Genesis Bankruptcy Filings – Latest: Crypto Lender Files for Bankruptcy Amid ‘Big’ DOJ Move

Crypto Outlook at the World Economic Forum

Bloomberg reported today that Genesis Global Capital plans to file for bankruptcy as early as this week.

It has been expected to file for bankruptcy since the fall of cryptocurrency exchange FTX in November.

Meanwhile, the US Department of Justice announced that Anatoly Legkodimov, the Russian operator of the China-based crypto exchange Bitzlato, had been arrested. Bitzlato was a cryptocurrency exchange that allegedly worked with black market cryptocurrency Hydra, which dealt in illicit trade and served as a safe haven for ransomware attackers, according to the Justice Department.

The US Department of Justice issued a vague statement on Wednesday that it “will announce a major international action to enforce cryptocurrency,” noting that the US Treasury Department will also issue a statement of its own.

The announcement comes as Sam Bankman-Fred, the former CEO of cryptocurrency exchange FTX, faces charges of wire fraud, securities fraud and conspiracy. The DOJ stressed that criminals who use the crypto space for fraud and other criminal activities should be aware that the agency will use “every tool” to suppress their activities.

Bankman-Fried — which has long been considered one of the largest cryptocurrency exchanges along with Binance — has declared bankruptcy after allegedly using and losing customer funds as investment capital.

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Cryptocurrency companies reduce their appearances in Davos after a year of losses and scandals

Cryptocurrency companies have dominated the park at the Davos World Economic Forum in recent years, but this year they seem to have reduced their visibility. CNBC reports.

With the exception of the only sports car with crypto-orange ads, crypto-company ads were reportedly less popular this year.

An NFT store that used to sell digital tokens along with images closed this year after the asset’s prices fell dramatically in 2022.

Cliff Sarkin, Casper Labs’ head of strategic relations, told the outlet that the crypto businesses remaining in Davos are “subprojects” and “real deals.”

Greg GraziosiJanuary 19, 2023 07:00

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FBI says it will pursue cryptocurrency criminals ‘relentlessly’

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

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

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

Greg GraziosiJanuary 19, 2023 06:00

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At the Davos World Economic Forum crypto bash, financial leaders insist traditional institutions are safe

Several financial leaders speaking at the Davos World Economic Forum made it clear that they don’t trust cryptocurrencies, and insisted to attendees that traditional investment and banking institutions are still safe to use.

Senior Minister Tharman Shanmugaratnam of Singapore said the crypto assets were “a little crazy,” prompting laughter from the crowd, according to a report. Iris Market IQ.

UBS President Colm Kelleher said regulators had stumbled on their ability to police “non-bank” entities, which includes cryptocurrencies.

“Regulators – with respect – have taken their eyes off the ball as far as the non-banking sector is concerned,” Kelleher said, according to Reuters.

ECB Governing Council member François Villeroy de Gallau agreed, saying, “We must rush to some urgent non-banking regulation starting with cryptocurrencies.”

Greg GraziosiJan 19, 2023 04:59

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DOJ says Bitzlato boss knew Hydra’s transactions were illegal, clients were ‘notoriously fraudulent’

The Justice Department alleged that Bitzlato’s founder, Anatoly Legkodimov, knew about the illicit nature of Hydra’s marketplace transactions, and knew that its users were using fake identities while making transactions.

“Bitzlato customers routinely used the company’s customer service portal to request support for transactions with Hydra, which Bitzlato often provided, and admitted in conversations with Bitzlato employees that they were trading under assumed identities,” the DOJ said. Furthermore, the administrators of Legkodymov and other Bitzlato were aware that Bitzlato accounts were riddled with illicit activity and that many of its users were registered under the identities of others.

According to internal chat records obtained by the Justice Department, Mr. Legkodimov wrote to a colleague that their clients were “notoriously fraudulent.” Officials at Bitzlato reportedly warned the founder that its users are “addicts who buy drugs.” [at Hydra]and drug dealers.

Greg GraziosiJanuary 19, 2023 04:00

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ICYMI: Cryptocurrency Market Cap Hit $1 Trillion Briefly Before Diving In

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

It’s unclear if the drop was due to the DOJ announcement, traders selling at a premium, or both.

Despite the decline, bitcoin remains popular with investors, gaining 30 percent this year.

Greg GraziosiJanuary 19, 2023 03:00

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What was the “Hydra Market”?

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

According to the Department of Justice, Hydra Market is “an anonymous, illicit online marketplace for drugs, stolen financial information, fraudulent identity documents, and money laundering services that has been the largest and longest-running darknet market in the world.”

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

Greg GraziosiJanuary 19, 2023 02:00

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ICYMI: Bitcoin Price Drops Amid Major Department of Justice Announcement on Crypto

price bitcoin It fell 5 percent within an hour after the US Department of Justice announced plans to offer major international services Cryptocurrency enforcement actions.

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

Read more The Independent Anthony Cuthbertson in his story below…

Greg GraziosiJanuary 19, 2023 01:00

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Economist Dr. Doom says that “90 percent of cryptocurrency is a scam” in Davos

Dr. Nouriel Roubini — who is sometimes called “Dr. Doom” because of his grim economic forecasts — said that “90 percent of cryptocurrency is a scam” during the Davos World Economic Forum on Wednesday.

“FTX and SBF are no exception — they are a rule,” Thrall said Yahoo Finance It happened.

He went on to predict an imminent bust.

90% of cryptocurrency is a scam. He said. “The whole real bubble Ponzi scheme is collapsing.”

Greg GraziosiJanuary 19, 2023 00:00

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ICYMI: Crypto crime network has been shut down in a “major blow” to scammers, the Department of Justice announced

The US Department of Justice has announced that it has dealt a “major blow” to the crypto-crime scene after the arrest of a Russian national who allegedly founded a major online criminal platform.

Cryptocurrency exchange Bitzlato has processed more than $700 million in illicit funds, according to the Department of Justice, and advertised its services to users “known to be fraudulent.”

Alleged founder Anatoly Legkodimov was arrested in Miami on Tuesday. Read more The Independent Anthony Cuthbertson in his story below…

Greg GraziosiJanuary 18, 2023 23:00

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The cryptocurrency exchange targeted by the DOJ responds with an “oops, sorry” to customers on the automated social media channel

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

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

Greg GraziosiJanuary 18, 2023 21:30

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