Genesis bankruptcy filings – latest: Crypto lender to file for bankruptcy amid ‘major’ DoJ action


Crypto Outlook at the World Economic Forum

Cryptocurrency firm Genesis Global Capital plans to file for bankruptcy early this week, Bloomberg reported today.

The FTX cryptocurrency exchange was expected to file for bankruptcy since the fall of November.

Meanwhile, the US Department of Justice announced the arrest of Anatoly Legkodimov, the Russian operator of the China-based Bitzlato cryptocurrency exchange. According to the DOJ, Bitzlato was a cryptocurrency exchange that allegedly worked with Hydra Market, a darknet black market that engages in illegal trading and acts as a safe haven for ransomware attackers.

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 Sam Bankman-Fried, the former CEO of cryptocurrency exchange FTX, faces charges of money laundering, securities fraud and conspiracy. The DOJ emphasized that criminals using the crypto space for fraud and other criminal activities should know that the agency will use “every means” to combat their activities.

Mr Bankman-Fried’s company – long considered one of the biggest cryptocurrency exchanges along with Binance – declared bankruptcy after allegedly using clients’ funds as investment capital and losing them.

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Cryptocurrency companies reduce Davos visibility after a year of losses, scandals

In recent years, cryptocurrency companies have dominated the Davos World Economic Forum, but this year they have reduced their visibility, CNBC reports.

With the exception of a single, orange crypto-advertising sports car, cryptocurrency company ads have reportedly gotten less attention this year.

An NFT store that sold digital tokens along with images closed this year after asset prices fell significantly in 2022.

Cliff Sarkin, head of strategic communications at Casper Labs, told the speech that the remaining cryptocurrency businesses at Davos are “substantial projects” and “real deals.”

Graig GraziosiJanuary 19, 2023 07:00

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FBI says it will ‘relentlessly’ pursue crypto criminals

FBI Deputy Director Brian Turner said the law enforcement agency will “relentlessly pursue” criminals operating in the crypto space following the arrest of Anatoly Legkodimov, the founder of the Bitzlato cryptocurrency exchange.

According to the DOJ, “the FBI will continue to pursue actors who attempt to hide criminal activity behind keyboards and evade law enforcement using tools such as cryptocurrency.” “We will work relentlessly with our federal and international partners to disrupt and dismantle these types of criminal enterprises. “Today’s arrest should serve as a reminder that the FBI will impose risks and consequences on those who engage in these activities.”

Mr. Legkodimov, a Russian citizen living in China, was arrested in Miami on Wednesday.

Graig GraziosiJanuary 19, 2023 06:00

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At the Davos World Economic Forum, financial leaders are abandoning cryptocurrency, insisting that traditional institutions are safe

Speaking at the Davos World Economic Forum, a number of financial leaders made it clear that they do not trust cryptocurrencies, insisting to attendees that traditional investment and banking institutions are still safe to use.

Singapore’s senior minister, Tharman Shanmugaratnam, said cryptocurrencies were “a bit crazy”, prompting laughter from the audience. Iris Market IQ.

UBS chairman Colm Kelleher said regulators were weakening in their ability to police “non-bank” entities, which include cryptocurrencies.

“Regulators have — respectfully — turned a blind eye to the non-banking sector,” Mr Kelleher said, according to Reuters.

Francois Villeroy de Galhau, a member of the European Central Bank’s Executive Board, said “we need to rush some urgent non-bank regulation, starting with cryptos.”

Graig GraziosiJanuary 19, 2023 04:59

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The DOJ said the head of Bitzlato knew Hydra’s operations were illegal, that customers were “fraudsters.”

The Department of Justice alleged that Bitzlato’s founder, Anatoly Legkodimov, was aware of the illegal nature of Hydra Market transactions and knew that its users were using false identities to transact.

“Bitzlato’s customers routinely used the company’s customer service portal to request support for transactions with Hydra, which Bitzlato frequently provided, and in conversations with Bitzlato employees admitted to trading under assumed identities,” the DOJ said. “Furthermore, Legkodymov and other managers of Bitzlato knew that Bitzlato’s accounts were full of illegal activity and that many of its users were registering under other people’s identities.”

According to internal chat logs obtained by the DOJ, Mr. Legkodymov wrote to a colleague that his clients were “fraudsters.” Bitzlato officials reportedly warned the founder that its users were “drug addicts [at Hydra]” and “drug dealers”.

Graig GraziosiJanuary 19, 2023 04:00

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ICYMI: The cryptocurrency market cap briefly hit $1 trillion before taking a dive

Earlier today, the cryptocurrency market cap hit $1 trillion for the first time since November, just ahead of the 2022 sell-off and FTX collapse.

It’s unclear whether the decline was a result of the DOJ’s announcement, traders selling at higher prices, or both.

Despite the decline, Bitcoin has remained popular among investors, gaining 30 percent this year.

Graig GraziosiJanuary 19, 2023 03:00

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What was ‘Hydra Market’?

What was ‘Hydra Market’, the dark web black market that is one of Bitzlato’s biggest customers?

According to the Department of Justice, Hydra Market is “an anonymous, illegal online marketplace for drugs, stolen financial information, fake IDs, and money laundering services, the world’s largest and longest-running dark web marketplace.”

“Hydra Market users exchanged more than $700 million in cryptocurrency with Bitzlato directly or through intermediaries before Hydra Market was shut down by US and German law enforcement in April 2022,” the DOJ wrote. “Bitzlato also generated over $15 million in ransomware revenue.”

Graig GraziosiJanuary 19, 2023 02:00

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ICYMI: Bitcoin Price Drops Amid Major DOJ Cryptocurrency Announcement

The price of bitcoin fell 5 percent in an hour after the US Department of Justice announced plans to impose major international measures on the cryptocurrency.

The world’s leading cryptocurrency fell from $21,500 to around $20,500, reversing an uptrend that had seen its price rise by nearly a third since the start of the year.

Read more from of The Independent Anthony Cuthbertson in the following story…

Graig GraziosiJanuary 19, 2023 01:00

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Economist “Dr Doom” at Davos says 90 percent of cryptocurrency is a scam

Dr. Nouriel Roubini — sometimes nicknamed “Doom” for his dire economic predictions — said Wednesday during the Davos World Economic Forum that “90 percent of cryptocurrency is a scam.”

“FTX and SBF are not the exception – they are the rule,” he said Yahoo Finance event.

He went on to predict the coming bust.

“90% of cryptocurrency is a scam. It is a criminal case,” he said. “All real bubble Ponzi schemes are collapsing.”

Graig GraziosiJanuary 19, 2023 at 00:00

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ICYMI: Crypto crime ring shut down in ‘significant blow’ to fraudsters, DOJ announces

The US Department of Justice has announced that it has dealt a “significant blow” to the crypto crime landscape after arresting a Russian national who allegedly built a major criminal online platform.

According to the DOJ, cryptocurrency exchange Bitzlato processed more than $700 million in illicit funds by advertising its services to users “known as fraudsters.”

The alleged founder, Anatoly Legkodimov, was arrested in Miami on Tuesday. Read more from of The Independent Anthony Cuthbertson in the following story…

Graig GraziosiJanuary 18, 2023 at 11:00 p.m

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Crypto exchange targeted by DOJ responds ‘oops, sorry’ to customers on automated social media channel

Bitzlato, the China-based cryptocurrency exchange whose CEO Anatoly Legkodimov was arrested by the DOJ in Miami on Tuesday, is responding to its customers with an “oops, sorry” along with a sad face emoji via an automated message in the Telegraph. NBC News.

The DOJ alleges that the company frequently dealt with Hydra Market, an illegal digital marketplace and haven for ransomware attackers. The agency alleged that Mr. Legkodimov knew his clients were involved in criminal activity and used aliases to hide their identities.

Graig GraziosiJanuary 18, 2023, 9:30 p.m



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