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☆ The Justice Department just shut down little-known crypto exchange Bitzlato and arrested its Russian founder in what authorities claim is a huge blow to crypto crime
▼ + stars: | 2023-01-18 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +3 min

Bitzlato is a little-known crypto exchange that was just shut down by the Justice Department. FBI agents arrested Anatoly Legkodymov, the founder of crypto exchange Bitzlato, on Tuesday. US authorities alleged that the site laundered millions tied to illicit Russian finances. The Justice Department and Treasury Department allege that the Hong Kong-registered platform laundered more than $700 million, some of which were tied to illicit Russian finances. Bitzlato is a small crypto exchange, which hasn't received mainstream attention until Legkodymov's arrest.

☆ German online bank N26 to expand crypto trading
▼ + stars: | 2023-01-17 | by ( ) www.reuters.com time to read: +1 min

FRANKFURT, Jan 17 (Reuters) - German online bank N26 said on Tuesday that it would expand the list of countries where its customers may trade cryptocurrencies to include those in Germany and Switzerland. In addition, N26 said it would provide the service for customers in Belgium, Portugal and Ireland. Last year, N26 began offering crypto trading for some customers in Austria only, in its first foray into the asset class. N26 said it would roll out the expanded trading gradually over the coming weeks. Reporting by Tom Sims and Marta Orosz Editing by Miranda MurrayOur Standards: The Thomson Reuters Trust Principles.

☆ Crypto.com to cut 20% jobs as industry rout deepens after FTX collapse
▼ + stars: | 2023-01-13 | by ( ) www.reuters.com time to read: +1 min

Jan 13 (Reuters) - Crypto.com said on Friday it would be reducing about 20% of its workforce, as cryptocurrency exchanges face industry-wide challenges brought on by the collapse of FTX last year. A source told Reuters last week that Genesis, too, had cut jobs, equating to 30% of its workforce. Th recent FTX collapse "significantly damaged trust in the industry," Crypto.com Chief Executive Officer Kris Marszalek said in a statement. The collapse of Sam Bankman-Fried's FTX was the biggest in string of big crypto-related failures in 2022. It sparked a cryptocurrency rout and has left an estimated 1 million creditors facing losses of billions of dollars.

☆ Crypto lender Genesis reportedly owes creditors $3 billion, and is eyeing the sale of its parent company's venture assets to raise funds
▼ + stars: | 2023-01-12 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +3 min

Crypto lender Genesis owes its creditors more than $3 billion, the Financial Times reported on Thursday. Genesis' parent company DCG may sell assets in its venture portfolio to raise fresh cash. Genesis' lending arm took hits after FTX filed for bankruptcy, causing a liquidity crisis late last year. Digital Currency Group (DCG), the crypto conglomerate that oversees Genesis, is also looking to sell assets in its venture portfolio to raise fresh cash, per the Financial Times. In November, Gemini had to halt withdrawals for its interest-bearing product due to a liquidity crisis with Genesis, its lending partner.

☆ Crypto firms Genesis and Gemini charged by SEC with selling unregistered securities
▼ + stars: | 2023-01-12 | by ( Rohan Goswami | ) www.cnbc.com time to read: +3 min

The Securities and Exchange Commission on Thursday charged crypto firms Genesis and Gemini with allegedly selling unregistered securities in connection with a high-yield product offered to depositors. Gemini, a crypto exchange, and Genesis, a crypto lender, partnered in February 2021 on a Gemini product called Earn, which touted yields of up to 8% for customers. Genesis should have registered that product as a securities offering, SEC officials said. Gemini's Earn program, supported by Genesis' lending activities, met the SEC's definition by including both an investment contract and a note, SEC officials said. SEC officials said the possibility of a DCG or Genesis bankruptcy had no bearing on deciding whether to pursue a charge.

☆ Bitcoin rallies to a 2-month high after inflation data, shrugging off FTX and DCG troubles for now
▼ + stars: | 2023-01-12 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +4 min

The rally came after key inflation data raised hopes for a more favorable macro environment ahead. "While it's too early to count [the] chickens, the price action since yesterday has been encouraging," a crypto executive told Insider. Early Thursday, Consumer Price Index (CPI) data for December indicated that inflation pressures eased again, giving Federal Reserve officials leeway to slowdown rate hikes. Favorable inflation data ought to boost token prices and could "help the market cement [its] current rebound," said Wael Makarem, Senior Market Strategist at financial services firm Exness. Crypto markets endured a lengthy bear market through 2022.

☆ The DOJ is investigating whether 2 crypto developer brothers used 11 fake identities to triple-count deposits, report says
▼ + stars: | 2023-01-12 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

The DOJ is investigating two brothers behind a solana stablecoin exchange over alleged fraud, CoinDesk reported. The Macalinao brothers reportedly crafted 11 fake identities to triple-count crypto deposits to create a fake De-Fi ecosystem. The crypto industry is under heavy scrutiny following the collapse of Sam Bankman-Fried's FTX exchange. The investigation follows CoinDesk's earlier exposé in August which revealed the Macalinao brothers crafted a fake decentralized finance ecosystem by passing the triple-counted deposits between themselves. "The metric to optimize for in Summer 2021 was [total value locked (TVL)]" Ian Macalinao wrote in an unpublished blog discovered by CoinDesk.

☆ Cryptoverse: Bitcoin digs in for a bumpy new year
▼ + stars: | 2023-01-10 | by ( Lisa Pauline Mattackal | ) www.reuters.com time to read: +4 min

[1/2] Bitcoin are seen in this illustration picture taken September 27, 2017. The overall global crypto market cap has risen 5% to $871 billion since Jan. 1, but it's still down over 57% from this time last year. Bitcoin itself has gained 4.3% since the start of 2023, though stuck in a narrow range between $16,500 and $17,300. For some market players, though, subdued sounds pretty good after the bitcoin bloodbath of 2022. Reuters GraphicsTHE BULL'S TALEMarcus Sotiriou, analyst at digital asset broker GlobalBlock, pointed to tightening Bollinger bands - a technical indicator tracking price and volatility - on bitcoin charts.

☆ Thought last year was bad for crypto? From FTX to Silvergate, the red flags are flying for the year ahead.
▼ + stars: | 2023-01-06 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

Those realizations came to head repeatedly in 2022 as crypto hacks and a wintry bear market crescendoed with the collapse of Sam Bankman-Fried's FTX. On a macro level, persistent recession fears make speculative assets such as tokens or tech stocks less enticing. More notable is crypto bank Silvergate's nearly 50% plunge Thursday, and the company's announcement it would cut 40% of its staff. Job cuts at Amazon and Salesforce signal the first necessary step in staging a turnaround for tech stocks. All told, analysts predict layoffs could catalyze a 20% rally for tech stocks in 2023.

☆ Binance grabbed 66% of crypto trading volumes on centralized exchanges in the 4th quarter of 2022 as the industry consolidated following the fall of FTX
▼ + stars: | 2023-01-04 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +3 min

Binance captured 66.7% of all trading volume on centralized crypto exchanges in the last quarter of 2022. Trading volumes on centralized exchanges declined 46.2% last year amid a harsh macro environment and crypto bear market. Even as spot trading volumes on Binance fell 45.3% to $5.29 trillion, the rise in the exchange's market dominance continued throughout 2022. Amid a lengthy crypto bear market, trading volumes on centralized exchanges declined 46.2% in 2022. Volumes across centralized exchanges, or CEXs, stayed well above decentralized exchanges, or DEXs, according to the report.

☆ The ultimate insider's guide to the dramatic downfall of Sam Bankman-Fried, Caroline Ellison, and FTX
▼ + stars: | 2023-01-01 | by ( Sindhu Sundar | ) www.businessinsider.com time to read: +11 min

Sam Bankman-Fried is facing criminal charges and is expected to enter a plea on Jan. 3. Read Insider's coverage of Bankman-Fried:FTX founder Sam Bankman-Fried gets by on 4 hours' sleep and multitasks on 6 screens. Now hit with 7 criminal charges, Ellison has pleaded guilty and expressed contrition before the New York federal court presiding over the criminal cases involving Bankman-Fried. Sam Bankman-Fried is in jail, but legal watchers are wondering: Where's ex-girlfriend Caroline Ellison? Sam Bankman-Fried hit with 8 criminal charges, including fraud and conspiracy for allegedly 'misappropriating' FTX customer fundsThe SEC has charged Sam Bankman-Fried and accused him of 'orchestrating a massive, years-long fraud'The criminal charges against Sam Bankman-Fried carry big penalties and jail time if proven, legal experts sayRead the CFTC complaint against FTX's Sam Bankman-Fried and his associates Caroline Ellison and Gary WangThe charges against Caroline Ellison, SBF, and FTX cofounder Gary Wang — in 60 seconds

☆ Sam Bankman-Fried's FTX collapse is a nightmare of shady finances - and these bizarre schemes emerged recently
▼ + stars: | 2022-12-31 | by ( Phil Rosen | ) www.businessinsider.com time to read: +4 min

Recently, it emerged that FTX reportedly told customers to wire money to a little-known, fake electronics retailer website. One SEC complaint said FTX told customers to wire money to a subsidiary that was a little-known fake online electronics retailer. "FTX was an opaque company that was so centralized it relied entirely on one person," Andrew Yeoh, chief marketing officer of Web3 firm Nillion, told Insider. He has denied criminal liability and is due to appear in a New York federal court on January 3 for charges of wire fraud and conspiracy. "The point of crypto is that it's fully decentralized and trustless," he told Insider.

☆ How 2022 shocked, rocked and rolled global markets
▼ + stars: | 2022-12-30 | by ( Marc Jones | ) www.reuters.com time to read: +6 min

The main drivers have been the war in Ukraine, combined with rampant inflation as global economies broke out of the pandemic, but China remained shackled by it. U.S. Treasuries and German bonds, the benchmarks of global borrowing markets and traditional go-to assets in troubled times, lost 17% and 25% respectively in dollar terms. Ten-year Treasury yields jumped to 1.8% from less than 1.5%, knocking 5% off MSCI's world stocks index (.MIWD00000PUS) in January alone. The Fed has delivered an eye-watering 400bps of rate hikes and the European Central Bank, a record 250bps, despite saying this time last year it was unlikely to budge. "What has gone in global markets this year has been traumatic," said EFG Bank Chief Economist and ex-Deputy Governor of Ireland's central bank, Stefan Gerlach.

☆ Inside the relationship between Sam Bankman-Fried's FTX and Solana, the blockchain he championed whose token is down 96% from its highs
▼ + stars: | 2022-12-29 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +4 min

Sam Bankman-Fried was a big supporter of Solana, the layer-1 blockchain that bills itself as a faster alternative to Ethereum's network. He backed projects on its ecosystem, and his firms amassed huge sums of the blockchain's native token, also called Solana (SOL). The disgraced former crypto mogul backed projects in its ecosystem, and his firms amassed huge sums of the blockchain's native token, also called Solana (SOL). Meanwhile, Bankman-Fried's hedge fund Alameda Research and crypto exchange FTX purchased large sums of SOL tokens from the Solana Foundation, the nonprofit that supports the blockchain, and Solana Labs, the blockchain's developer. That's despite the fact that around 80% of projects on Solana's blockchain had zero exposure to FTX, Yakovenko told Bloomberg.

☆ Crypto exchange Kraken to stop operations in Japan
▼ + stars: | 2022-12-28 | by ( ) www.reuters.com time to read: +1 min

Dec 28 (Reuters) - U.S.-based crypto exchange Kraken said on Wednesday it would cease its operations in Japan next month, citing the current market conditions in the country and a weak crypto market globally. Kraken will deregister from the Financial Services Agency (JFSA) as of Jan. 31, by which time clients would have to withdraw their fiat and crypto holdings, it said in a statement. Kraken said it is fully funded to ensure that all affected clients could withdraw their assets in a timely manner. Last month, Kraken said it would reduce its workforce by 30%, or about 1,100 employees, as tough market conditions had crippled demand for digital assets. Bitcoin, the pre-eminent cryptocurrency, has lost 60% of its value this year, while the wider crypto market has shrunk by $1.4 trillion, squashed by the collapse of Sam Bankman-Fried's FTX empire, Celsius and supposed 'stablecoins' terraUSD and Luna.

☆ Sam Bankman-Fried's FTX saga keeps getting weirder as new details shed further light on how much his company's finances overlapped.
▼ + stars: | 2022-12-28 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

More details are sure to emerge, but there's already enough fodder for a spectacular thriller novel on par with "The Big Short." A closer scrutiny of court documents reveal an underlying theme of commingled funds, overlapping and mixed finances, and inexcusable, messy bookkeeping. Bankman-Fried's entire enterprise — counting FTX, his hedge fund Alameda Research, as well as scores of smaller entities — were steeped in one another's funds. There's a chance that those who end up in the most financial pain will be everyday investors who, like some institutional investors, trusted their funds to FTX. The CIO of a top-performing fund said 2023's stock market will present a tale of two halves.

☆ FTX customers sent money to a fake electronics retailer with a website full of misspelled words that was key to funding SBF's Alameda, report says
▼ + stars: | 2022-12-27 | by ( Phil Rosen | ) www.businessinsider.com time to read: +3 min

Sam Bankman-Fried's FTX had customers wire money to North Dimension, a mysterious company with a fake electronics retail website, NBC News reported. Money sent to North Dimension would end up funding Alameda Research's trading activity, the SEC alleged. The North Dimension website has been deactivated, but had misspelled words and claimed to sell laptops and phones. And according to NBC News, North Dimension operated a fake online electronics retail shop, which has now been disabled and archived. Some of the items listed on North Dimension showed "sale" prices that were retailing well above their normal price, per NBC News.

Dec 22 (Reuters) - FTX founder and former Chief Executive Sam Bankman-Fried, who faces U.S. fraud charges over the collapse of FTX, ran his crypto empire with a number of associates. GARY WANGGary Wang co-founded FTX and Alameda Research with Bankman-Fried, and served as FTX's chief technology officer. He and Bankman-Fried met at a math camp in high school and became college roommates, Bankman-Fried wrote in a now-unavailable FTX blog. Wang worked as a software engineer at Google before co-founding FTX and Alameda, according to an archived webpage for the FTX Future Fund, the company's charitable effort. NISHAD SINGHNishad Singh was a best friend of Bankman-Fried's brother in high school, Bankman-Fried wrote in the deleted blog post.

Ben McMillan, chief investment officer at IDX Digital Assets, said the rising popularity of blockchain-based tools including decentralized exchanges and decentralized finance had also been an important development this year. "We could see bigger allocations to digital assets once risk appetite resumes in 2023." Bitcoin and other tokens took a hammering, slumping by over half in just 49 days from the end of May. On a single day in June, bitcoin fell over 15%, its worst day since March 2020 when COVID chaos roiled financial markets. Bitcoin fell by a quarter in less than four days as Bankman-Fried scrambled for funds to bail his exchange out.

☆ Crypto contagion isn't over and the lack of transparency means the industry is an 'insider's game,' EY strategist says
▼ + stars: | 2022-12-20 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

FTX's collapse shows that crypto contagion isn't over and the industry has transparency issues, according to EY strategist Paul Brody. Brody noted that transparency claims made by crypto firms were often "difficult to test," which makes the industry an "insider's game." Policymakers have urged the SEC to tighten regulation on crypto firms, criticizing the current hands-off approach. He noted that his own team finds transparency claims among crypto firms "difficult to test and follow through." Lawmakers have been critical of the SEC's current approach, which asks crypto firms to "come in and talk" to be regulated.

☆ Cryptocurrencies at crossroads after annus horribilis
▼ + stars: | 2022-12-20 | by ( Vidya Ranganathan | ) www.reuters.com time to read: +4 min

SINGAPORE, Dec 20 (Reuters) - To borrow from Britain's Queen Elizabeth, 2022 is not a year on which the cryptocurrency world shall look back with undiluted pleasure. Crashes, contagion, collapses came in such quick succession that investors were, towards the end of the year, asking serious existential questions. After all, the largest cryptocurrency, bitcoin , has not kept its head above water for more than a week at a time, and is down about three-quarters from last November's $69,000 peak. What some saw as the final nail in the crypto coffin was the collapse of Sam Bankman-Fried's FTX exchange last month. Rather, 2022 has become the "I-told-you-so" case for regulators, who've largely maintained an arm's length from the crypto world or even banned trading in cryptocurrencies.

☆ Sam Bankman-Fried's FTX wants to sell some of its last remaining solvent businesses as its restructuring process picks up
▼ + stars: | 2022-12-16 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +4 min

FTX wants to sell some of its last functioning business units, according to a court filing. The embattled company has petitioned a federal court for permission to sell several of its subsidiaries, including US derivatives platform LedgerX, as the troubled firm's restructuring process picks up. Company attorneys say it's a "priority" for FTX to "explore sales" and "strategic transactions" of some of its remaining businesses, according to a court filing on Thursday. The filing continued: "The Debtors believe a number of these entities have solvent balance sheets, independent management and valuable franchises." FTX wants to sell these businesses fast, according to the court document, which indicated that some of the entities have had their operating licenses suspended following FTX's collapse.

☆ Sam Bankman-Fried's FTX had the corporate governance of a college fraternity, congressman says
▼ + stars: | 2022-12-15 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +3 min

A congressman likened collapsed exchange FTX's corporate governance to a college fraternity. "It would be laughable were it not so serious," congressman Ritchie Torres said. In reality, the company was more like a college fraternity, congressman Ritchie Torres says, with haphazard and reckless bookkeeping practices. "FTX had the corporate governance of a fraternity," Torres, a member of the House Financial Services Committee, told Coindesk TV on Wednesday. The now-bankrupt exchange used QuickBooks, an accounting software generally used by smaller businesses, not multi-billion dollar companies.

☆ The CEO of Coinbase says the exchange will see revenue plunge at least 50% in 2022 as turmoil weighs on crypto markets
▼ + stars: | 2022-12-08 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +2 min

Coinbase CEO Brian Armstrong expects the company's revenue to dive at least 50% in 2022. The crypto exchange cut 18% of its staff earlier this year, slashing roughly 1,200 roles. "(Armstrong) indicated that he expects Coinbase FY2022 revenue to be less than half of FY2021 revenue," the company tweeted on Wednesday. The warning comes after Coinbase cut 18% of its workforce in June, slashing around 1,200 employees. The crypto market took another hit last month, when Sam Bankman-Fried's FTX, which was once valued at $30 billion, filed for bankruptcy.

☆ Sam Bankman-Fried gave $2.5 million to a leading political ethics watchdog. The group says it can't give the money back because officials already spent it.
▼ + stars: | 2022-12-08 | by ( Dave Levinthal | ) www.businessinsider.com time to read: +10 min

The Campaign Legal Center fights against lawlessness and unethical behavior in politics. Brendan Quinn, a spokesperson for the Campaign Legal Center, says the nonprofit organization cannot return or give away Bankman-Fried's money because the money is already spent. Asked whether the Campaign Legal Center would consider disgorging an amount of money equivalent to what Bankman-Fried contributed, Quinn noted that the Campaign Legal Center is not a political candidate or committee. The Campaign Legal Center has not yet provided Insider a copy, first requested December 2, of the most recent IRS 990 tax document filed by Campaign Legal Center Action, its advocacy arm. Former President Donald Trump has been a frequent target of the Campaign Legal Center's legal and ethics efforts.

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