Genesis bankruptcy filings

Crypto Outlook at the World Economic Forum

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

The bankruptcy filing has been expected since the November fall of cryptocurrency exchange FTX.

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

The US Department of Justice released a vague statement on Wednesday that it would “announce major, international cryptocurrency enforcement action,” and noted that the US Treasury Department would also issue its own statement.

The announcement comes at a time when former FTX Crypto Exchange CEO Sam Bankman-Fried faces charges of wire fraud, securities fraud and conspiracy. The DOJ stressed that criminals using crypto space for scams and other criminal activities should be aware that the agency will use “every tool” to suppress their activities.

Mr Bankman-Fried’s company – long considered one of the largest crypto exchanges alongside Binance – has declared bankruptcy after allegedly using and losing client funds as investment capital.

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FBI says it will ‘relentlessly’ pursue cybercriminals

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

“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,” he said, according to the DOJ. . “We, along with our federal and international partners, will work tirelessly to disrupt and dismantle these types of criminal enterprises. Today’s arrest should remind us that the FBI will impose risks and consequences on those who engage in these activities.

Mr. Legkodymov, a Russian national living in China, was arrested in Miami on Wednesday.

Graig GraziosiJanuary 19, 2023 06:00

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

Several financial leaders speaking at the World Economic Forum in Davos made it clear that they do not trust cryptocurrencies and insisted to attendees that traditional investment and banking institutions were still safe to use. .

Singapore’s Chief Minister Tharman Shanmugaratnam said crypto assets were “a bit crazy”, prompting laughter from the audience, according to Iris Market IQ.

UBS Chairman Colm Kelleher said regulators have faltered in their ability to police “non-bank” entities, which include cryptocurrencies.

“Regulators have – with respect – averted their eyes from the non-banking sector,” Kelleher said, according to Reuters.

François Villeroy de Galhau, a member of the Governing Council of the European Central Bank, agreed, saying that “we should rush towards urgent non-banking regulation starting with cryptos”.

Graig GraziosiJanuary 19, 2023 04:59

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DOJ says Bitzlato chief knew Hydra transactions were illicit, customers were ‘known to be crooks’

The Justice Ministry claimed that Bitzlato founder Anatoly Legkodymov was aware of the illicit nature of trading on Hydra’s marketplace and knew that its users were using fake identities when trading.

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

According to internal chat logs obtained by the DOJ, Mr. Legkodymov wrote to a colleague that their clients were “known to be scammers.” Bitzlato officials allegedly warned the founder that his users were “drug addicts who buy drugs [at Hydra]and “drug dealers”.

Graig GraziosiJanuary 19, 2023 04:00

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ICYMI: Crypto Market Cap Briefly Hit $1 Trillion Before Plunging

Earlier today, the crypto market cap hit $1 trillion for the first time since November, just ahead of the 2022 selloff and FTX crash.

It is unclear whether the decline was the result of the DOJ announcement, or traders selling at the higher price, or both.

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

Graig GraziosiJanuary 19, 2023 03:00

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What is ‘Hydra Market’?

What was “Hydra Market”, the darknet black market that was one of Bitzlato’s biggest clients?

According to the Department of Justice, Hydra Market is “an anonymous and illicit online marketplace for narcotics, stolen financial information, fraudulent identity documents and money laundering services that was the largest and oldest darknet market in the world”.

“Hydra Market users traded over $700 million in cryptocurrency with Bitzlato, either directly or through intermediaries, until Hydra Market was shut down by law enforcement American and German in April 2022,” the DOJ wrote. “Bitzlato also received over $15 million in ransomware proceeds.”

Graig GraziosiJanuary 19, 2023 02:00

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ICYMI: Bitcoin Price Crashes Amid Major DOJ Crypto Announcement

The price of bitcoin fell 5% in the space of an hour after the US Department of Justice announced plans to introduce major international cryptocurrency enforcement measures.

The global crypto leader rose from $21,500 to around $20,500, reversing an upward trend that had seen its price rise by almost a third since the start of the year.

Learn more about The Independents Anthony Cuthbertson in his story below…

Graig GraziosiJanuary 19, 2023 01:00

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Economist ‘Dr Doom’ Says ‘90% of Crypto is a Scam’ in Davos

Dr Nouriel Roubini – sometimes referred to as “Dr Doom” for his bleak economic forecasts – declared that “literally 90% of crypto is a scam” during the World Economic Forum in Davos on Wednesday.

“FTX and SBF are not an exception – they are a rule,” he said during a Yahoo finance an event.

He then predicted an upcoming bust.

“Literally, 90% of crypto is a scam. Criminal activity,” he said. “A real bubble Ponzi scheme that goes bankrupt.”

Graig GraziosiJanuary 19, 2023 12:00 a.m.

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ICYMI: Closed Crypto Crime Network Delivers ‘Heavy Blow’ to Fraudsters, DOJ Says

The US Department of Justice announced that it had dealt a “crushing blow” to the crypto crime landscape after arresting a Russian national suspected of founding a major online criminal platform.

Cryptocurrency exchange Bitzlato has processed more than $700 million in illicit funds, according to the DOJ, advertising its services to users “known to be scammers”.

Alleged founder Anatoly Legkodymov was arrested in Miami on Tuesday. Learn more about The Independents Anthony Cuthbertson in his story below…

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

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

China-based cryptocurrency exchange Bitzlato – whose CEO Anatoly Legkodymov was arrested by the DOJ in Miami on Tuesday – responds to its customers through an automated message on Telegraph with the phrase “oops, sorry” with a sad face emoji, according to NBC News.

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

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

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Influencer Logan Paul lays out a roadmap for dealing with the Crypto Zoo scandal

Influencer Logan Paul announced on Tuesday that he’s come up with a three-step plan to correct course on his Crypto Zoo NFT game, which fellow YouTuber Coffeezilla claimed was a “scam” in a trio of investigative videos reviewing the project and the investors who lost money on the seemingly abandoned project.

Paul – who initially threatened to sue Coffeezilla but has since backed off – said he and Crypto Zoo co-founder Jeff Levin would burn their tokens to ensure they had no financial interest in the NFT game project.

He also said he would personally invest 1,000 ETH – about $1.5 million at the current market price – to repay Zoo token holders the original price of 150 ETH – just over $225,000 at the current price. – as long as they burn their chips.

This refund would not reimburse Zoo token investors who sold for more than a year when the Crypto Zoo project was dormant.

His third step is to complete the game as originally announced by Paul over a year ago.

Graig GraziosiJanuary 18, 2023 8:51 p.m.

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