22 Burst results for "Genesis Global Capital"
Unchained
"genesis global capital" Discussed on Unchained
"Publications include The Wall Street Journal, coin desk, and vincenta, an athletes like Tom Brady and David Ortiz were also on the list as with supermodel giselle bundchen. Sam benkin fried invested $400 million into modulo capital. According to The New York Times, medulla capital and obscure crypto trading firm received $400 million from penguin freed prior to the FTX collapse in November. The firm was founded in March 2022 and received one of SPF's largest investments during the attention of investigators. The transactions took place in the third and fourth quarters of 2022. The founders of medulla capital reportedly had close ties to SPF, one of them xiaoyun lily Zhang had previously allegedly been romantically involved with bank and freed. Is now a key focus of the investigation by federal prosecutors into bankman fried and the exchange. Genesis says it may resolve the bankruptcy soon. Crypto lender genesis global capital expressed confidence that it will be able to resolve its disputes with creditors this week. With a goal of emerging from chapter 11 bankruptcy by the end of May. According to Reuters, during a hearing in Manhattan, genesis lawyer Sean O'Neill said, sitting here right now, I don't think we're going to need a mediator. I'm very much an optimist. Brian Rosen, a lawyer for creditors who are owed $1.5 billion in claims, agreed, we are getting closer. The company filed for bankruptcy protection on January 21st, two months after it halted withdrawals and new originations. The company listed just over $5 billion in assets and liabilities in its bankruptcy filing and said that it owed more than 100,000 creditors at least $3.4 billion. Gemini lays off more employees. Gemini, the crypto exchange battling genesis laid off 10% of its staff, according to an internal memo seen by the information. This is the third round of cuts at the company in the past 8 months. The cofounder of Gemini Cameron winklevoss informed the staff known as astronauts about the layoffs via a message on slack. He stated that the persistent negative macroeconomic conditions and unprecedented fraud in the industry left the company with no other choice. Gemini employees are not the only ones affected by genesis as fallout. Luno, a digital currency group owned a crypto exchange, also laid off 35% of its workforce. Bitcoin Jesus gets sued. Genesis is suing roger ver for $20.9 million in damages. Vera, the CEO of Bitcoin dot com has also been long known as Bitcoin Jesus. The lender claims veer failed to settle crypto options transactions before the expiry date. This is not the first lawsuit against veer, as coin flex, a crypto exchange, also filed a lawsuit against him in July for failing to repay the debt on his margin position. In a Reddit post, veer stated that he has enough money to pay the debt, but that he does not feel obligated to do so. Celsius plans to issue a token to repay creditors. Bankrupt crypto lenders Celsius is planning to pay back creditors by issuing a new token. According to a recent report from Bloomberg, the attorney for Celsius, Ross M quest in it, informed a bankruptcy court that the new token would be part of a payout plan from a reorganized company that is properly licensed. However, this plan needs to be approved by a creditor committee before it can move forward. According to coin desk, the proposed token is called asset share token, AST. Creditors who are owed an amount of crypto above a certain threshold would receive AST, which they can either retain for potential dividends or sell on the marketplace. The platforms remaining customers would be given a one time distribution of liquid crypto assets. The lawyers for Celsius, the lawyers for Celsius, also stressed that despite the recent ruling that assets in Celsius earn program are the property of the exchanges estate and not of customers, earn customers would be treated like everyone else in the eventual recovery of assets. Additionally, the mining division of Celsius plans to temporarily house 20,000 rigs that it is currently retrieving from core scientific, which could put the troubled firm founded by Alex mashinsky in a better position. Binance makes a mistake in its accounting. Binance, the world's largest crypto exchange, acknowledged that it made a mistake in storing token reserves and customer funds in the same wallet. As per a Bloomberg report, the reserves for nearly half of the 94 tokens issued by binance, known as B tokens, were stored in a single wallet called binance 8, according to the exchange's website. This wallet contains more assets in reserve than are required as collateral for the issued B tokens, indicating that it also contains user assets. Binance issues its own version of eth, USD C, and USD T to be used on the B and B chain, which are supposed to be backed by one to one reserves of the currencies they are based on. However, mixing of B token collateral with customer assets is against it binance's own guidelines. Earlier this week, binance also announced that its swift banking partner signature bank will no longer support transactions under $100,000 in value.
Crypto News Alerts | Daily Bitcoin (BTC) & Cryptocurrency News
"genesis global capital" Discussed on Crypto News Alerts | Daily Bitcoin (BTC) & Cryptocurrency News
"You know what I mean? How many Bitcoin would you take advantage of if you had that price action today, it'd be insanity to say the least. But nonetheless, welcome everyone just tuning in. Now let's discuss the latest what's going on with a new lawsuit between genesis and DCG, the digital currency group who wear Barry silbert is the owner, trouble crypto company, DCG, is facing more legal issues as it subsidiary genesis capital, got slapped by yet another new class action lawsuit, the group of genesis creditors follow the securities class action lawsuit against ECG and its founder CEO, Barry silver, alleging violations of the federal security laws, the lawsuit was filed by Connecticut based law firm, silver, globe, and Kate tell on behalf of individuals and entities who entered into digital asset lending agreements with genesis. The law firm is known for handling major industry lawsuits, including a class action suit, filed against coinbase back in March of last year, the new complaint against ECG and silver alleges that genesis engaged in unregistered securities offerings in a violation of security laws by executing lending agreements, involving securities without qualifying for an exemption from registration under the federal security laws, the lawsuit also alleges that genesis committed securities fraud through a scheme to defraud potential and existing digital asset lenders by making false and misleading statements and according to the plaintiffs, genesis intentionally misrepresented the financial condition of genesis violating section ten B of the United States, securities, exchange act, quoting their lawyer here. The scheme to defraud was carried out, according to the complaint, in order to induce prospective digital asset lending to loans of digital assets to genesis global capital and to prevent existing lenders from redeeming their digital assets. Now founded in 2015, DCG is a Connecticut base crypto firm that serves as a parent company of multiple digital asset and blockchain focus, subsidiaries, including genesis, digital asset manager, grayscale investments, crypto mining firm foundry, and crypto media outlook, outlets, coindesk. Now DCG is current CEO silbert maintains a controlling 40% equity stake in the firm and also serves as a chairman of his board of directors. The news comes amid genesis going through its first bankruptcy hearings January 23rd after the firm filed for bankruptcy, January 19th, the bankruptcy filing came a few months after genesis halted withdrawals on November 16th as it became unable to honor redemption request amid the bear crypto market. Now Gemini, a crypto trading platform, founded by the winklevoss brothers, is one of the biggest creditors of genesis with the firm reportedly owing $900 million to Gemini's clients. Now on January 20 20th, Gemini cofounder, Cameron winklevoss, took to Twitter to declare that the firm has been preparing to take legal direct action against DCG various silver and others who share responsibility for the fraud and at this time it appears to be unclear whether Gemini is a part of the lawsuit filed by the law firm did not immediately respond to requests for comment, but there you have it.
Bloomberg Radio New York
"genesis global capital" Discussed on Bloomberg Radio New York
"Dot com slash interest rates to learn more rates subject to change. At first we start with a looming government lawsuit against Google, Bloomberg Steve rapaport joins us live with the story, Steve good morning. Good morning, Karen and Nathan, the Justice Department alleges alphabet's Google uses its size and technology to muscle out competition from a market that generates more than $626 billion a year globally. Google disputes the government's claim, arguing rivals like Amazon meta and Microsoft also maintain a strong presence in online advertising. The lawsuit would be the DoJ's second antitrust case against alphabet. Live in New York, I'm Steve rappaport, Bloomberg, daybreak. See, thanks and geopolitics this morning sources tell us that the U.S. suspects some Chinese state owned companies may be providing assistance to Russia's war effort in Ukraine, the administration's reviewing the evidence to determine its significance. Let's turn to markets now, Nathan, the bullish church, a 2023 continues the NASDAQ coming off its best two day run since November and the S&P is up 12% from its October low. Still fiduciary, trust company, CIO Hans Olsen believes there's still risk ahead. Trends that we saw in four last year. We thought would bleed into this year. The reset of the price of money, concerns about where interest rates would top out. The rally that we've seen over the last three weeks or so fits that of a bear market rally, I'm not sure that we've necessarily seen the bottom yet. Certainly we're likely to see some more downside volatility. Hans Olsen with fiduciary trust says investors should prepare for an extended period of high interest rates. Meantime care we're seeing more job cuts across corporate America and Bloomberg's Dan Schwartzman joins us live with that. Good morning, Dan. Good morning, Nathan and Karen, another round of job cuts for Ford, the automaker eliminating 3200 jobs across Europe. It wants to cut costs to pour more money into electric vehicle production. Meantime, Bloomberg news has learned that Gemini the firm led by the winklevoss twins will lay off 10% of its staff, the third round of job cuts for the cryptocurrency exchange. Gemini trust has been unable to pay out funds to some of its account holders due to the bankruptcy of genesis global capital who is set to around $900 million to clients. Live in New York on Dan Schwartzman Bloomberg daybreak. All right, Dan, thank you. That's the 5 things you need to know to start your day, brought to you by interactive brokers. And we are again watching earnings crossing the Bloomberg we're hearing from Johnson & Johnson and its profit outlook for the year beating analyst estimates again we had heard from GE earlier its profit outlet for the year had missed and alys estimates. Futures this morning, they're lower S&P futures down a third of a percent down 13 points down features down a quarter percent or 86 points in NASDAQ futures down half percent or about 50, 6 points, and the ten year treasury of three 30 seconds yield 3.49% and straight ahead, we have your latest local headlines, plus a check of sports, and this is Bloomberg. All right, Karen, thank you to 6 31 on Wall Street and Michael Barr is here with more on what's going on in New York and around the world. Once again, good morning, Michael. Good morning, Nathan. More deadly gun violence in
The Breakdown
"genesis global capital" Discussed on The Breakdown
"To genesis, we left on Friday with the news that genesis global capital had filed for bankruptcy. The troubled crypto lender will now enter restructuring in order to find a way to repay creditors after the calamitous events of last year came to a head. In the first day motion filed with the bankruptcy court on Friday, genesis claimed that the firm had $5.1 billion in outstanding liabilities. They noted that although the collapse of FTX had affected them, their liquidity crisis was more to do with the run on deposits that ensured afterwards. At that time, customers demanded repayment of $827 million in loans, forcing the lending unit of genesis to halt withdrawals. Referring to the digital currency group, which is the parent company of both genesis as well as coin desk, the filings said the DCG was unable to backstop genesis during the run. Quote, at the same time, genesis corporate parent digital currency group or DCG and its very subsidiaries were also impacted by the market turmoil and did not have the liquidity to pay back the company on certain loans, adding pressure to the debtor's balance sheets. First day filings also showed that Gemini was by far the largest creditor of genesis with more than $700 million owed. a week's long public relations war, Gemini cofounder Cameron winklevoss threatened to sue DCG and CEO Barry silbert, if genesis fails to put forward a quote fair offer to creditors. In a nod to the acrimony among creditors, these Friday filings characterize the bankruptcy proceedings as a way to quote incentivize all stakeholders to move expeditiously towards a consensual resolution that avoids the costs and uncertainties of litigation. Now, genesis will continue to operate most of its non lending businesses, including derivatives, trading and custody, all of which are held in separate legal entities. There was also some confusion around the initial creditor list, which listed a multiple of crypto firms as un collateralized creditors. On Friday, as I think I mentioned, crypto trading firm Cumberland clarified that although it was listed as being owed 18 million by genesis, their inclusion in the creditor's list was quote misleading and incorrect information. They explained that in November, Cumberland held $18 million in loan crypto, which was fully collateralized by cash held by genesis, but on November 16th, the date when genesis halted withdrawals, Cumberland notified genesis that they were surrendering their cash and liquidating the loan crypto in accordance with the terms of their agreement. This liquidation process left an outstanding balance of around $46,000 owed to Cumberland rather than the 18 million shown in the creditors list.
Crypto Briefing
Crypto Lender Genesis Files for Bankruptcy
"5 p.m. Friday, January 20th, 2023. Crypto lender genesis files for bankruptcy. Digital currency group subsidiary genesis global capital has filed for bankruptcy protection. It owes over 3.5 billion to its top 50 creditors 3.5 billion in liabilities after months of uncertainty.
Bloomberg Radio New York
"genesis global capital" Discussed on Bloomberg Radio New York
"We also have the unknown of how much can financial assets take. We have something else in common. No small caps continuing to feel the pressure. We seek out the latest business news wherever we are, but deep drop in Asian equities overnight. U.S. futures also pointing to the downside. Bloomberg radio, the Bloomberg business app and Bloomberg radio dot com. Bloomberg, the world is listening. This is what mcday brake Ridley. So our top stories this morning, risks from rising interest rates to economic growth, keep risk appetizing check, fed Sean Williams says there's more work to do on cooling inflation. Crypto firm genesis global capital, files for chapter 11 bankruptcy in the southern district of New York. We'll have the details. Japanese inflation hits 4% for the first time since 1981, driven by further gains in energy and in food. And the Saudi foreign minister, prince Faisal tells us the U.S. continues to be Saudi Arabia's top security partner even as ties warm between the kingdom and China. Let's check back in with animal rulers. She joins us from our Hong Kong studio with all the updates. Spell. Thanks, Seth. Yeah, we're heading into the afternoon session here in Asia and we'll be the last one for the trading week ahead of that important lunar new year holiday. So we are seeing trading volumes looking quite thin already ahead of that trade is just to peeling away from their discs. But in terms of the trading themes, well, there's two big ones in play today. So first is the fed. We did hear from more fed officials basically laying the case for more restrictive policy ahead and the New York fed president John Williams was among the latest there. That stacks up, of course, against more signals of economic weakness coming through that we had in the economy and warnings as well on the outlook for corporate earnings. So off that we are seeing bond yields just ticking slightly high here and a lot of weakness coming through in the currency space as well. The Japanese yen, the yuan, the Korean won the Turkish lira all lower today against the greenback. But then the other theme to note is what is happening in China and still those prospects for reopening there that could hopefully try to cushion the downturn that we see in the U.S. and Europe and in the commodity space today gains for oil, iron ore, copper, other commodities, as well. In terms of the equities picture, paying a close eye or attention to the CSI 300 that is out of its lunch break, extending those gains up nearly 6 10% into the afternoon session, putting that into context, we are now on the cusp of a bull market in China. A lot of optimism, as I said, around that movement away from COVID zero restrictions of your change on now, looking at some of the biggest moves today, that is coming through in the consumer discretionary space in China. There is perhaps that this idea of a revenge consumer in China that could also help to drive that rebound there the recovery in sight. But as I said, really trade is already getting away from their desks for the break coming up. If you change on now, a quick check on the market so it will be shot into the coming week, a whole suite of them here in Asia, yousef away on Monday. All right, thank you for those details. That's about jewelers in Hong Kong. I want to get to another part of the market and that is oil. It's decided for a second weekly gain as optimism over stronger Chinese demand over shadows and weaker outlook and other major economies. At $86 a barrel, the Brent contract is back to where it started at the beginning of the year. Let's discuss some regional views with farook susa he's the VP of mino economics research at Goldman Sachs and a national Farouk, as you look at these energy prices, it is far above the fiscal break-even levels of the golf countries. How does this set us up for windfall in 2023? Now the use of good morning. Yeah, I mean, I think it's important to bear in mind that oil prices are inherently volatile if we were to adjust or chase our views on the gulf countries according to $10 wings in the oil price would be very, very busy indeed. Like you said, the oil price in this range, anything above 75 is a very comfortable area for the GCC to be. We're expecting significant fiscal surpluses across the board. The most important economy, or the largest society, the largest economy in the region, Saudi Arabia has a break-even in the mid 70s somewhere. So we're expecting things to continue to improve from a fiscal situation. I would add though, of course, that there's a significant amount of off budget spending coming in places like Saudi Arabia, that is in reflected in that fiscal break-even. And so the extent in the amount of resources available for investment in those off budget investments is going to be depending on how big the surplus is rather than just what it's going to break even is. For real, can I get you to weigh in on something briefly in terms of transparency and access to data when you look at this windfall and when you're trying to run your numbers, how does it compare to previous efforts, both in scale and in terms of being able to pull from all the right sources as it were? Well, in terms of the budget sector, when we look at the, for example, coming to Saudi Arabia once more, the data is there, the transparency has improved enormously over the past few years. We now have quarterly data in some countries we have monthly data. So I don't think in terms of the budget sector there are significant concerns as there were maybe ten years ago or 15 years ago. It was very difficult to get this. Where it's less transparent, of course, is in the off budget expenditure. So the mega projects or the Giga projects in Saudi Arabia, how much the PIF has been spending in those. These things are by their very nature. Difficult to gauge. But they are important. Brooke, let's shift to Egypt where quite a bit of your energy is being, of course, exerted towards the 12 months forwards are still around 33. The issue with that, that it's still about three or four Egyptian pounds off the spot rate. You know, what kind of metric you use, be it the black market or goal to kind of understand where it needs to trade, it looks like they're running into the same mistake they've done before in terms of not letting it float completely. What's the chronology of events that's likely to come from this point onwards? So we just came back from Egypt actually. We were there just earlier this week. We spoke to a number of people, including people who have been very critical of the Egyptian government and their ethics policies, I come away feeling that contrary to what you just said. They have allowed the currency to float for the time being. The problem isn't really in the amount of intervention in directly into the market that the public sector, the government, the Central Bank is doing. It has to do with the fact that the market itself is not fully functioning. They have, like I said, allowed it to float. But at the same time, there are significant ethics control. So you have a broken market where if I wanted to go get dollars, I just simply can't do it. And that's a bit of a nuance because what you've got is no intervention in the market that is fundamentally flawed because on the one hand, you have some effects inflows coming in, but on the demand side, you can't access those dollars. And so that has created a distortion in the market. It's created a situation in which these inflows are finding it
Bloomberg Radio New York
"genesis global capital" Discussed on Bloomberg Radio New York
"This is public daybreak Middle East. That was top stories this morning. Risks from rising interest rates to economic growth keep risk appetite in check. The fed's John Williams says there's more work to do on cooling inflation. Crypto from genesis global capital files for a bankruptcy in the southern district of New York will have to details. Japanese inflation hits 4% for the first time since 1981 driven by further gains in energy and food costs. Prince face will tell us on the U.S. continues to be Saudi Arabia's top security partner even as ties warm between the kingdom and China. Just got 9 a.m. across the Emirates. I'm used to giving a dean in Dubai. You're going to talk to me about fears of a recession weighing on sentiment. I want to tell you sure, but it's not only that in the United States, at least because you have the mass expiration of equities in January, at least historically, that sizable, and that happens on Friday. So with that in mind, on the S&P 500 mini, we are called the 5th of 1% higher, UBS thinks is 2023 rally that we've seen may turn out to be a head fake. The data is going to disappoint. It's too early to assume that inflation has truly passed. And as a result, they favor defensive equities and high grade and investment grade bonds. U.S. sends a three 40 60 a little bit of a move here of about a basis point. The Bloomberg dollar index, strengthens, and then Brent crude stays flat at $86 and 24 cents a barrel as we price in optimism around the China reopening. I want to get to this chart here and talk to you about Netflix because the CEO Reed Hastings has given up the CEO title. He's leaving the position to his longtime associates. That's Ted sarandos and Greg Peters. Our board has been discussing succession planning for years. What you're looking at here on this chart are some of the margins and look how they fall and they're become razor thin now, but in terms of results, Netflix came through with 7.7 million new customers. That was a beat revenue at $7.85 billion. That was in line with estimates. And they introduced commercials in November after all these years of saying, you know what? We're different. We're an alternative to the ad supported TV business. The ad tier performance so far from what we understand from third party data providers has been mixed in any case, we saw Netflix shares jump by about 6% in hour after trading after the announcement. Let's get out to the markets in Asia and about jeweler's joins us for that. From the Hong Kong studio. Maybell. Hey, Yusef. Yeah, we're at the midpoint of the Asian trading session. And in the days trading, we are focusing what you can see there behind me the MSCI Asia Pacific index, trading fairly flat at this point, just fractionally high here. The major thing that we're watching in the session really is this continued optimism that is around a China rather the reopening there because that is lifting really the indexes today, particularly those consumer discretionary stocks. Otherwise, the other major thing we're watching as well is the fed and this narrative that is still building that the fed will need to stay aggressive. We did just hear from the New York fed president John Williams in the last few hours saying that rates will need the same restrictive territory. We heard something similar as well from low brainard as well earlier. In terms of how trade is a reacting to that, though, they do seem to be largely shrugging it off in equities and then also if you change on now what we see in options and futures pricing as well because the current market pricing really is doubting this hawkish message from the fed, the terminal rate is expected to top out at 4.9%. You compare that to where the median in the dark pot is for currently of a above 5% Yusef. All right, well, thank you for not this edible jeweler's in Hong Kong. Now let's get to one of our top stories, cryptocurrency lender, genesis global capital, filed for chapter 11 bankruptcy. That is the latest firm to collapse in the aftermath of FDX swift downfall. Bloomberg's Joanna also has the details. So Joanna, now it's official, what else do we know from this filing? Yeah, well, yousef, we had been expecting this and we note that this is just the latest shoe to drop in all the trouble that the cryptocurrency industry has had. But we do know a couple things, you know, they're looking for a framework for global resolution of claims, creation of a trust that can distribute assets to creditors, and they are looking at a potential sale or capital raise with some of the assets, some of the business could emerge under new ownership, so they are looking at a variety of things. They say they have cash on hand. They want to be able to continue operations and facilitate the restructuring process. So there are a lot of things here that are kind of entrained and we'll see where it goes. We've also heard from the camera and winklevoss, who's Gemini has been locked in a battle with genesis and they're still not super happy, but this is a step toward a resolving something that we'd been expecting. To what about the reaction here that we got, I mean, a line from Cameron winklevoss. This printed at 8 58 a.m. to buy time. So that's about 7 minutes ago saying that DCG continue to refuse creditors fair deal. Talk to me about the significance of that. Yeah, well, we'll see what they say in the courts. And Cameron did also say that they were going to be looking at what comes out of this process if they're offered a fair deal. But it does look like it's possible that there will be some battles in this process as to exactly what genesis assets, how they will be distributed, who is going to get a chunk of them. So this could be there could be a little bit of tension in there. It might not be entirely smooth. Do you want to know? Thank you very much for the real-time analysis that is Joanna Austen in Singapore. Now, let's talk about the fed's lael brainard because she says that interest rates will need to stay elevated for, well, for a cooling of inflation. And that is just still too high. As we move the policy rate closer to what we call a sufficiently restrictive level, taking into account the risks around both our employment and inflation goals, and parallel the balance sheet of continuing to run off. That said inflation remains high and policy is going to need to remain sufficiently restrictive for some time to make sure it gets down 2% on a sustained basis. Over in Europe, ECB president Christine echoed those comments. Inflation by all accounts, however you look at it is way too high. And our determination at the ECB is to bring it back to 2% in a timely manner and taking all the measures that we have to take in order to do that. For more, let's bring in Bloomberg's David Finney. So David, how are the markets digesting this latest fed speak? Was certainly because both speakers were more hawkish tone to the markets of advice higher than expectations for the rate hikes. If you look at the ECB, we take them on first earlier this week, the expectations for the March meeting for how high they would hike fell because of reports that the ECB may look at 25 basis points, Christian Lagarde pushed back against that idea yesterday and so as a result you were seeing basically the expectations for the March meeting going from about 38 basis points hike to a 42 basis points hike. So while not 50 is not fully priced in, it's a lot closer and if you look at certainly the fed even more aggressive should we say the terminal rate now has come from 4.87 to 4.9 as far as the market is concerned. Remember, that compares with 5.1 according to the fed dot clock, but if you look at the back end of the year, where markets are looking for rate cuts, they're expecting going into the start of this week, they were looking at basically about 4.48 for the fed's terminal rate to end at, after week U.S. states and this week, it actually felt a 4.36. Now, after raynor's comment tomorrow last week or so yesterday
CoinDesk Podcast Network
"genesis global capital" Discussed on CoinDesk Podcast Network
"There are lots of things that remain unclear. How Gemini earned customers would be handled is a big one. Another is leadership. With the winklevosses followed through on their demand that Barry be replaced as head of DCG. Other folks in the crypto space who have their own sources are suggesting that a deal isn't as done as some of the reports are suggesting. AP abacus who has been providing breaking news on this topic via Twitter, tweeted in the afternoon that several genesis creditors had refuted the idea of a prepackaged bankruptcy, claiming that DCG and genesis had leaked this narrative as a tactic to force a deal to close. He quoted a source as saying the bankruptcy is quote far from a done deal. Let's assume, however, that some version of a prepackaged bankruptcy goes through. I wanted to know how the market would view that and so I tweeted a poll. I said Bloomberg is reporting that genesis is preparing to file for bankruptcy. Is this a bullish finally some resolution on one of the big overhanging issues or B bearish? It's a bankruptcy that will mean more capital locked up and more confidence lost. With more than 700 votes, 55% of people said it was bullish with 45% of people saying it was bearish. Now among those adding color to the this is good or this is bullish perspective, was Nicholas hall, the CEO of found, which is an on chain bankruptcy claims trading company. He writes, yes, a pre pack means the parties are in agreement prior to filing a chapter 11 petition. The benefits of a prepack or speed cost and predictability. The debtor generally dips in and out of bankruptcy, sometimes in as little as a day. Genesis formed a creditor committee weeks ago, so they may be able to obtain a due process preservation order, allowing for an ultra fast filing, so long as all classes entitled to vote on the reorg plan supported. Having litigation claims resolve prior to filing, likely means that this is a relatively routine confirmation. I would say that this is a good thing, but you never know. Scott Johnson, who is formerly a finance lawyer at Davis Polk and now his general partner at VB capital writes, pre packed bankruptcy would almost certainly mean little to no market impact in a very quick process. About as good a resolution as one would hope for. Compared to the freefall FTX bankruptcy, this is complete night and day. He also wrote reading tea leaves, trusts unaffected, never was any doubt in my opinion, basically genesis creditors capitulated and converted their immediate demand claims to long-term debt via forbearance, struggling to see where anyone would be for sellers or liquidators, only reason they're going through a chapter 11 bankruptcy is likely because there are some small holdouts or non responsive creditors that can be forced to go along. Otherwise, pre pack is comparable to out of court restructuring here. Holland Cedar capital management writes buys DCG time, so of course it's good for them. Going to be funny as price grinds up. All these bankrupt companies from FTX to three a seat and DCG start dumping their bags. CT would welcome the exit liquidity that bails them out in that scenario unless we get the real retail back in. Citrus vert writes better than winding it up now and losing control of the company to the liquidator. For creditors perhaps they have a higher chance of getting more money back too since they are also getting some shares. Capital rights resolution is almost always bullish in my opinion. It's the fog of war that causes risk aversion and then at a minimum, a higher cost of capital. Now if those are the good kind of perspectives, there were also some who had a split view. Joyce Neuer writes it's bad for TCG in the sense that they have to give up equity, presumably in excess of the collateral granted by the security documents. It's a time buying exercise where the party's hope crypto goes up in value. It's good for the market as it postponed uncertainty. Dylan krabi writes in the short term, it's bearish because we're going to see a wipeout in prices. However, in the long term, it's bullish because we finally scraped all the bullshit institutional grade degen leverage and illiquid collateralized loans out of the space. Others weren't so sure. Crypto lawyer Freddie rispoli writes, a genesis bankruptcy is terrible for Gemini. Bankruptcy forces a stay on all litigation against the company. Meanwhile, Gemini still solvent litigates against claims for its customers losses that were housed inside genesis. Now I think this makes a lot of assumptions about what sort of terms Gemini might or might not accept, but it is worth noting that there would be serious implications one way or another for those Gemini earn users. And then of course, there are crypto haters like John Reed stark, the former chief of the SEC office for Internet enforcement, who writes another one bites the dust. Genesis global capital is laying the groundwork for a bankruptcy filing as soon as this week. Meanwhile, genesis parent DCG told shareholders that it's suspending quarterly to conserve cash. The crypto ecosystem is crumbling. But holding aside whether it's good or bad, another question is whether it's priced in. I know many that I've talked to have expressed the feeling that a major shake up or even blow out of genesis DCG is just their base case now. But how broad is that sentiment? Commenting on the lack of negative price action around the announcement of an impending bankruptcy, Joe orsini, the VP of research at eaglebrook wrote, today's genesis bankruptcy news highlights the meaning of priced in. Fabian D writes read genesis situation a bankruptcy was baked into market expectations beforehand, B one to two year forbearance being negotiated with creditors, C, any sale of GBTC will take time to process and is not an immediate threat, D, DCG will survive. I'm in the already priced in camp. Also good chance that DCG proactively sold a lot of their liquid holdings in December. And if not, then it will also take time to go through the official bankruptcy proceedings first. Now, as for me, I'm definitely most closely aligned with the whatever short term bumps there are resolution is what matters camp. I certainly think a pre packaged deal could be a very good scenario relative to some of the disaster options. Look, at the end of the day, things right now aren't normal or hunky Dory. The GBTC trade was great on the way up and cause problems on the way down. DCG got itself over leveraged on that trade. Genesis got caught in the worst flameouts of last year and valuations for everything, including liquid assets and venture investments are down. Holding aside any value judgments or recriminations about how everyone got in the situation where we are, the reality is that withdrawals at genesis have been shut down for two months and it's not clear how DCG can cover all the debt. So yeah, put me in the camp of a pre negotiated solution that doesn't involve DCG, also being pulled into bankruptcy as being a good thing. Meanwhile, speaking of DCG affiliates, it's worth noting that The Wall Street Journal is reporting that coin desk has engaged investment bankers at lazard to help it explore options for a fuller partial sale. Quintus CEO Kevin worth said quote over the last few months, we've received numerous inbound indications of interest in coin desk. According to anonymous sources familiar with the matter, coined us because received multiple unsolicited offers above $200 million in that time. Join coin desks can census 2023. The most important conversation in crypto and
The Breakdown
DCG Responds As Gemini Accuses Company of Fraud
"Let's get into the meat of today. And that is, of course, the DCG drama continuing. I mentioned on yesterday's show as I was finishing up recording that Cameron winklevoss had just dropped another open letter. His second in two weeks. That letter ended up eliciting the longest response we've seen for months from DCG and its CEO Barry silbert. At this point, I don't think many of you need too much background, but the ultra TLDR of the situation is that genesis is a subsidiary of the digital currency group DCG, who also own coin desk, by the way. And genesis has both a lending business and a trading business. The lending business in particular had a rough 2022. They were the biggest creditor of three arrows capital after it collapsed, which led to DCG taking over that claim and the genesis CEO resigning. Genesis also had a $175 million or so stuck on FTX, and in the wake of the FTX collapse, genesis lending halted withdrawals. Among other things, that has trapped around $900 million that was part of Gemini's earn program, which is their consumer yield program. As time has gone on, Gemini's customers have been getting angrier and angrier and so too the public pressure from Gemini on genesis and DCG is also ratcheted up. Last week, that took the form of an open letter asking for Barry silbert and DCG to come to the table by January 8th, which was Sunday. That's the letter in which Cameron winklevoss accused silbert of bad faith stall tactics his words. In the wake of that, there was a bit of back and forth on Twitter, but nothing really more than that. Then of course, on Friday, Bloomberg reported that DCG and genesis were being investigated by the Department of Justice, which took the situation up a couple more notches. Well, yesterday on Tuesday, Cameron winklevoss dropped a second open letter and this one was even more accusatory than the first. This one was directed not to bury silbert, but to the entire digital currency group board. The big theme of that letter was that this was no longer just a public disagreement between business partners, but an accusation of fraud. The letter kicks off, I am writing to let you know that Gemini and more than 340,000 earn users have been defrauded by genesis global capital. Together with its parent company digital currency group, its founder and CEO Barry silbert, and other key personnel.
The Crypto Overnighter
"genesis global capital" Discussed on The Crypto Overnighter
"Here, encrypted, it's 10 p.m. Pacific time, my name is nicodemus and welcome back to the crypto overnighter, where we take a nightly look at the crypto NFT and metaverse space, and keep in mind nothing in this show should ever be considered financial advice. It's 10 p.m. on January tenth, 2023. How did your Tuesday treat you? Hopefully better than Mark Cuban, because a bunch of former Voyager customers are going after him. So what's going on is those customers are saying that he falsely advertised the company and that it was a Ponzi scheme. The case will be heard in a U.S. district court in South Florida in Cuban is set to testify next month. Now the judge in the case denied Cubans request to have his testimony in the Voyager lawsuit split over two hearings. He will have to give his full testimony on February 2nd, all in one go. Two employees from Dallas Mavericks and three plaintiffs will also testify. Now Cuban has made some statements that made voyagers investors angry. He did say that the vendor was low risk, and the lawsuit says that Voyager advertised itself as the official crypto broker, but it was not registered with the SEC or the CFTC or any other regulating bodies overseeing the selling of securities. And here I was thinking the spat between CZ and SPF was acrimonious. You know, right there before CZ basically sunk FTX with the single tweet kicking off the most recent round of events in a rather eventful bear market. Now, here's what I mean. Cameron winklevoss wrote an open letter to the board of the digital currency group. In that letter, he said Barry silbert is not suitable to be the CEO. He said that silbert and one of its subsidiaries, genesis global capital, scammed more than 340,000 users of Gemini's earned program. He also previously made an accusation on Twitter that genesis owes Gemini $900 million and he accused silbert of evading responsibility through using lawyers and investment bankers. A winklevoss claims that genesis borrowed over $2.3 billion from three hours capital. That resulted in a loss of 1.2 billion when the hedge fund failed in June of 2022. He also alleged that silbert, DCG, and genesis planned a carefully crafted campaign of lies from July of 2022 to make it look like DCG invested in genesis by including a ten year promissory note in its assets. Winklevoss also said that the CEO of genesis, Michael morrow, was involved in this deception by providing false and misleading statements on social media about DCG investing in genesis. He also says that some personnel in DCG tried to hide the fact that genesis was not properly financed. Winklevoss claims that if the hedge fund FTX hadn't failed, the accounting irregularities of DCG and silberg might never have been noticed. He also said that genesis did transactions involving recursive traits with three arrows and the grayscale Bitcoin trust. Using a method that he calls effectively a swap transactions. He said these transactions resulted in a loss for genesis in the firm failed to report it in their balance sheets. He said this was done to make it appear as if genesis was financially stable without actually providing the necessary financial support from DCG.
Finance Magnates
Crypto Downzing Continues as Huobi Plans to Prune Workforce by 20
"10 p.m. Friday January 6th, 2023. Crypto downs continues as will be plans to print workforce by 20. LTP class guadagno normal caught the downsizing wave that swept through. The cryptocurrency industry in 2022 is still on track as satchels based. Cryptocurrency exchange will be has disclosed its plans to print down its. Workforce by 20. LTP GTL TP class Guatemala normal coop will be told Reuters on Friday that it intends to maintain a very lean team to cope with the current bear market in. The industry this is even as Justin's son trans founder and member of hobbies. Global advisory board disclosed in an internal memo seen by the outlet that. The crypto exchange has about 1100 employees. LTP GTL TP class Guatemala normal quad son also noted that the crypto. Exchanges plan for some structural adjustment has a first quarter 2023. Completion target. The board member expects that the company's reorganization will produce short term benefits for the exchange LTP LTP class Guatemala normal texting justify genesis and silvergate capital cut jobs for classical normal quad meanwhile, genesis trading on Thursday. Announced its second round of job cuts in less than 6 months. Sources put the figure of affected workers at about 30 the company attributed the action to. Efforts to move the business forward. However, the development comes amidst. Subsidiary genesis global capitals of the finance magnates dot com cryptocurrency with genesis leads to our users classics and request quote target crop line quat roll quote follow caught trouble. With geminal tagged over 900 million unpaid debt related to the Gemini trust earn program LTP LTP class Guido meso normal quad watch, the FML S 22 session on the future of digital assets LTP GTL TP class Guatemala normal quad similarly, crypto focused bank, silvergate capital corp, also. Announced a plan to reduce its headcount by 40. These job cuts come as crypto. Exchanges search for succor in the face of dwindling investor confidence in. Crypto LTP GTL TP class guadagno normal texting justify crypto exchanges cut jobs in recent. Months of classical missile normal quat in the past few months, a number of. Crypto exchanges have also pruned down or announced plans to shed there. Workforces LTP GTL TP class guide normal texting just to flatten early December, by bit laffer of finance magnates dot com cryptocurrency by ten ounces, no job cut 5 months after workforce a term quote target crop blank real quick follow-up made public its plans to tag to. Further term its workforce with confirmed sources putting the figure at. About 30 the revelation came 5 months after bybit shrank its workforce. A bybit spokesperson said the aim the new layoff round is to remove overlapping functions and build. Smaller but more agile teams dot qualify missile normal textile and just one day a week before by deposit announcement. Kraken, one of the longest running cryptocurrency exchanges of the finance magnates dot com cryptocurrency crypto exchange a croc and cut school bail workforce by 30 quote target crop line quat roll quote follow caught decreased. Its workforce by 30 tagged firing. Approximately 1100 people in order to adapt to current market conditions. This article was written by Solomon Oladipo at WWW dot finance magnates dot com.
The Bitboy Crypto Podcast
"genesis global capital" Discussed on The Bitboy Crypto Podcast
"Flat 7.4 percentage annual yield. G USD is the first dollar pegged stablecoin to be added to earn the product already sports die, but it is an algorithmic stablecoin being is not backed by Fiat currency, but by crypto assets. Gemini CO Noah Perlman said, there's high demand for G USD among institutional borrowers, big mistake, who use it to fund their operations and investment strategies. They're willing to pay competitive market rates to borrow G USD, are vetted institutional lending partners such as genesis global capital, find these borrowers and linear funds in exchange for an interest payment. Of course, this is here on the website, the block, as you can see here. Of course, the block, CEO, took $27 million from Alameda. So that affect this article, not really sure. Coinbase customers around the world can now earn up to 1.5% APY on USD C and also as you know recently, they made zero trading fees on swapping tether to USD C. Why? You may be wondering, you know, if Gemini has their own stablecoin and circle and BlackRock want to go after them, what about coinbase? Well, you may not know this, is USD C, circular coinbase, launched in 2018, USD C has managed by center, a consortium form to improve the mainstream adoption of stablecoins. Coinbase, along with the Boston based financial services company, circle is the founding member of the consortium, switched to a trusted stablecoin, USD coin. It's in the name. USD coin. We know Jerome Powell back in 2020 already said they're open to using the private sector for a digital dollar. All right, back to this article on coinbase, there's now another reason to use the most trusted and reputable digital dollar starting today customers globally will earn up to 1.5% APY on their USD coin. That's approximately 1500 times more than you will earn on dollars in the bank. Now customers globally can earn rewards on a USD C while taking advantages of its many uses. Many uses. It's a dollar. What are you going to do with it? So a 1.5% yield, is that great in crypto, though. Not really, we've seen 6 to 8%, not that they've worked over the long term. But here on BlockFi, this is what they were offering. 7% returns
The Café Bitcoin Podcast
"genesis global capital" Discussed on The Café Bitcoin Podcast
"Free thinking people, it's actually destroying the ideologues credibility for free thinking people. It's the opposite effect of what they think is happening. Like all the drones are going to be like, oh, Jordan Peterson bad. But everybody else is like, wow, you guys are a bunch of douchebags. All right, moving on. I'm going to lay a little baseline stuff for what's going on for people who aren't following it, and then we'll jump into this Gemini cofounder, one of the winklevoss, winklevoss, is claiming the DCG has acted in bad faith. And solbert has replied to this. So Cameron winklevoss alleged Barry silbert DCG of engaged in stall tactics ever since genesis global capital, a wholly owned crypto trading platform halted withdrawals back in November. So there's some, there's a big outstanding loan, $900 million to Gemini earned customers and other creditors. And basically he's saying that sober is not cooperating. And he's in his letter. He says, you continue to get into a room with us to hash out a solution. In addition, you continue to refuse to agree to a timeline with key milestones every time we ask you for tangible engagement, you hide behind lawyers, investment bankers, and process. They further allege that Barry has taken $1.67 billion from genesis to fund share buybacks and make investments in illiquid ventures to make grayscale trades. I don't know about all that, but it's pretty wild. So, Joe, do you want to weigh in here with some thoughts? Yeah, so first off, happy new year, everybody. Hope you'll find health wealth and happiness in the new year. Thanks for having me up, Alex. So from my standpoint here, it's really hard to know without looking at the source documentation much of which was not public. I mean, I did see buried disputed this notion about the 1.6 billion from genesis and he said that DCG has never missed a payment to genesis since current all loans. You're not going to know some of this stuff until at least a couple of weeks from now when we get some new quarterly filings. So it's really hard to sort that out. But in terms of just a credibility test, I would probably side just, you know, gun to my head with the winkle eye. I actually trust them more than I do very silver. I more interested on the efforts I know of at least three groups, one of which is Valkyrie that is focused on efforts to organize and remove this bond from D.C., GBTC. That's really what I've been looking at. One of which I'm intimately familiar with, but I can't yet talk about publicly. The couple other ones that are talking publicly, I think that's far more fascinating and hopefully that actually snowballs into something real. All right, open floor Lake, whoever else has anything tone, Matt. I got a question for you. So I was preparing for this so I can talk about this slightly more intelligently. Have you read the lawsuit by virtue of value master fund? I guess gray scale. So I write that thing and to me it just sounds like complaint letter on the same level as winkle white twins. I don't see a lawsuit there. A lot like I think this stuff is completely silly. Like, look, we're not happy with Barry.
The Breakdown
On Bitcoin's 14th Birthday, the Gemini-DCG War of Words Heats Up
"All right, folks, while I hope you have had a great holiday season in a very happy new year. And boy, this year is off with a bang. Yesterday for most businesses in the U.S. was a day off, which is what happens obviously when new year's falls on a Sunday. But that didn't stop some of the biggest drama in crypto for coming right up to the fore. So a quick recap of the genesis DCG Gemini situation. Genesis is a digital currency group subsidiary. By the way, so is coin desk. And genesis has been caught up in a lot of the crypto institutional failures of this year. In July, court documents from the liquidator of three arrows capital showed that DCG genesis had lent three arrows capital a total of $2.4 billion. Three C had put up approximately $1.2 billion worth of crypto as it was valued at the time as collateral. In the court filings, it showed that DCG claim against three AC was by far the largest at 1.2 billion. The next biggest creditor was Voyager digital whose claim was 687 million, and then there was one more claimant with 302 million and the rest were in the lowly 8 figures. At the time a spokeswoman for DCG said both the DCG and genesis balance sheets remained strong, with no remaining exposure to three hours capital, genesis continues to be well capitalized that its operations are business as usual. How many times was that sort of statement last year proven to be not completely true? So fast forward to the FTX collapse. At first genesis said they had basically no exposure, but then a few days later, that was up to 175 million. However, just a few days after FTX went into bankruptcy, genesis global capital, which is the company's lending unit halted withdrawals. is never a good sign in fact, it's usually the sign that something much bigger is going on than anyone had wanted to let on. The VP of communications and marketing at DCG said at the time, today genesis global capital genesis lending business made the difficult decision to temporarily suspend redemptions in new loan originations. This decision was made in response to the extreme market dislocation and loss of industry confidence caused by the FTX implosion. The decision impacts the lending business at genesis and does not affect genesis trading or custody businesses. Importantly, this decision has no impact on the business operations of DCG and our other wholly owned subsidiaries. Right from then no one thought that was exactly true. But over a couple of weeks, there was much swirling in rumor of potential bailouts and funding rounds.
The Breakdown
"genesis global capital" Discussed on The Breakdown
"Federal prosecutors are now looking into whether FTX and Alameda manipulated the market for Tara USD and Luna in a way that led to their demise. From The New York Times, quote, U.S. prosecutors in Manhattan are examining the possibility that mister bagman freed steered the prices of two interlinked currencies, Terra USD and Luna, the benefit the entities he controlled, including FTX and Alameda research. A hedge fund he cofounded and owned. The investigation is in its early stages and it is not clear whether prosecutors have determined any wrongdoing by mister bankman fried. Or when they began looking at the terror USD and Luna trades. The matter is part of a broadening inquiry into the collapse of mister bankman freed's Bahamas based cryptocurrency empire and the potential misappropriation of billions of dollars in customer funds. Crypto Twitter could basically taste the delicious irony here. Gabriel Shapiro writes how funny would it be if SPF Alameda crashed UST ultimately dooming SPF's entire empire? I believe in karma. Zero had rights too many ironies, one FTX sparked the collapse of Terra USD and Luna eventually leading to FTX own demise. Two coin desk first reported on FTX fraud, sparking a cascade of events that has led to the near demise of parent digital currency group. Now, by the way, on that front, the lack of progress out of genesis financial trouble continues. With the crypto lender writing the clients yesterday, quote at this point, we anticipate that it will take additional weeks rather than days for us to arrive at a path forward. As we progress you will hear from us on meaningful developments including any updates on timing. Frank chaparro of the block summed up the situation well tweeting genesis basically like, let's all reconnect in the new year. Gemini, one of the major creditors of genesis have committed to additional communication with customers as the negotiation process continues. Cameron winklevoss, the co CEO of Gemini tweeted, today Gemini is launching a new page that aims to bring as much transparency as possible to the process of finding a resolution for all earn users to redeem their funds. At a minimum we will update this page on Tuesday and Friday of each week until a resolution has been reached. Gemini acting as an agent on behalf of our users has been an ongoing conversation with genesis global capital, DCG co, the parent company of genesis, and Barry silbert, the CEO of DCG, in an effort to find a resolution ASAP. Anyway, to put a nice little bow around the Sam updates where we stand is that there are two hearings next week. A house hearing on Tuesday and a Senate hearing on Wednesday. They both want Sam, they want Sam in person, and now they're using the subpoena word in terms of what they're willing to do to get him there. Sam, meanwhile, after hiring Elaine's lawyer, has finally gone quiet. But lest you think regulators are only focused on Sam, that is not the case. On Tuesday, we discussed distressed crypto serving bank silvergate. Senator Elizabeth Warren has gone after them in a significant way. On Wednesday, she and senator Tina Smith sent a letter to Jerome Powell about banking in crypto. We write to express concern regarding recent revelations of ties between the banking industry and cryptocurrency firms and to inquire about how your agency, the Federal Reserve, assesses the risks to banks and the banking system associated with those relationships. Thankfully, the banking system has been spared of the FTX induced turmoil. Despite the industry's efforts to gain access to the banking system and the benefits that come with federal recognition from bank regulators, crypto is so far not deeply integrated with the traditional banking system. Nevertheless, it appears that crypto firms may have closer ties to the banking system than previously understood. According to a New York Times report, Alameda, which siphon $10 billion off the FTX exchange and into its coffers under a scheme coordinated by Sam bankman fried and other FTX and Alameda executives made an $11.5 million investment into moonstone bank, more than double the bank's worth at the time. According to a former president of the independent community bankers of America, quote, the fact that an offshore hedge fund that was basically a crypto firm was buying a stake in a tiny bank for multiples of its stated book value, should have raised massive red flags for the FDIC. State regulators and the Federal Reserve. It's just astonishing that all of this got approved. A little editor's note here that was the same quote I used when I was talking about this moonstone connection. Now ultimately what Warren and Smith are asking power for is a set of questions. To be returned by December 21st. Those questions include things like, do your agencies plan to conduct a review of crypto firms relationship with banks. Describe the process by which your agencies evaluate banks relationship with crypto firms. Questions around which banks provide crypto custody services hold dollar deposits for crypto related firms, act as nodes to verify customer payments, et cetera. Now, on the surface, none of this is totally unreasonable. The moonstone investment is really weird. And to the extent that the fed or a branch of it approved the transaction, these are reasonable questions to ask. However, many in the crypto community simply do not believe that Warren's arguments are in good faith. Went in, saying, senator Warren doesn't want to investigate a single bank for its relationship to a fraudulent crypto exchange. No, she wants to shut down all banking access to honest crypto companies too. That is her goal. He also made an accusation that there was a significant lobbying campaign going on behind the scenes. Tweeting, the Warren silvergate letter is allegedly in response to a push from a well-known short seller who has been aggressively hitting D.C. with his pitch. Senator Warren, are you doing the bidding of short sellers in an attempt to spark a bank run on an entity you disagree with politically? Now, I don't know for sure, but I can only assume sulcus is referring to Mark hodes, who has been super vocal about sulfur gate in the wake of FTX collapse. As an aside, short sellers and media and lobbying is one of the weirder parts of the market and regulatory system to me. We're just discussing whether Alameda manipulated the market, presumably those investigating mean the way that they traded around USD T and Luna. But why that isn't leveraging media relationships to try to take down a company which necessarily would mean tanking their stock price in the case of silvergate, its own form of manipulation. By the way, this is a general thought that I've had many times in the past, not necessarily specific to hear. And Marko hodes was right on Sam, so if for no other reason than recency bias, probably deserves some consideration. Anyway, back to Ryan, he writes, I feel bad for silvergate. This should have been a banner year for them as a pillar of the crypto community, as rates finally rose above zero for the first time in years. Instead, their collateral damage to a massive financial fraud and now part of a senator Warren witch hunt. There's a chance this blows up in my face, but I'm willing to risk it and say I'd be surprised and very disappointed if silvergate was anything but on the up and up. There's a lot of short seller political witch hunt FUD right now, but it's a good bank with good people. Now silvergate isn't the only one outside FTX that is getting FTX related heat. New York Democrat Richie Torres sent a letter on Tuesday to the government accountability office asking them to investigate the SEC's quote failure to protect the investing public from the egregious mismanagement and malfeasance of FTX. The Torah's note is pretty good, so I'm going to read a big excerpt from it. I'm ready to respectfully request that the government accountability office conduct an independent review of the SEC's failure to protect the investing public from the egregious mismanagement and malfeasance of FTX, which is brought billions of dollars in losses to about a million creditors and customers. Chair Gary gensler, by the logic of his own public pronouncements, is singularly responsible for the regulatory failures surrounding the collapse of FTX and its affiliate FTX U.S.. Chair genzler has said on countless occasions that there is no need for authorizing legislation from Congress, the SEC presently possesses the authority it needs to regulate crypto exchanges. If the SEC has the authority, mister kenzer claims, why did he fail to uncover the largest crypto Ponzi scheme in U.S. history? One can not have it both ways asserting authority while avoiding accountability. It is on Congress to pass laws, but once the necessary laws have been enacted, it is on the regulators to apply those laws to conduct investigations and protect the public. When it comes to FTX, chair guns are fundamentally failed as a regulator, and he has no one but himself to blame. The SEC chose to dedicate scarce time and resources to investigating Kim Kardashian rather than opaque crypto exchanges, leaving many to question whether the commission is operating
CoinDesk Podcast Network
"genesis global capital" Discussed on CoinDesk Podcast Network
"Yesterday that federal prosecutors are now looking into whether FTX and Alameda manipulated the market for Tara USD and Luna in a way that led to their demise. From The New York Times, quote, U.S. prosecutors in Manhattan are examining the possibility that mister bagman freed steered the prices of two interlinked currencies, Terra USD and Luna, the benefit the entities he controlled, including FTX and Alameda research. A hedge fund he cofounded and owned. The investigation is in its early stages and it is not clear whether prosecutors have determined any wrongdoing by mister bankman fried. Or when they began looking at the terror USD and Luna trades. The matter is part of a broadening inquiry into the collapse of mister bankman freed's Bahamas based cryptocurrency empire and the potential misappropriation of billions of dollars in customer funds. Crypto Twitter could basically taste the delicious irony here. Gabriel Shapiro writes how funny would it be if SPF Alameda crashed UST ultimately dooming SPF's entire empire? I believe in karma. Zero had rights too many ironies, one FTX sparked the collapse of Terra USD and Luna eventually leading to FTX own demise. Two coin desk first reported on FTX fraud, sparking a cascade of events that has led to the near demise of parent digital currency group. Now, by the way, on that front, the lack of progress out of genesis financial trouble continues. With the crypto lender writing the clients yesterday, quote at this point, we anticipate that it will take additional weeks rather than days for us to arrive at a path forward. As we progress you will hear from us on meaningful developments including any updates on timing. Frank chaparro of the block summed up the situation well tweeting genesis basically like, let's all reconnect in the new year. Gemini, one of the major creditors of genesis have committed to additional communication with customers as the negotiation process continues. Cameron winklevoss, the co CEO of Gemini tweeted, today Gemini is launching a new page that aims to bring as much transparency as possible to the process of finding a resolution for all earn users to redeem their funds. At a minimum we will update this page on Tuesday and Friday of each week until a resolution has been reached. Gemini acting as an agent on behalf of our users has been an ongoing conversation with genesis global capital, DCG co, the parent company of genesis, and Barry silbert, the CEO of DCG, in an effort to find a resolution ASAP. Anyway, to put a nice little bow around the Sam updates where we stand is that there are two hearings next week. A house hearing on Tuesday and a Senate hearing on Wednesday. They both want Sam, they want Sam in person, and now they're using the subpoena word in terms of what they're willing to do to get him there. Sam, meanwhile, after hiring Elaine's lawyer, has finally gone quiet. But lest you think regulators are only focused on Sam, that is not the case. On Tuesday, we discussed distressed crypto serving bank silvergate. Senator Elizabeth Warren has gone after them in a significant way. On Wednesday, she and senator Tina Smith sent a letter to Jerome Powell about banking in crypto. We write to express concern regarding recent revelations of ties between the banking industry and cryptocurrency firms and to inquire about how your agency, the Federal Reserve, assesses the risks to banks and the banking system associated with those relationships. Thankfully, the banking system has been spared of the FTX induced turmoil. Despite the industry's efforts to gain access to the banking system and the benefits that come with federal recognition from bank regulators, crypto is so far not deeply integrated with the traditional banking system. Nevertheless, it appears that crypto firms may have closer ties to the banking system than previously understood. According to a New York Times report, Alameda, which siphon $10 billion off the FTX exchange and into its coffers under a scheme coordinated by Sam bankman fried and other FTX and Alameda executives made an $11.5 million investment into moonstone bank, more than double the bank's worth at the time. According to a former president of the independent community bankers of America, quote, the fact that an offshore hedge fund that was basically a crypto firm was buying a stake in a tiny bank for multiples of its stated book value, should have raised massive red flags for the FDIC. State regulators and the Federal Reserve. It's just astonishing that all of this got approved. A little editor's note here that was the same quote I used when I was talking about this moonstone connection. Now ultimately what Warren and Smith are asking power for is a set of questions. To be returned by December 21st. Those questions include things like, do your agencies plan to conduct a review of crypto firms relationship with banks. Describe the process by which your agencies evaluate banks relationship with crypto firms. Questions around which banks provide crypto custody services hold dollar deposits for crypto related firms, act as nodes to verify customer payments, et cetera. Now, on the surface, none of this is totally unreasonable. The moonstone investment is really weird. And to the extent that the fed or a branch of it approved the transaction, these are reasonable questions to ask. However, many in the crypto community simply do not believe that Warren's arguments are in good faith. Went in, saying, senator Warren doesn't want to investigate a single bank for its relationship to a fraudulent crypto exchange. No, she wants to shut down all banking access to honest crypto companies too. That is her goal. He also made an accusation that there was a significant lobbying campaign going on behind the scenes. Tweeting, the Warren silvergate letter is allegedly in response to a push from a well-known short seller who has been aggressively hitting D.C. with his pitch. Senator Warren, are you doing the bidding of short sellers in an attempt to spark a bank run on an entity you disagree with politically?
The Crypto Overnighter
"genesis global capital" Discussed on The Crypto Overnighter
"We want to reiterate that 100% of client funds are safely held in cold storage and are not used for business activities. Circle came out with a warning today. The producer of USD C brings word of an active fishing campaign, where scammers pretend to work for center, a center is consortium, put together by circle and coinbase. Now, unfortunately, they were forced to issue a statement letting everybody know that there is no new version of USD C quote PSA warning. There is an active fishing campaign attempting to lure users into transferring USD C tokens to malicious addresses. The scammers are pretending to be from center. There is not a new version of USD C in the marketplace. Please do not fall for this. Jeremy allaire is circled CEO and founder, and he has been pressuring lawmakers, writing the congressional leaders for financial services. Pleading for clear working legislation on stablecoins. He warns that continuing to fail to provide that legislation is going to continue to attract more scams and scammers. So what happens in this case is the scammer is using Azure web services. Now this runs a network of phishing sites set up to bring victims and through a phishing messages. These messages are made to look like fake transaction requests. Now, speaking of scams, I just heard about this one. Blockchain security expert certificate tells us there's a large group of professional know your customer actors. So if you're a morally impaired leader of a suspect product, you might hire these actors to complete your KYC process on your behalf. And then use those faked credentials to power your rug pool. Lots of scams out there. Be vigilant. Joseph Borg is the securities commission director for the state of Alabama. He is one of the state regulators looking into genesis global capital to determine if any wrongdoing took place. According to a report from Barron's, Borg indicates that his agency as well as those from other states are involved in these investigations. They're looking into whether or not genesis persuaded the residents of those states to invest in crypto securities despite not having the proper registration. That said, Borg didn't specify which states were joining him. This comes after genesis reports that they hired an investment bank to look into their options, including bankruptcy. This comes after the crypto lender failed to recover from its exposure to two failed projects. One was the crypto exchange FTX and the other was the crypto hedge fund three arrows capital. So genesis has been working much of the month of November to find fresh capital. They need either more money or more time from their creditors. Things have gotten more dire since last week as they had to halt redemptions and new loan originations. And keep in mind, genesis still has a $175 million locked on FTX exchange. Now, if like genesis global, you're an FTX creditor, your anonymity may be secure. Maybe. At least for now. Now keep in mind what happened when Celsius went belly up. Crypto Twitter had a field day going through the records and seeing who was a Celsius customer and how much they'd invested. Well, a federal judge has granted a request to keep the creditors list anonymous. That said, judge John Dorsey did note that some of the anonymity may be stripped away in the near future. He said quote, on an interim basis, I'll enter the order, allowing for the redaction of the names and addresses. Everyone in the room knows the Internet is wrought with potential dangers. And I think people get that, at least as far as the individuals go. Nobody needs to know that your great aunt Lucy lost $5000 to FTX. Benjamin hackman is an attorney for the U.S. trustee's office. He said quote, we oppose the redaction of the names and addresses of customers who are not individuals. There should be transparency about who these entities are, especially on the top 50 list. Now to be fair, typically a creditor list is made public during bankruptcy proceedings in the United States. That said, lawyers for the FTX empire have argued against that. They are in favor of keeping as much information as secret as possible. Interestingly, it's not due to privacy concerns, or at least not just that. But the company also views the list itself as an asset. Brian gluckstein is a partner with Sullivan and Cromwell, and they are the firm representing FTX in this bankruptcy. He argues quote, the debtor's customer list numbering in the millions is an asset of the estate. Public release of the customer list would give the debtors competitors a free opportunity to approach the debtor's customers. And would interfere with the ability to sell assets and maximize value as these cases progress. That said, the unredacted list will be available to U.S. trustees office on a confidential basis. Another hearing on the matter is expected for next month. And finally, variety magazine reports that Hollywood executives are interested in the FTX story. Some seeing it as the spiritual successor to films about the failures of. Two weeks after the collapse of SPF's empire and variety already has confirmation that a show is in the works. Jennifer salke is ahead of Amazon Studios. She said that there is a documentary series in the works and that it would involve directors who have already worked with Amazon in the past. She said quote, we are excited to be able to continue our great working relationship with David Joe Anthony and the ag Bo team with this fascinating event series. I can't think of better partners to bring this multifaceted story to our global prime viewer audience. Now according to variety, the Russo brothers and David wheel are already under contract. Wheel will be in charge of writing and producing the pilot while the Russo brothers will be producing the rest of the series. When contacted for comment, the Russo brothers acknowledged that this is a very complicated case. They indicate that they want to expose the whole thing to the public. This is one of the most brazen frauds ever committed. It crosses many sectors, celebrity, politics, academia, tech, criminality, drugs, sex and the future of modern finance. At the center of it, sits an extremely mysterious figure with complex and potentially dangerous motivations. We want to understand why. The plan is for the show to last 8 episodes. Allegedly, it's going to be based on insider reporting, as well as testimony from journalists at the heart of the implosion. And while we know that production is slated to start in the spring of next year, we still don't have a title. And in continuing fallout from the implosion of FTX, we have MakerDAO. There are the issuers of die, a decentralized, stablecoin. In this week, they passed a unanimous resolution to dump ren BTC as a form of reserve collateral. Given its relationship to Alameda research, the Dow feels it's just too risky. The vote was 75,000 to zero. Nobody abstained, nobody objected. They said quote, considering the acquisition of the ren project by Alameda research in the recently bankruptcy of the latter, the ren development team disabled the rent network mints. And so November 18th marks the start of the 30 day period before rent 1.0 starts to shut down. Ren is a bridge protocol used to transfer digital assets between blockchains. Like Bitcoin to Ethereum. It works kind of like a stablecoin in that way. And in fact, MakerDAO was holding ren BTC as part of their basket of reserves, which includes USD C and Ethereum. Ren was acquired by Alameda research earlier this year. And as such has been receiving funding from them on a quarterly basis. And I think that's going to do it for us tonight. I want to thank you, my listeners, because when you stop listening, I will stop talking. We'll see you tomorrow night.
Forkast
Digital Currency Group seeks to calm investors over Genesis loans: reports
"6 a.m. Thursday, November 24th, 2022. Digital currency group seeks to calm investors over genesis loans, reports, Barry silbert of DCG disclosed his company owes a U.S. 5 75 million loan and a U.S. 1.1 billion promissory note to its subsidiary genesis global capital
Techmeme Ride Home
"genesis global capital" Discussed on Techmeme Ride Home
"2022. I'm Brian McCullough today. Rut ro, storm clouds gathering in crypto land again. This time it's DCG and genesis, the shocking CEO change over at Disney, the surprising return of swift key. What you missed this weekend in Twitter and you've heard of stable diffusion, let me introduce you to unstable diffusion. Stable diffusion, but for porn. Here's what you missed today in the world of tech. Well, there seems to have been more storm clouds a gathering in the crypto world. They seem to be circling around DCG and genesis. DCG grayscale has refused to share proof of reserves citing security concerns as grayscale Bitcoin trust reaches new lows and DCG genesis has halted withdrawals. Quoting the block. The firm acknowledged its decision to keep its reserve information private would be a disappointment to some investors, crypto firms are being pressed to show more information about their reserves after crypto behemoth FTX filed for bankruptcy protection earlier this month. But panic sparked by others is not a good enough reason to circumvent complex security arrangements that have kept our investors assets safe for years. Grayscale said. Grayscale Bitcoin trust or GBTC hit a record low on Thursday as did its ETH E product. The firm's parent company digital currency group has brushed off contagion fears after the shocking collapse of FTX at the same time, however, another entity affiliated with grayscale recently halted withdrawals. Genesis global capital is linked to grayscale through digital currency group. Quoting from CNBC, grayscale's flagship fund is the grayscale Bitcoin trust known by its GBTC ticker. Even as Bitcoin trades at a multiyear low of around $16,000, GBTC is trading at a 45% discount to the price of its underlying asset. While Bitcoin is down, 72% over the last 12 months, GBTC has recorded an 82% loss in that same period as of last Friday. The spread reflects a significant disparity between the value of the trust's soul holding and the open market price for a share in the trust. In its statement on Friday, grayscale said each of its digital asset products is set up as a separate legal entity and reiterated that those digital asset products are quote stored under the custody of coinbase custody trust company. The firm pointed to a letter sent by coinbase CFO, ELISA Haas
The Breakdown
"genesis global capital" Discussed on The Breakdown
"The breakdown is sponsored by nexo IO, circle, and kraken, and produced and distributed by coindesk. What's going on guys? It is Wednesday, November 16th and today we are catching up on FTX contagion as well as some interesting things from the macro world. Before we get into that, however, if you are enjoying the breakdown, please go subscribe to it, give it a listen, give it a review, or if you want to dive deeper into the conversation. Come join us on the breakers Discord. You can find a link in the show notes or go to bit LY slash breakdown pod. All right guys, how is everyone doing out there? Now, I mentioned it yesterday, but I wanted to tell you again about the upcoming grateful for Bitcoin series next week. I've started recording those interviews as of today, including one about Bitcoin gas flare mining today that I think you're really going to like. I also want to say welcome once again to kraken as a partner for the breakdowns back to basics theme throughout the rest of this year. Now today, I want to catch up on a few of the macro stories we've missed as we've been very understandably focused on the crypto industry, but unfortunately first we do have to look at the latest contagion from FTX collapse. Genesis trading is one of the larger players in the institutional crypto space. They're one of The Crown jewels in the digital currency group empire, which should be noted also includes coin desk. They're lending arm is called genesis global capital. And at the end of the third quarter, it had $2.8 billion in total active loans. Now, genesis has had a rough year. They suffered 9 figure losses a few $100 million through their exposure to three arrows capital and Babel finance earlier this year. In June, Michael morrow said, as we already stated on June 17th, we mitigated our losses with a large counterparty who failed to meet a margin call to us. We sold collateral hedged our downside and moved on. Our business continues to operate normally and we are meeting all of our clients needs. Now still losing a few $100 million is going to have some consequences and in the wake of all this CEO Michael morrow stepped down. Perhaps unsurprisingly then when FTX collapsed, one of the big questions was what exposure genesis had. Initially, they said they only had something like $7 million of exposure, but then that was revised up to about a $175 million in locked funds in its FTX trading account. Because of this last week, DCG decided to strengthen their balance sheet with an equity infusion of a $140 million. In spite of this, last night, rumors of solvency issues were perhaps liquidity issues, started to make their way to Twitter. Satoshi stacker wrote breaking, there are rumors about genesis trading being insolvent despite receiving an infusion of a $140 million a few days ago. The parent company of genesis DCG, which is also the parent company of grayscale. Grayscale is one of the largest holders of Bitcoin worth $11 billion. This morning it was revealed that the issue was not with genesis trading, but with genesis capital. Frank chaparro from the block tweeted genesis just held a 7 minute call with clients to let them know withdrawal requests for genesis capital have exceeded their liquidity profile. CEO says he's working on a plan with advisers to fix their liquidity profile and serve clients. Amanda cowie vice president of communications and marketing at DCG released a statement that said, today, genesis global capital, genesis lending business, made the difficult decision to temporarily suspend redemptions and new loan originations. This decision was made in response to the extreme market dislocation and loss of industry confidence caused by the FTX implosion. This decision impacts the lending business at genesis and does not affect genesis trading or custody businesses. Importantly, this decision has no impact on the business operations of DCG and our other wholly owned subsidiaries. Still one of the fallouts from the genesis capital withdrawal shutdown is the Gemini earn program. The team at Gemini released a statement this morning that says, we are aware that genesis global capital, the lending partner of the urn program, has paused withdrawals and will not be able to meet customer redemptions within the service level agreement of 5 business days. We're working with the genesis team to help customers redeem their funds from the earned program as quickly as possible. We will provide more information in the coming days. This past week has been an incredibly challenging and stressful time for our industry. We are disappointed that the earned program SLA will not be met, but we are encouraged by genesis and its parent company digital currency group's commitment to doing everything in their power to fulfill their obligations to customers under the urn program. We will continue to work with them on behalf of all earned customers. This is our highest priority. We greatly appreciate your patience. My duties from 6 man ventures said to be clear, this isn't a hit to Gemini's deposit base. But it's a hit to the market value prop and trust surrounding the concept that customers can earn safe reliable yield on their crypto via a regulated exchange. Not trying to FUD here and I expect Gemini deposits are fine. End quote still, after everything that went down with FTX, what people want is details. Jason Choi wrote no exact figures and still having issues post DCG infusion are not confidence inspiring. Bantu responded to Jason saying fully operational, but temporarily halting origination withdrawals. This seems like another way of saying insolvent. Jason responded, I don't know, just repeating exactly what was said. Could be a duration mismatch could be insolvency. If former good. If latter, pray. Want to keep more profits when trading? Get the best possible prices and trade with 50% lower fees. On nexo pro. The new spot and futures trading platform uses aggregated liquidity of over 3000 order books collected from multiple sources. Utilizing the complete nexo suite allows you to earn interest and borrow funds as you wait for the next trade setup. Visit pro nexo dot IO. That's PRO dot N EXO dot IO and sign up today. This episode is brought to you by circle. The sole issuer of USD C and a leader in crypto that's held to a higher standard. USD C is a fast safe and efficient way to send money around the globe. USD C is always redeemable one to one for U.S. dollars, and has over $45 billion in circulation as of October 13th, 2022. Plus, circle posts weekly reserve reports and monthly attestations of reserve capital, letting users know that USD C is safe transparent and compliant with regulations. Just go to circle dot com backslash transparency to see why USD C is a trusted stablecoin. As one of the largest, longest lasting, and most secure exchanges. Kraken continues to set the industry example for transparency and trust. Twice yearly proof of reserves audits verify your assets are backed by real assets. Industry leading security keeps your funds and information safe. And award winning client engagement teams are available for support 24/7. By crypto instantly with fast flexible funding options on kraken. Download the crack an app on Google Play or the Apple App Store, or visit kraken dot com to join. Now, over the last couple of hours, as I was working on the show, the situation with Gemini seemed to get worse. Numerous commentators noticed that it wasn't just earned but the entire exchange that seemed to be down. There were outages across the web UI, the mobile app that earned program the exchange trading engine, numerous APIs, and more. However, according to the latest tweet from Gemini, it was all about AWS. Quote, we experienced an Amazon Web Services EBS outage with one of our primary databases. We have restored the database and are bringing the exchange back up. Alex Krueger gives probably what's the simplest explanation saying, guessing Gemini withdrawals not working at the moment because Gemini earn got shut down due to genesis lending, leading everyone to withdraw at the same time, equals website issues. Either way, please DYOR if you have your funds in Gemini. Now obviously we will continue to keep an eye on this, but in the meantime, it is probably a good time to withdraw your assets to self custody if you haven't done so already. Now with that let's shift to some of those macro stories that I mentioned we haven't had a chance to cover. And to be clear, there's not necessarily a theme here just the latest things that are important to note. Let's start with the CPI.
CoinDesk Podcast Network
"genesis global capital" Discussed on CoinDesk Podcast Network
"The breakdown is sponsored by nexo IO, circle, and kraken, and produced and distributed by coindesk. What's going on guys? It is Wednesday, November 16th and today we are catching up on FTX contagion as well as some interesting things from the macro world. Before we get into that, however, if you are enjoying the breakdown, please go subscribe to it, give it a listen, give it a review, or if you want to dive deeper into the conversation. Come join us on the breakers Discord. You can find a link in the show notes or go to bit LY slash breakdown pod. All right guys, how is everyone doing out there? Now, I mentioned it yesterday, but I wanted to tell you again about the upcoming grateful for Bitcoin series next week. I've started recording those interviews as of today, including one about Bitcoin gas flare mining today that I think you're really going to like. I also want to say welcome once again to kraken as a partner for the breakdowns back to basics theme throughout the rest of this year. Now today, I want to catch up on a few of the macro stories we've missed as we've been very understandably focused on the crypto industry, but unfortunately first we do have to look at the latest contagion from FTX collapse. Genesis trading is one of the larger players in the institutional crypto space. They're one of The Crown jewels in the digital currency group empire, which should be noted also includes coin desk. They're lending arm is called genesis global capital. And at the end of the third quarter, it had $2.8 billion in total active loans. Now, genesis has had a rough year. They suffered 9 figure losses a few $100 million through their exposure to three arrows capital and Babel finance earlier this year. In June, Michael morrow said, as we already stated on June 17th, we mitigated our losses with a large counterparty who failed to meet a margin call to us. We sold collateral hedged our downside and moved on. Our business continues to operate normally and we are meeting all of our clients needs. Now still losing a few $100 million is going to have some consequences and in the wake of all this CEO Michael morrow stepped down. Perhaps unsurprisingly then when FTX collapsed, one of the big questions was what exposure genesis had. Initially, they said they only had something like $7 million of exposure, but then that was revised up to about a $175 million in locked funds in its FTX trading account. Because of this last week, DCG decided to strengthen their balance sheet with an equity infusion of a $140 million. In spite of this, last night, rumors of solvency issues were perhaps liquidity issues, started to make their way to Twitter. Satoshi stacker wrote breaking, there are rumors about genesis trading being insolvent despite receiving an infusion of a $140 million a few days ago. The parent company of genesis DCG, which is also the parent company of grayscale. Grayscale is one of the largest holders of Bitcoin worth $11 billion. This morning it was revealed that the issue was not with genesis trading, but with genesis capital. Frank chaparro from the block tweeted genesis just held a 7 minute call with clients to let them know withdrawal requests for genesis capital have exceeded their liquidity profile. CEO says he's working on a plan with advisers to fix their liquidity profile and serve clients. Amanda cowie vice president of communications and marketing at DCG released a statement that said, today, genesis global capital, genesis lending business, made the difficult decision to temporarily suspend redemptions and new loan originations. This decision was made in response to the extreme market dislocation and loss of industry confidence caused by the FTX implosion. This decision impacts the lending business at genesis and does not affect genesis trading or custody businesses. Importantly, this decision has no impact on the business operations of DCG and our other wholly owned subsidiaries. Still one of the fallouts from the genesis capital withdrawal shutdown is the Gemini earn program. The team at Gemini released a statement this morning that says, we are aware that genesis global capital, the lending partner of the urn program, has paused withdrawals and will not be able to meet customer redemptions within the service level agreement of 5 business days. We're working with the genesis team to help customers redeem their funds from the earned program as quickly as possible. We will provide more information in the coming days. This past week has been an incredibly challenging and stressful time for our industry. We are disappointed that the earned program SLA will not be met, but we are encouraged by genesis and its parent company digital currency group's commitment to doing everything in their power to fulfill their obligations to customers under the urn program. We will continue to work with them on behalf of all earned customers. This is our highest priority. We greatly appreciate
Simply Bitcoin
"genesis global capital" Discussed on Simply Bitcoin
"Do you really trust FTX was trusted? Remember mister wonderful going out, I love to trust Sam, his parents were his parents were regulators. Of course I'm going to trust them. Well, that fucked up, didn't it? What were some of the other actors or sports stars Tom Brady? We had Matt Damon. It's just a giant cluster fuck and it's a vindication of what bitcoiners have been saying and screaming from the rooftops, maddow Dell's famous line. Stay humble stack sats. And of course, not your keys, not your Bitcoin. Anyways, moving on to genesis. This is the latest thing to fall. Another one bites the dust. Genesis crypto lending unit is halting customer withdrawals and wake of FTX collapse. The lending arm of crypto investment bank genus global trading is temporarily suspending redemptions and new loan originations in the wake of FTX collapse interim CEO drar Isla, Islam, told customers on a call Wednesday. The unit known as genesis global capital services as an institutional client base and had 2.8 billion in total active loans as at the end of the third quarter of 2022. Genesis trading, which acts as genesis global's capital's broker dealer is independently capitalized and operates separately from the lending arm is said he added that genesis trading and custodial servants remain fully operational. It's interesting. Genesis, now this is really funny. Genesis owner digital currency group is also the parent company of coin desk. That's right. The people the people that the news site that I'm getting this information from coin desk is also somehow involved in this cluster fuck contagion of these shitcoin exchanges going down. Today, genesis global capital, genesis lending businesses made it the difficult decision to temporarily suspend redemptions and new loan originations. It's funny. It's funny. Remember how I told you guys that cryptocurrency crypto better set is a hundred times Fiat. You know who also loves that word temporarily governments. That's exactly the word that Richard Nixon said when he took the U.S. off the gold standard.