Genesis files for bankruptcy, FTX explores a reboot, and Bitzlato…

Top Stories This Week

Crypto lender Genesis files for Chapter 11 bankruptcy

FTX contagions continue to spread through the crypto industry, with Genesis Capital filing for bankruptcy protection in New York, estimating liabilities in the range of $1 billion to $10 billion, and assets at the same level. The company plans a “dual track process,” which will pursue “sale, capital raise, and/or an equitization transaction” and enable the business “to emerge under new ownership.” Genesis’ derivatives, spot trading, broker-dealer and custody businesses are not included in the proceedings, according to the company. In an effort to maintain liquidity, Genesis parent company Digital Currency Group suspended dividend withdrawals.

Bitzlato and its founder face enforcement actions from US authorities

United States authorities have taken enforcement actions against crypto firm Bitzlato, seizing the company’s website and labeling the business as a “primary money laundering concern” connected to Russian illicit finance. As part of the case, FBI officials arrested Russian national Anatoly Legkodymov in Miami. The criminal complaint claims the firm was a “crucial financial resource” for the Hydra darknet marketplace, allowing users to launder funds, including those from ransomware attacks.

FTX CEO says he is exploring rebooting the exchange

New FTX CEO John Ray, appointed before the bankruptcy proceedings, has set up a task force to consider relaunching FTX.com. He noted in an interview that everything is “on the table” when it comes to the future of FTX.com, including a potential path forward with regard to rebooting the exchange. In another headline in the case, former FTX CEO Sam Bankman-Fried has been accused of using his influence in the crypto industry to inflate some coins’ prices through a coordinated strategy with Alameda Research. Bankruptcy proceedings are facing challenges, as liquidators of Alameda have suffered at least $11.5 million in losses since taking control of its trading accounts..

Iran and Russia want to issue new stablecoin backed by gold

The Central Bank of Iran is reportedly cooperating with the Russian government to jointly issue a new stablecoin backed by gold. The “token of the Persian Gulf region” would serve as a payment method in foreign trade instead of fiat currencies like the United States dollar, the Russian ruble or the Iranian rial. The new cryptocurrency would operate in a special economic zone in Astrakhan, where Russia accepts Iranian cargo shipments.

3AC, Coinflex founders collaborating to raise $25M for new claims trading exchange

Co-founders of collapsed crypto hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, are trying to raise money for a new cryptocurrency exchange in partnership with Coinflex co-founders Mark Lamb and Sudhu Arumugam. According to a pitch deck, they are looking to raise $25 million. The new exchange will be called GTX, and it will target claims against bankrupt companies, allowing customers to use claims as collateral for trading. The initiative drew criticism from the crypto community.

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $21,856, Ether (ETH) at $1,621 and XRP at $0.40. The total market cap is at $1.00 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Frax Share (FXS) at 67.88%, Hedera (HBAR) at 45.32% and Convex Finance (CVX) at 44.01%.

The top three altcoin losers of the week are Gala (GALA) at -8.20%, Huobi Token (HT) at -6.34% and Trust Wallet Token (TWT) at -3.47%.

For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

Most Memorable Quotations

“Crypto is getting very interesting because we’re finally starting to see the bear of regulation coming into play and I think, long term, that’s a good thing.”

Kevin O’Leary, venture capital investor

“I…