EddieJayonCrypto
20 Jan 23
• Genesis and subsidiaries file for bankruptcy protection• Gemini prepares to take legal action against DCG, Genesis and Barry Silbert• Charles Hoskinson has expressed interest in purchasing CoinDesk to bring back journalistic integrity• Swiss judge rules in favor of shareholders to audit $715M of C...
• Genesis and subsidiaries file for bankruptcy protection• Gemini prepares to take legal action against DCG, Genesis and Barry Silbert• Charles Hoskinson has expressed interest in purchasing CoinDesk to bring back journalistic integrity• Swiss judge rules in favor of shareholders to audit $715M of ConsenSys transactions• Nexo reaches $45M settlement with the SEC and several states• Nepal orders ISPs to block all sites related to BTC in an attempt to tamp down on crypto transactions• Moonstone Bank is 2nd to exit crypto in letter to clients telling them to move their assets• It looks like Peter Theil's Founders Fund sold $1B worth of crypto while he was saying BTC would reach 100x in coming months• For the first time, China's digital yuan is used in securities transactionsGenesis files for bankruptcy protection and there are more shoes to fall. Here is what is on my mind today.1. I recently told you that Genesis could file for chapter 11 bankruptcy protection and this morning, they have done just that. Genesis Global Holdco, LLC and its two subsidiaries filed a trio of voluntary petitions seeking the protection. It is estimated they have over 100K creditors and owe them between $4.4B and $10B in liabilities. They owe $3.5B to it top 50 creditors. I have been saying for a while this was the likely outcome and I am sure there will be more shoes to fall before the dust settles. It would also seem that Genesis may have been liquidating assets to the tune of almost $120M, as per PeckShield. 2. Immediately following the filings, Cameron Winklevoss, CEO of Gemini, threatened to take legal action given Genesis owes come of its clients a repayment of $900M. I don't think this is actually a threat. They have been preparing to take action and the bankruptcies will just be another catalyst to the inevitable. I am sure there is far more to come from this debacle, especially since I think the action will be against Barry Silbert and DCG directly. 3. I told you yesterday that CoinDesk was on the chopping block. Well, Charles Hoskinson of Cardano fame is interested in in buying the popular crypto news resources. His reason? "My interest on the media side is more broad. I would like to figure out how to get to journalistic integrity again." I have to say I am interested to see what CoinDesk would become with such an outspoken person at the helm. 4. ConsenSys, owner of crypto wallet MetaMask, is facing an audit called by shareholders. This stems from transactions between 2020 and 2022 that helped the US division raise $715M. A Swiss judge has sided with the shareholders to have the company audited specifically about those transactions. 5. Nexo reaches a settlement with the SEC of $45M. Half will go to the SEC and the other half will go to settle with state regulators. Now I am looking to see what Nexo does since this has been lifted off their back. 6. With rising transactions, the Nepalese government has ordered ISPs to block access to Bitcoin-related sites. This is a smaller country, but I am paying attention to what governments around the world are doing to attempt to tamp down on crypto use. 7. Moonstone Bank follows Silvergate's exit from the crypto market. They notified customers with digital assets to move them to alternative outlets. They are the second crypto-related bank to have done business with SBF/FTX and found itself having to get out of crypto. 8. Nobody should be shocked that Peter Thiel's Founders Fund made money cashing out $1B of crypto while he was out there telling people to look the other because Bitcoin was going to make 100x gains. 9. China is pushing their CBDC, digital yuan in 1st securities trades by Soochow Securities. What now?