Final Days for Genesis? ❌
In today's edition: 😵 Genesis might file for bankruptcy, 📄 DOJ charges Bitzlato, 🗳️ MakerDAO votes about GUSD, 📈 Texas plans to authorize Bitcoin, 💰 CoinDesk's possible sale, and more!
On the Pod…
Everything About Bankruptcies
Now that Genesis is reportedly close to filing for bankruptcy, it’s a perfect time to listen to the episode with Thomas Braziel, an expert on the topic. Tom gives a crash course on bankruptcy law, which would come in handy to better understand everything that’s going on.
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What’s Poppin’?
Is Genesis’s Prepackaged Bankruptcy the Ultimate Sacrifice?
by Samyuktha Sriram
Genesis is reportedly in talks with its creditors about the specifics of their Chapter 11 bankruptcy filing.
DOJ Charges ‘Bitzlato’ for Laundering $700M
The U.S. Department of Justice charged crypto exchange Bitzlato with laundering $700 million and arrested its founder Anatoly Legkodymov in Miami. Legkodymov, a Russian national residing in China, was taken into custody on Tuesday and is scheduled to be arraigned at U.S. District Court for the Southern District of Florida this week.
The DOJ described the enforcement action as “a significant blow to the cryptocrime ecosystem,” but industry proponents were unimpressed. Many in the crypto community have never heard of the Hong Kong-based crypto exchange, despite it being one of the highest-volume entities to interact with the Hydra dark net market.
CoinDesk Is Looking for A Buyer
Digital Currency Group-owned media outlet CoinDesk is exploring a full or partial sale, according to a report from the Wall Street Journal. The publication has enlisted Lazard, a firm specializing in mergers and acquisitions, for advisory services towards the cause.
“Over the last few months, we have received numerous inbound indications of interest in CoinDesk,” said CoinDesk CEO Kevin Worth to The Block in an emailed statement. The purpose of the sale will be to attract growth capital amid a time of financial distress at DCG.
CoinDesk was acquired by DCG in 2016 for a figure between $500,000 and $600,000. Its current valuation remains unknown.
MakerDAO Votes to Hold GUSD in Reserve
Voters on DeFi giant MakerDAO’s governance forum have signaled a preference for keeping Gemini’s GUSD stablecoin on Maker’s reserve. At the time of writing, 77% of the community was in favor of retaining the GUSD ceiling at $500 million, while 22% voted to decrease it to zero.
Concerns around Gemini’s exchange business prompted a discussion on whether to change the amount of GUSD held in Maker’s reserve last week.
“Drama is always worrying in CT, but Gemini's willingness to reach out to the maker community has set a high bar that is refreshing,” wrote a Maker delegate on Wednesday.
Texas Considers Adding Bitcoin as an Authorized Investment
The state of Texas is considering a proposal to make Bitcoin an authorized investment asset. A working group on blockchain matters put forth an 84-page document to Texas lawmakers on Wednesday, with a series of recommendations. These included a state investment into the leading digital asset, as well as tax breaks for Bitcoin mining companies and Bitcoin education in schools.
Texas has grown into a hub for Bitcoin mining operations over the last few years, with the state offering favourable regulations and cheap electricity. The state’s independent power grid has made it home to some of the largest mining cities in North America, including Riot Blockchain.
ConsenSys Lays Off 11% of Staff
Blockchain infrastructure firm ConsenSys laid off 11% of its workforce on Wednesday. In a letter posted to the website, CEO Joseph Lubin confirmed that the round of cuts had impacted 96 employees at the firm.
Lubin attributed the decision to a challenging macroeconomic environment, against the backdrop of “poorly behaved CeFi actors” in the crypto space, which he said had further exacerbated the distrust and pullback from market participants.
The company behind MetaMask and Infura plans to reduce operating expenses and increase the focus on its existing product teams.
On Unchained Premium
Coinbase Was Fined $100M - Why?
In Other News…✍️✍️✍️
American CryptoFed DAO LLC, which the Securities and Exchange Commission (SEC) is trying to prevent from registering and selling tokens, stated that the regulator has not been responsive to its complaints.
Celsius is trying to collect the remaining $6 million from an $8 million investment commitment made by VC firm Fabric Ventures for the lender's series B round.
The experimental mint for Sewer Pass by Bored Ape Yacht Club generated over $1.3 million worth of ETH in trading volume within an hour of its launch.
The Giving Block, a marketplace for crypto donations, reduced its workforce by approximately 12%.
Prominent venture capitalist Tim Draper is introducing a web3 deals syndication platform called Draper Round Table.
The merger between GRIID, a Bitcoin mining company, and a special purpose acquisition company (SPAC) was delayed once again.
Today in Crypto Adoption...
EY's Nightfall, a system that enables companies to conceal the information of transactions on the Ethereum blockchain, reached its final phase of production readiness for deployment on the Polygon network.
The Central African Republic established a committee to incorporate Sango coin, the country's national cryptocurrency launched in July 2022, into its national economy.
The $$$ Corner…
Flashbots, an Ethereum infrastructure provider, is said to be in talks with potential investors about obtaining funding of up to $50 million at a valuation of $1 billion.
Ulvetanna, a zero-knowledge proof startup, garnered $15 million in a seed funding round.
Syky, a digital fashion brand, raised $9.5 million in a Series A funding round.
Circle Ventures participated in a $4 million seed funding round for Obligate, a platform focused on blockchain-based debt.
Blockchange Ventures and Fenbushi Capital co-led a $3.2 million round for DeFi-focused startup Blue.
Metahood, a metaverse-focused startup, closed a $3 million seed round.
What Do You Meme
📈 Your Market Update 📉
BTC is down 2.07%, trading at $20,791
ETH is down 3.17%, trading at $1,527
BTC dominance: 40.38%
Crypto market cap: $992 billion
*All data as of today, 5 am ET
Recommended Reads
Alchemy’s Q4 Web3 development report
FTX Founder Sam Bankman-Fried Gamed Markets, Crypto Rivals Say by Emily Flitter and David Yaffe-Bellany from The New York Times
Chainlink on why stablecoins hold the key to crypto adoption:
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