6 Burst results for "Genesis Capital"
CoinDesk Podcast Network
"genesis capital" Discussed on CoinDesk Podcast Network
"That they represent a choice. They do not, and this latest round of debt ceiling drama that will inevitably end in an increase until they run out of money once again and we go through another round of this kabuki nonsense. It's just the latest piece of evidence that we are being dangerously misled at a civilizational level. The straight take on this one comes from coin desk, linked in the show notes, my editorializing draws some inspiration from zero hedge but is entirely my own thoughts. And zero hedges also linked in the shows. In other news, digital currency group that are known as DCG missed a $630 million payment O2 genesis last week. Gemini CEO Cameron winklevoss is threatened to sue DCG CEO Barry silbert and the company over the repayment of a $900 million loan after genesis, a DCG entity filed for chapter 11 bankruptcy, amid allegations of mixed funds, and ongoing disputes about the loan repayments. The U.S. Securities and Exchange Commission better known as the SEC has accused both firms of selling unregistered securities through geminis earned program. In both genesis and coin desk, by the way, are owned by DCG. While Gemini and DCG are still in discussions, if no deal is reached, Gemini and other parties are proposing an amended reorganization plan with genesis that doesn't require its parent company's approval. That's according to an update on Gemini's site, quote, consideration will be based in part on whether the parties believe DCG will engage in good faith negotiations on a consensual basis. Gemini wrote, continuing DCG continues to be engaged with the various stakeholders in the genesis capital restructuring process pursuant to the 30 day mediation period entered by all parties on May 1st, a DCG spokesperson told coindesk. Gemini cofounder Cameron winklevoss has publicly accused DCG CEO Barry silbert of engaging in bad faith stall tactics. Meanwhile, Gemini is preparing to file a claim to seeking the return of over $1.1 billion in assets from genesis, for its over 200,000 earned users. Play last week, lawyers for genesis fall to allow their bankruptcy plan. If the court approves that, then they'll have until August 27th to file that plan and until October 26th for Gemini to accept it. And according to a January filing, genesis owes over $3.5 billion to its top 50 creditors, which includes Gemini among a number of other names. And finally, TBD, a division of Jack Dorsey's financial technology company block, normally known as square, has launched a new open-source toolkit for
The Crypto Overnighter
"genesis capital" Discussed on The Crypto Overnighter
"Good evening and welcome to the crypto overnighter. I'm nicodemus and I will be your host as we take a look at the latest cryptocurrency news and analysis. So sit back, relax and let's get started. And remember, none of this is financial advice. And it's 10 p.m. on Tuesday. May 16th, 2023. And welcome back to the crypto overnighter where we have no sponsors, no agenda, and no BS. The crypto industry was significantly affected by the bank runs of 2022. The collapse of several major players in the ecosystem triggered these runs. A recent Federal Reserve bank of Chicago study highlighted the principle elements and triggers that intensified the crypto crisis. Large withdrawals by major crypto holders and institutional accounts on centralized exchanges were identified as the critical factors. This led to a liquidity crisis and that crisis ultimately resulted in the bank run. The first major issue was the collapse of Terra. This event led to a significant number of customers withdrawing their funds from crypto lenders associated with the ecosystem. In the 11 days following terrorist collapse, Celsius and Voyager digital experienced 20% and 14% customer fund outflows. Now, it's worth noting that Celsius had previously invested nearly a $1 billion in terrace algorithmic stablecoin, which ultimately failed. The second significant event was the town fall of three arrows capital in July of 2022. High customer outflows also marked this event. Celsius and Voyager digital experienced another round of outflows. This time, ten and 39%, respectively, due to their exposure to the now bankrupt three AC. Now three ACs failure had a ripple effect throughout the crypto industry. Several firms invested billions in crypto assets in the hedge fund. Genesis capital had provided loans to three AC totaling around $2.4 billion. BlockFi, and we'll be talking about the mode a bit here. They provided $1 billion. Voyager digital provided 350 million 15,250 Bitcoin. Celsius provided around $75 million. So when three AC failed, that led to a significant crisis. Now the third significant event was the collapse of FTX in November of 2022. News of this financial instability led to over 37% of customer funds being withdrawn from the crypto exchange. Following FTX is downfall, genesis and BlockFi customers withdrew around 21 and 12% of their investments. While these failed crypto platforms had a large retail customer base, the withdrawal funds by institutional clients led to a major crisis. Before June 9th, 2022, several institutional clients had contributed funding of 1.9 to $2 billion to Celsius. Owners of large accounts with investments over $500,000 withdrew funds at the fastest rates and proportionately more quickly than other account holders. For instance, account holders with more than a $1 million in investments made up 35% of all withdrawals at Celsius. The FBR's research report showed that while large customer withdrawals did accelerate the crisis, the real issue was the high risk investments offered by crypto lending platforms. Unlike traditional banks, these platforms offered no security or insurance against failures. Which led to widespread customer panic. All right, folks, buckle up, because I don't understand their logic at all. Now, I don't know about you, but I've been watching this whole silvergate Silicon Valley bank signature first republic debacle, unfold like a slow motion train wreck. These banks were supposed to be the pillars of our financial community. They were sacrificed. They were left out in the cold, and they were left out in the cold by the very institution that's supposed to have their back. Why? Because they had the audacity to be friendly with crypto. You heard me. They dared to embrace innovation to look to the future and for that they were left to crumble. And now the government and all its infinite wisdom had a golden opportunity to step in and save the day. We had this shiny new fund just sitting there waiting to be used. But did they use it to save signature and first republic? No, they did not. Instead, they chose to sacrifice those banks on the altar of their anti crypto agenda. And let's not forget about the collateral damage here. We're talking about families, businesses, people had nothing to do with crypto, who are now left picking up the pieces. It's like watching a surgeon perform a heart transplant with a chainsaw. It's messy, it's unnecessary and the patient is left in worse shape than before. So here's a thought. How about next time, instead of playing political games with people's livelihoods, you just do your job and protect our financial institutions. What? Hey, that's just what I think. The U.S. securities exchange commission has recently challenged coinbase's assertion that the digital asset industry requires a new regulatory framework. The SEC has urged an appeals court to dismiss coinbase's plea for more specific, regulatory guidance tailored to the digital asset industry. Gosh, why would they want that? In an escalating legal battle, coinbase submitted Amanda best petition to the U.S. Court of Appeals for the third circuit last month. This petition sought to compel the SEC to respond to their initial request. Coinbase initially filed this petition with the SEC in July of 2022. So it's been a while. However, the SEC has yet to decide on the petition. It has stated that it is still considering the filing. The regulatory body has received over 1600 comments on the matter. With coinbase contributing three of those comments. The SEC has also pointed out that the process of considering new rules or amendments to existing regulations does not prevent it from enforcing the current regulations. This statement came in response to coinbase's expectation of a reply within less than a year. While the SEC has taken up to 5 or ten years to respond to petitions in the past. The SEC's stance on the matter has sparked a debate on the need for regulatory clarity in the rapidly evolving digital asset industry. As the industry grows and innovates, this need for clear and effective regulation becomes increasingly important. This ongoing dispute between coinbase and the SEC serves as a reminder of the complexities and challenges involved in regulating this new and dynamic industry. Gensler, the chair of the SEC, recently voiced his concerns about the state of the crypto markets. He believes these markets are generally non compliant and are based on a false decentralization narrative. His views were shared during a Q&A session at the 27th annual financial markets conference hosted by the Federal Reserve bank of Atlanta. Gensler said that his main concern lies in the belief that the crypto markets are built on a false decentralization narrative. He argues that the most decentralized platforms or protocols are in fact centralized around a few operators in some way. This raises questions about the transparency and the fairness of these platforms, which are vital aspects of any well regulated financial market. The SEC's dispute with coinbase was also discussed at the conference. Now the SEC served coinbase with a well noticed, probably based on the suspicion that coinbase may be marketing unregistered securities. At least that's what they'll tell you. Now in response, coinbase sued the agency and attempt to force it to create new rules for the crypto industry, which is the genesis of this whole thing. Now gensler emphasized the need for compliance in the crypto industry. He stated that the SEC's rules about what it means to be an exchange, a broker dealer and adviser of custody and assets and how to register a security offering are already in existence. He added that nothing about new technology makes it inconsistent with the public policies that Congress has already laid out. Gens are also noted that the increasing interconnection between traditional finance and crypto exists. He pointed out that three of the four recent bank failures in the U.S. had significant crypto books. In fact, we
Unchained
"genesis capital" Discussed on Unchained
"Sam bankman freed, the founder of the bankruptcy crypto exchange, FTX, has intensified his legal fight, petitioning a Manhattan federal judge to dismiss the majority of criminal charges against him related to the exchanges collapse. Ben Qin fried's legal counsel argued on Monday that several accusations, including fraud, conspiracy, campaign finance law violations, and money laundering, do not adequately constitute an offense. The move seeks to nullify ten of the 13 charges against the FTX founder, leaving only allegations of conspiracy to commit commodities fraud, securities fraud and money laundering. The attorneys further claimed that the U.S. government's original indictment was a, quote, classic rush to judgment, amid a turbulent crypto market that saw multiple bankruptcies. They also asserted that the team handling FTX bankruptcy proceedings, led by the current CEO John ray the third, has been co opted by the prosecutors to help gather evidence. The dismissal request will be heard by U.S. district judge Lewis Kaplan on June 15th. Meanwhile, banquet frees former associates, including ex Alameda research CEO Caroline Ellison, an FTX cofounder Gary Wang, have pleaded guilty to multiple federal charges in our cooperating with the ongoing investigation. Bittrex bites the bankruptcy bullet amidst SEC pressure. Bitrex, the Seattle based crypto exchange, filed for a chapter 11 bankruptcy this week, following the company's decision to shutter its U.S. operations amidst ongoing legal challenges by the security and exchange commission. The regulator accused the company of operating an unregistered securities exchange, though bittrex has denied the allegations stating quote, securities were not offered or traded on bitter X. The company says U.S. customers funds remain secure and that repayment is a priority. Metrics is attorney sushil Kirby, stated that the company had sufficient crypto holdings to fully repay all remaining customers. A fact underscored by the approval of a unique bankruptcy loan. The Delaware bankruptcy court permitted bittrex to borrow $7 million in Bitcoin from its parent company, akilah holdings. Chapter 11 filing does not affect its international operations under bitrex global, which continues to service customers outside the U.S.. Nevertheless, the U.S. Treasury Department's office of foreign assets control or OPEC is listed as the company's largest unsecured creditor with a debt exceeding $24 million, tied to a settlement over alleged sanctions violations. As you see, also features among the creditors, with the claim amount yet to be determined, pending ongoing litigation. Regulatory scrutiny triggers strategic retreat for major crypto market makers. This week, Bloomberg reported that increased regulatory pressure on digital asset trading in the U.S. has prompted renowned market makers, Jane street group, and jump crypto to scale back their crypto operations. On Tuesday, Bitcoin began trading at a premium on binance U.S., a phenomenon that industry experts suggest could be linked to these drops in market making. Industry analysts are also raising red flags regarding the potential impact of this strategic retreat on Bitcoin training liquidity. Traditionally, market makers like Jane street and John crypto have provided stability and depth to the crypto markets. They reduced involvement could exacerbate existing liquidity challenges, particularly in the Bitcoin market. Bitcoin's network congestion triggers withdrawal halt and BRC 20 reconsideration. In the wake of substantial Bitcoin network congestion, binance, the world's largest crypto exchange, temporarily suspended Bitcoin withdrawals. This move followed an influx of over $180 million and a surge in unconfirmed Bitcoin transactions. Reaching a record of 488,000. Critics like swan Bitcoin analyst Sam Callahan argued that binance either, quote, either quote, it didn't want to pay up with higher fees or didn't want more Bitcoin leaving the exchange. The rising transaction fees now up 300% from last year are due to the proliferation of BRC 20 transactions on the Bitcoin ordinals protocol. These transactions account for over half the Bitcoin network's activities and have led to calls from Bitcoin core developers to potentially reject all BRC 20 token transfers. One developer, Ali Sharif, proposed a code based change to address this issue or the introduction of a runtime option to delete all non standard taproot transactions, including BRC 20. Adding to the network's challenges, the ordinal system, utilized for inscribing digital collectibles onto the Bitcoin blockchain, recently encountered a bug that disrupted its numbering system, ordinals creator Casey rotter Moore, admitted to uncertainties about the best course of action for addressing the bug. Aragon association curtails ANT voting rights. A week after booting several members who questioned leadership from its Discord channel, the Aragon association has decided to repurpose its decentralized autonomous organization or Dao. The association has now transitioned its focus toward a new grants program aimed at developers of decentralized applications and other Dow creators. Lewis quenda, a cofounder also called for $30 million in token buybacks. These moves come in response to the activities of the risk free value or rfv raiders. A group of activist investors whose members include arca capital management and which has become active in Dallas, whose treasuries are larger than the market caps of their coins. The association considered their activities to be potential quote financial attacks. Critics have questioned the Aragon association's motives and the lack of a community vote on these decisions. Arca for instance has called for more transparency and community empowerment. The association maintains that the repurposing of the Dow is a necessary step for the project security and enhancement of its mission. Digital currency group wrestles with genesis bankruptcy. Tuesday was the due date for DCG first loan repayments to its insolvent lending subsidiary genesis capital. Instead of repayment that conglomerate announced that it is seeking to refinance its obligations to genesis and raise capital. DCG and genesis are currently engaged in a 30 day mediation period with stakeholders, following several creditors abandoning a previous agreement. Genesis had first filed for bankruptcy in January, owing at least $3.5 billion to its creditors. As the clock ticks toward the end of May, DCG and genesis are racing to agree to a restructuring plan to salvage the situation. If you are a little lost with this topic, don't miss last Friday's show of unchained with rum alo alia. Grayscale targets expansion with new ETF proposals. Grayscale investments, the world's largest digital asset manager, announced plans to launch three new exchange traded funds and create a new entity,
Unchained
"genesis capital" Discussed on Unchained
"On April 25th, DCG announced via a statement on Twitter that a subset of genesis capital creditors have walked away two months after what they call a comprehensive settlement was submitted to the bankruptcy court. I spoke to a genesis creditor who is in this group and they said they felt that this was mischaracterized that the two sides didn't have an agreement, but just a framework for what a deal could be. This person also said that this framework had been made with limited financial information and that the group revised the terms based on new information and analysis. Either way, genesis requested a mediator to help resolve the issue. Meanwhile, DCG owes genesis $630 million next week. So what do all these recent developments mean for genesis and DCG? Well, it's an unfortunate mess. So at the outset of the petition, the council presenting BCG and genesis as well as the creditors informed the judge they expect a speedy resolution because they've been working at this. And this is a step back. There was a term sheet that was published that outlined the key terms of the deal. It was a framework for the deal. As you mentioned, the ad hoc clitoral group has pulled back or walked away from that. As you said, due to new information, there's a lot tongue packing what information the Lawrence as well as still what significant information is outstanding. So how are you looking at all these developments? What do you think is likely to happen at this point, especially given DCG debts to genesis next week? Do you think it's likely they'll be able to pay them? I don't believe they'll have the ability to make the debt payments. There are $630 million that do on dates or anything from May 9th, may 10th, and may 11th. $631 million in BCG reportedly paid off the senior credit facility to Eldridge, recently, that means they have less cash to make these obligations, but we also don't have as much information. We do not have access to the DCG balance sheet. We know that they publish financials recently, they've generated more revenue because the price of Bitcoin has increased. However, even the free cash flow one would expect that grayscale would generate is insufficient to plug the hole. I estimate something like a 117 million in cash flow from grayscale. That's just not enough to plug a $630 million hole. Here are the other reasons too. You know, you have some reporting that the CFO and Michael crane's left. That is a negative sign that's a red flag. You're also seeing DCG port codes like Luna, there are various executive departures. We haven't seen new venture investments from DCG, or stopped entirely. The three ways to pug off plug a hole either you generate capsule from operations again. I don't see enough of that there from grayscale. Second, you sell assets. There's been no sale of any of these prized jewels of DCG, third as you do a capital arrays, haven't seen that announce, and they haven't done a debt refinancing. So unless we see some announcer reporting around that, I just don't see how they're going to make the debt payment. And so if that's the case, then it looks like what a bankruptcy for DCG would also be on the table. Well, they'll attempt to do an out of court workout. It's very similar to what happened when genesis announced that they're not honoring withdrawals. So there's no imminent bankruptcy you attempt to do an out of court workout. You tempted to negotiate with the creditors and arrive after favorable terms, but guess what? That's what they have been doing over the last several months. So this is they'll have to continue to negotiate and there's a strong interest of creditors have in preserving the ongoing value of DCG and seeking a settlement promptly, it's not an interest for creditors to hurt the ongoing concern of DCG. That doesn't help the creditors doesn't help DCG. And so what factors are you looking at to determine how likely it is that they will end up having to file. Well, let's let things unpack let's see what actually happens next week. I think the first thing I'd look for is main 9 is that Twitter million long payment made or not. If that's not made, none of those payments are going to be made. By the way, I don't think you're going to see a scenario where DCG makes partial payments. Either they husband and liquidity or they meet all their obligations. So may 9th is a key date to focus on. You know, let's see what happens there. And let's reassess. Also, we don't access to the contracts and the loan agreements. So we're making the best judgments we can based on publicly available information. I should also say that I'm not a party to any of these transactions, not a credit genesis on offer financial advice. I'm simply trying to get a point of view on what this does for the short GBTC, the spreads, the price of Bitcoin, et cetera. So one other wrench that got thrown into the works is that late Wednesday, FTX signaled its intent to try to claw back almost $4 billion in funds from genesis. How does that affect matters? Right, that's an unfortunate surprise. It's a surprise because FTX several months ago under John reigns, he had a slide indicating the course of action he would take to seek recoveries and the genesis claim was not on that slide. That's one. Second, it's been a lot of time. Months after the fast. Of course, the last day to fall any claims is the what's called a bar day that's May 25th, and so we've seen this claim come in for $3.9 billion.
Unchained
"genesis capital" Discussed on Unchained
"Today's best is ram alu walia, CEO and founder of luma wealth. Welcome rom. Thanks for having me, Lori. Good to see you again. On April 25th, DCG announced via a statement on Twitter that a subset of genesis capital creditors have walked away two months after what they call a comprehensive settlement was submitted to the bankruptcy court. I spoke to a genesis creditor who is in this group and they said they felt that this was mischaracterized that the two sides didn't have an agreement, but just a framework for what a deal could be. This person also said that this framework had been made with limited financial information and that the group revised the terms based on new information and analysis. Either way, genesis requested a mediator to help resolve the issue. Meanwhile, DCG owes genesis $630 million next week. So what do all these recent developments mean for genesis and DCG? Well, it's an unfortunate mess. So at the outset of the petition, the council presenting BCG and genesis as well as the creditors informed the judge they expect a speedy resolution because they've been working at this. And this is a step back. There was a term sheet that was published that outlined the key terms of the deal. It was a framework for the deal. As you mentioned, the ad hoc clitoral group has pulled back or walked away from that. As you said, due to new information, there's a lot tongue packing what information the Lawrence as well as still what significant information is outstanding.
Unchained
$630M Due Next Week: Is DCG at Default Risk?
"Today's best is ram alu walia, CEO and founder of luma wealth. Welcome rom. Thanks for having me, Lori. Good to see you again. On April 25th, DCG announced via a statement on Twitter that a subset of genesis capital creditors have walked away two months after what they call a comprehensive settlement was submitted to the bankruptcy court. I spoke to a genesis creditor who is in this group and they said they felt that this was mischaracterized that the two sides didn't have an agreement, but just a framework for what a deal could be. This person also said that this framework had been made with limited financial information and that the group revised the terms based on new information and analysis. Either way, genesis requested a mediator to help resolve the issue. Meanwhile, DCG owes genesis $630 million next week. So what do all these recent developments mean for genesis and DCG? Well, it's an unfortunate mess. So at the outset of the petition, the council presenting BCG and genesis as well as the creditors informed the judge they expect a speedy resolution because they've been working at this. And this is a step back. There was a term sheet that was published that outlined the key terms of the deal. It was a framework for the deal. As you mentioned, the ad hoc clitoral group has pulled back or walked away from that. As you said, due to new information, there's a lot tongue packing what information the Lawrence as well as still what significant information is outstanding.