Genesis bankruptcy, DCG suspends dividends, European Union considers DAOs.
Your daily digest for the most popular blockchain, crypto and web3 news.
Cryptocurrency
Genesis is planning to file for bankruptcy
Cryptocurrency lending firm Genesis Global Capital, a subsidiary of crypto conglomerate Digital Currency Group, is reportedly preparing to file for bankruptcy as early as this week.
According to a Jan. 18 Bloomberg report, Genesis previously said it was considering a bankruptcy filing if it were unable to raise cash amid a liquidity crunch — a situation similar to that preceding crypto exchange FTX’s Chapter 11 filing in November. Citing people with knowledge of the situation, Bloomberg reported Genesis could file for bankruptcy as soon as this week.
Digital Currency Group is suspending dividends until further notice.
The crypto conglomerate that owns CoinDesk, will be suspending dividends amid ongoing liquidity concerns and a public spat with crypto exchange Gemini and other creditors of DCG subsidiary Genesis. "In response to the current market environment, DCG has been focused on strengthening our balance sheet by reducing operating expenses and preserving liquidity," DCG said in a letter to shareholders sent on Tuesday.
Bitzlato and its founder face enforcement actions from US authorities
In a Jan. 18 announcement, U.S. Deputy Attorney General Lisa Monaco said authorities had taken enforcement actions against Bizlato in coordination with France, seizing Bitzlato’s website and labeling the business as a “primary money laundering concern” connected to Russian illicit finance. According to Monaco, the Department of Justice worked with the Treasury Department and French law enforcement to take action against Bitzlato for allegedly “conducting a money transmitting business that transported and transmitted illicit funds and that failed to meet U.S. regulatory safeguards."
Web3
Deal Box launches $125M blockchain and Web3 venture fund.
According to a Jan. 18 press release, United States-based capital markets advisory and token offering platform Deal Box has launched a new $125 million venture capital arm dedicated to blockchain and Web3 startups. The fund, dubbed Deal Box Ventures, will invest in companies in the emerging growth, real estate, fintech, funtech and social impact fields.
The European Union should consider legislation to recognize DAOs.
Finland’s communications minister said on a World Economic Forum panel in Davos, Switzerland. Timo Harakka, the speaker, later told CoinDesk that "thinking on a multinational level” is needed to avoid “harmful regulatory competition” among the EU trading bloc’s 27 members.