"DCG's Genesis files for Chapter 11 bankruptcy." Jan 20, 2023 - Transcripts
It's 8am Eastern January the 20th and this is your daily crypto report. Bitcoin is up 0.5% at $21,100, Ethereum is up 0.5% at $1,559 and Binance Coin is up 0.5% at $289. While Digital Currency Group's Genesis has filed for bankruptcy protection, the move comes after the firm failed in a bid to raise cash for its troubled lending unit. The firm reportedly owes its top 50 creditors at least $3.5 billion and its filing Genesis Global Capital says it expects that through the restructuring process there will be money left over to pay unsecured creditors, a group that can get wiped out in bankruptcy cases if the situation is extremely dire. Cameron Winklevoss had demanded the removal of DCG's CEO Barry Silbert on January 10th alleging accounting fraud and is now threatening to sue Barry Silbert over the repayment of a $900 million loan. The public tweets were sent just minutes after Genesis filed for Chapter 11 saying we have been preparing to take direct legal action against DCG, Barry and others who share responsibility for the fraud that has caused harm to the 340,000 plus earned users and others duped by Genesis and its accomplices. This is the latest in a weeks long out and the public dispute between the two leaders. While Hubie has confirmed Justin's son is leading the exchange after being on the Global Advisory Board, the Singapore-based exchange said under the leadership of Justin, Hubie has embarked on a path to rebirth. This is the first public acknowledgment that the crypto entrepreneur is at the helm after months of speculation. The exchange has also said that they'll crack down on rat trading. Rat trading is the actions of investment directors and managers personally in loading tokens and using public funds to raise the price and sell their personal wallets for a profit. Hubie said several accounts that were frozen for their abnormal behavior are characterized by their lack of trade at normal times.
These accounts have made abnormal levels of profits many times and the profits were quickly withdrawn calling them clear indicators of rat trading which the exchange now has a zero tolerance policy for. Neopets meta has raised $4 million in a funding round from Polygon Ventures and Blizzard Avalanche, the web3 spinoff for the popular classic virtual pet game which dates to 1999 launched the alpha version of its metaverse in August. It's not clear at this time what the funding will be used for. And finally, Nexo will pay $45 million to settle SEC and state charges for their failure to register the Nexo lending earned interest product. The firm will pay half of that amount in penalties and agree to cease the sale of the earned interest product to US investors. The other half goes to settle similar charges to specific states. Nexo's earned product dates to 2020. Notably, Nexo didn't admit or deny the agency's findings and released a statement saying we are confident that a clear regulatory landscape will emerge soon and companies like Nexo will be able to offer value creating products in the US in a compliant manner. Well, that's all for us today. Visit us at DailyCryptoReport.io for sources and links and listen to us everywhere else
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