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 companys 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.