes creditors more than $3 billion and its customers have been unable to withdraw funds since November. This week DCG halted its quarterly dividend payments to shareholders indefinitely as it attempts to preserve liquidity. 

Among the $3bn, $900m is owed to customers of Gemini, the crypto exchange owned by twins Cameron and Tyler Winklevoss, and €280m to Dutch exchange Bitvavo.

Meanwhile crypto media outlet CoinDesk – one of the other 200-odd crypto businesses owned by DCG – is reportedly considering a sale to strengthen the balance sheet. According to the Wall Street Journal, financial advisory firm Lazard is exploring potential options for a full or partial sale.

In recent months DCG has reportedly received multiple offers exceeding $200m for CoinDesk, which it acquired for just $500,000 in 2016.

A CoinDesk article in November exposing irregularities in Alameda Research’s balance sheet is thought to have begun the process which led to the collapse of FTX – and therefore the liquidity issues now being faced by Genesis and DCG.

It has also been reported that Lithosphere blockchain core developer KaJ Labs is willing to help DCG with its insolvency issues by extending a credit facility of $830m.

The Lithosphere network aims to eliminate bottlenecks hindering mainstream blockchain tech adoption by offering a robust infrastructure for distributed value transfer and interoperability across multiple blockchain networks.

In Crypto: £20m Blackpool Bitcoin fraudsters jailed

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ConsenSys, the parent company behind MetaMask, is laying off 11% of its workforce due to “uncertain market conditions”.

The Central Bank of Iran is working with the Russian government to jointly issue a new cryptocurrency backed by gold. According to the Russian news agency Vedomosti, the ‘token of the Persian Gulf region’ would serve as a payment method in foreign trade.

Anatoly Legkodymov, a Russian national living in China who founded cryptocurrency exchange Bitzlato, was arrested on Tuesday in Miami on charges of conducting an unlicensed money-transmitting business. The US Justice Department says Bitzlato became a haven for the proceeds of criminal activity.

Intella X, a subsidiary of the South Korean gaming and entertainment giant Neowiz, has raised $12m funding backed by Animoca Brands, Polygon and Magic Eden. The company is developing a blockchain gaming platform that will be powered by the Intella X token.

Deal Box, a capital markets advisory platform, has launched a venture arm to invest $125m in startups that leverage Web3 technologies.

Obligate, a startup offering blockchain-based regulated debt securities, has raised $4m from Blockchange Ventures and Circle Ventures in a seed extension round to scale its debt platform which launches next month on the Polygon blockchain.

Software-based investment company Crypto Shark announced record profits for the last quarter of 2022. The app will be available for free on both iOS and Android from 25th April 2023 and will allow clients of the trading firm to manage and view their accounts on their smartphones, tablets or mobile devices.

London media tech firm bought by US music giant

Crypto prices

The overall market cap of the 22,300 coins is at $969 billion at the time of writing (7am UK), a 2.5% decrease in the last 24 hours.

For round-ups of recent cryptocurrency news developments, click here.

For valuations of the top 100 coins by market cap in US dollars, plus 24-hour price change, see below.