21 January

“Bitcoin soared past $22,000, its highest level since mid-September, as the broader cryptocurrency market continued its 2023 rally.

The largest cryptocurrency by market capitalization was recently trading as high as $22,387, up 5.4% over the previous 24 hours, shrugging off the announcement late Thursday that Genesis Global Holdco LLC, the holding company of troubled cryptocurrency lender Genesis Global Capital, had filed for Chapter 11 bankruptcy protection late Thursday. Edward Moya, senior market analyst for foreign exchange market maker Oanda, noted Thursday that investors had priced in Genesis’ looming problems.

BTC has climbed 11% in the past seven days and is up 34% for the year. ETH has jumped 12% over the past week and is up 37% since Dec. 31. Crypto-related stocks also benefited from the rally Friday: Exchange Coinbase (COIN) was recently up 10% while bitcoin miner Marathon Digital Holdings (MARA) surged 9%.

Traditional markets also edged up, with the S&P 500 index up 1.9%, as investors processed a flurry of mixed earnings reports from big banks.

This week’s larger-than-expected decline in the producer price index (PPI) indicated the U.S. Federal Reserve’s monetary hawkishness has been taming inflation, buoying investors. The CME FedWatch tool currently shows that traders see roughly a 97% chance that the Federal Open Market Committee (FOMC) will raise rates by just 25 basis points (0.25 percentage point) at its next meeting in February – slowing from the 50 basis-point hikes in the December meeting.”

See Also: Genesis’ Crypto Trading Arm Is Moving Money Around, a Sign of Normalcy Amid Sibling’s Bankruptcy

Winklevoss called the lender’s bankruptcy a “crucial step” toward recovering Gemini users’ assets. But he still intends to sue DCG, Silbert and Genesis unless Silbert makes a “fair offer” to Gemini’s creditors.

We have been preparing to take direct legal action against Barry, DCG and others who share responsibility for the fraud that has caused harm to the 340,000+ Earn users and others duped by Genesis and its accomplices.

However, in its voluntary petition for Chapter 11 bankruptcy protection in the Southern District of New York court, Genesis Global Capital disputed some of Gemini’s claims. Genesis pointed out the $900 million loan is the net proceed from the foreclosure of certain assets, and disputes whether the foreclosure satisfied applicable law.”

See Also: Genesis Claims $5.1B in Liabilities in First-Day Bankruptcy Filing
See Also: Digital Currency Group Owes Subsidiary Genesis Global Over $1.65B
See Also: First Hearing in Genesis Bankruptcy Case Set For Monday

“A bankruptcy court judge in Delaware has given New York law firm Sullivan & Cromwell the green light to continue representing FTX during its bankruptcy proceedings. The decision, issued on Friday morning by Judge John T. Dorsey, comes despite recent controversy about the white-shoe law firm having potential conflicts of interest.

Late Thursday evening, former FTX attorney Daniel Friedberg – who served as the now-defunct exchange’s chief regulatory officer – filed an unorthodox declaration that contained numerous bombshell allegations of wrongdoing in Sullivan & Cromwell’s previous work with FTX. Disgraced former CEO Sam Bankman-Fried has also questioned Sullivan & Cromwell’s role in the bankruptcy process, making dubious claims in a recent Substack post.

Judge Dorsey, however, was not moved by the mounting concerns over Sullivan & Cromwell’s appointment as debtor’s counsel. He previously dismissed the senators’ letter as “inappropriate” and, on Friday, described Friedberg’s declaration as ‘full of hearsay, innuendo, speculation and rumors. There’s no evidence of any actual conflict here.’

Bromley also attempted to characterize Friedberg – who he described as a member of FTX’s “inner circle” – as a shady character (before his role at FTX, Friedberg was allegedly tied to a massive poker cheating scandal). Bromley described Friedberg’s declaration as nothing more than an “incendiary device” thrown into the bankruptcy process.

If you’re part of the inner circle at FTX – and that would include Mr. Friedberg – then you have concern about the exercise that’s going on … [T[he individuals who were up and running and making the decisions that have brought this company to its knees are rightly concerned that the information that is being provided to authorities could lead back to their doorstep. So if you’re Mr. Bankman-Fried or, frankly, Mr. Friedberg, there’s a concern about what’s going on and what could happen to them.”

See Also: Crypto Lender Genesis Is FTX’s Largest Unsecured Creditor With $226M in Claims
See Also: U.S. Lays Claim to $700 Million of Assets Linked to Bankman-Fried, FTX

Bitcoiners are cringing at the fact that users of the rival Bitcoin SV (BSV) blockchain can now freeze and confiscate other users’ coins, thanks to the Australian computer scientist Craig Wright’s “blacklist manager.”

The tool allows users to freeze and confiscate BSV coins as long as they provide legal documents proving rightful ownership. This type of transaction is called a “confiscation transaction” and the end result is that miners ‘will receive legal documents ordering the reassignment of misappropriated or lost assets and execute a transaction that transfers ownership.’ Many see this as an affront to the ethos of decentralization and censorship resistance.

It cannot be coincidental that CSW [Craig Steven Wright] claims that billions were stolen from him in the nonsensical pineapple hack, and that he is the only individual in the world trying to get a court to ‘return’ those assets while BSV [is] the only chain in the world implementing confiscation transactions. It is so against the spirit of Bitcoin.”

Bitcoin TA