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A Genesis bankruptcy warning weighs in on the cryptocurrency markets

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(Bloomberg) — Cryptocurrency brokerage Genesis is warning of the risk of bankruptcy amid contagion from the rapid collapse of Sam Bankman-Fried’s FTX empire.

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Tampa Bay Buccaneers quarterback Tom Brady and Golden State Warriors’ Steve Curry are among the celebrities investigating possible securities law violations tied to their FTX promotions.

The downfall of Bankman-Fried’s businesses, including Alameda Research’s trading desk, is contributing to a reduction in liquidity in the cryptocurrency markets.

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Concerns about Genesis and other faltering cryptocurrencies, such as BlockFi Inc. , worry investors. Bitcoin selling paused on Tuesday, but the token remained near the lowest level since November 2020.

Key stories and developments:

  • Genesis Crypto has been said to warn of bankruptcy without fresh funds

  • The Bitcoin chip is paused waiting for the next Domino’s fall after FTX

  • US prosecutors opened the FTX investigation months before it collapsed

  • Tom Brady, Steve Curry drawing scan Texas on FTX jacks

(Time references are New York unless otherwise noted.)

FTX Group bankruptcy filing shows cash balance of $1.24 billion (1:30 p.m. HK)

The FTX Group bankruptcy filing showed that the cryptocurrency exchange and a number of its affiliates had a combined cash balance of $1.24 billion.

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According to the filing, the latest tally as of November 20 “identifies cash balances that are significantly higher than what debtors were in a position to prove as of Wednesday, November 16.”

Bahamas agrees to let Delaware judge handle part of FTX Meltdown (8am HKST)

Bahamas court officials have dropped their opposition to moving one piece of the FTX restructuring case to a US court in Delaware, according to a court filing.

Liquidators appointed in the Bahamas for an FTX subsidiary have agreed to move a case they filed in New York to Delaware, where more than 100 units are under federal judge oversight, FTX attorneys said in papers filed in US Bankruptcy Court in Wilmington, Delaware. .

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FalconX Announces It Will Resume Using Silvergate Payments Network (7:40 AM Hong Kong Time)

Institutional cryptocurrency platform FalconX said it will resume allowing customers to use Silvergate Capital Corp.’s payments system. to transfer cash after being suspended last week.

FalconX said Monday in a note to clients that uncertainty about cryptocurrency market conditions in the wake of the FTX collapse and outage affecting Silvergate’s “wireless payment network,” prompted the suspension. San Francisco-based FalconX said the concerns have since receded.

Tom Brady, Steve Curry drawing Texas’ audition on FTX Jacks (7:15am HKT)

A Texas regulator is examining the payments celebrities receive to endorse FTX US, along with disclosures made and how easily they can be accessed by retail investors.

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Notable people being investigated include Tampa Bay Buccaneers’ Tom Brady and Golden State Warriors’ Steve Curry.

Bitcoin Holds Its Lowest Level Since November 2020 (7:10 AM Hong Kong Time)

Cryptocurrency markets continue to be pressured by concern about the spillover from the FTX crisis. Bitcoin fluctuated on Tuesday, trading below $16,000 at its lowest level since November 2020. A measure of the top 100 digital assets has fallen more than 70% over the past year.

Crypto Firm Genesis Warns of Bankruptcy (6am HKST)

Digital asset brokerage Genesis is struggling to raise new funds for its lending unit, and is warning potential investors that it may need to file for bankruptcy if its efforts fail, according to people familiar with the matter.

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People said Genesis, which faced a liquidity crisis in the wake of the bankruptcy of crypto exchange FTX this month, has spent the past several days seeking at least $1 billion in fresh capital. This included talks about a potential investment from cryptocurrency exchange Binance, they said, but funding has yet to materialize.

US prosecutors opened investigation into FTX months before it collapsed (4:14 p.m.)

Long before Sam Bankman Fried’s crypto empire collapsed this month, it was already on the radar of federal prosecutors in Manhattan.

The US Attorney’s Office for the Southern District of New York, led by Damien Williams, spent several months working on a thorough examination of cryptocurrency platforms with US and foreign weapons and began poking at FTX’s massive exchanges, according to people familiar with the investigation.

Fidelity Should Reconsider Bitcoin Exposure in 401(k): Senators (3:43 p.m.)

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Democratic senators Dick Durbin, Elizabeth Warren and Tina Smith have urged Fidelity Investments to reconsider allowing 401(k) plan sponsors to offer exposure to bitcoin.

“The recent collapse of FTX, a cryptocurrency exchange, has demonstrated that the digital asset industry has serious problems,” the senators said in a letter to Fidelity CEO Abigail Johnson.

Tiger Global’s Now Worthless Bet on FTX Was Payne’s Due Diligence (3:03 p.m.)

Bain & Co. Among the advisory firms that helped conduct the due diligence of Tiger Global Management’s investment in the now-defunct cryptocurrency exchange is FTX, according to people familiar with the matter.

People said Tiger Global, which pays Bain more than $100 million a year to research private companies, has now reduced its $38 million stake in FTX to zero. One person said that Sam Bankman-Fried’s stewardship of a vast network of entities linked to FTX was one of the risks highlighted during the due diligence process, but that the money manager still believed it was a sound investment at the time.

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Kathy Wood Goes on Coinbase on a Buying Spree as Wall Street Roils (12:21 p.m.)

Wall Street’s waning condemnation of Coinbase Global Inc. Much to deter Cathy Wood. Instead, it was acquiring shares of the struggling cryptocurrency exchange in the wake of the FTX crash.

Wood’s Ark Investment Management funds have purchased more than 1.3 million shares of Coinbase since the beginning of November, worth about $56 million based on Monday’s trading price, according to data compiled by Bloomberg. The shopping spree, which began as FTX’s demise began, boosted Ark’s total holdings by about 19% to about 8.4 million shares. This equates to about 4.7% of the total outstanding shares of Coinbase.

Seeing the Alameda Gap Help Dry Up Liquidity Across the Crypto Market (11:26 AM)

The elimination of Sam Bankman-Fried’s crypto empire, including crown jewel exchange FTX and sister trading desk Alameda Research, is helping to reduce liquidity across the cryptocurrency market.

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The decline has been dubbed the “Alameda Gap” by blockchain data firm Kaiko, named after the trading group at the center of the storm closing its books. Kaiko noted in a November 17 newsletter that dips in liquidity usually come during periods of volatility as trading houses pull bids and asks from their order books to better regulate risk.

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Kane Biotech GAAP EPS – $0.01, revenue of $0.57 million

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Kane Biotech GAAP EPS – $0.01, revenue of $0.57 million

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Johnson and Truss join the Tory rebellion against onshore wind farms

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Boris Johnson and Liz Truss, Britain’s last two prime ministers, have weighed in behind a Tory insurrection designed to end a de facto ban on new onshore wind farms – causing a new headache for the current prime minister, Rishi Sunak.

Simon Clarke, Secretary of Compromise under Truss’s short-lived presidency in the fall, wrote an amendment to the government “Settlement and renewal invoiceThat would terminate the current mass on the ground wind turbine.

Clark argues that wind power is not only one of the cheapest forms of energy but it will also improve Britain’s resilience during global energy crisis Driven by Russia’s invasion of Ukraine.

He released his amendment only 24 hours after Snak was forced to do so Critical vote on reform planning postponed In the face of a growing rebellion by more than 50 of his deputies who are cautious about developing new fields.

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The new involvement of both Johnson and Truss in the wind power uprising suggests that Sunak’s predecessors are unlikely to give him an easy chance as prime minister. Sunak played a large role in Johnson’s ouster in the early summer when he was one of the first in a series of ministers Resignation in protest In various scandals swept the then Prime Minister.

David Cameron introduced the crackdown on new onshore wind farms originally when he was prime minister in 2015 to mollify a growing number of Tories opposed to them.

After moving to No. 10, Johnson gave Partial light signal for onshore wind By including the technology in the government’s system of subsidies for low-carbon electricity, called “contracts for difference” auctions.

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Even then, however, Johnson did not fix Cameron’s tightening of the planning regime, which made it virtually impossible to build wind farms in England anywhere there was a single interceptor.

Truss announced as the prime minister announced that she had scrapped onerous planning restrictions in September in a bid to spur the rapid expansion of onshore wind farms. The government is keen to increase domestic low-carbon energy sources at a time when gas prices are skyrocketing around the world.

But after replacing it in Downing Street, Snack has put the technology back on hold, despite its broader ambition to dramatically increase renewable power generation.

The Clark amendment would force Michael Gove, who replaced him as settlement secretary in the Sunak government, to allow onshore wind farm applications by revising government guidance known as the National Planning Policy Framework.

In an effort to reassure other MPs, the Clark Amendment would ensure projects could only go ahead if they had councils’ support by preventing developers from making an appeal to the National Planning Inspectorate when their schemes had been rejected.

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Labor is expected to support Clarke’s amendment but also put out its own, more wordy, text.

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These are the Black Friday deals to avoid while shopping for the holidays

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Getting into the spirit of Black Friday — the busy shopping day after Thanksgiving — is easy. You’re in a spending mindset — and retailers are counting on that to lure you in with sky-high prices and hopefully buy a lot while you’re there. However, sometimes, the deals aren’t as good as they seem.

Certain categories of merchandise are best avoided on Black Friday. And the team in DealNews He has advice on What you should avoid (and for how long). Here are things that are better to bypass.

TVs – well, some of them

There are great deals on some branded TVs this Black Friday. There are also special offers on other brands. These are the things that are best avoided. Televisions are an expensive enough product and it’s wise to get a major brand, as the quality is generally better. Missed the best deals today? Wait until late January/early February, when they will usually sell out again at similar or better prices.

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Kids Games

If you are looking for one of the hot items of the year, definitely buy it if you see it. But if you’re shopping for random toys, Black Friday isn’t the best time to buy them, despite the sales. Chances are good that you’ll find better rates closer to Christmas.

Make-up

It’s tempting to buy cosmetics when you’re already at a big box store like Macy’s, but Black Friday deals aren’t usually that great. He says Cyber ​​Monday generally has better discounts DealNews. More stores will offer them.

holiday decorations

While there are some deals for people looking to get in the festive mood, it’s best to wait until right before Christmas — or even better, after — Christmas. This is when prices really drop and you can stock up for the 2023 holidays.

Electrical Tools

Mom or Dad may want to train, but the holidays are not peak time for savings. Prices tend to drop as Father’s Day approaches. There’s some savings at the end of the year, but if it’s a gift that can wait, consider starting shopping early next year.

furniture

Couches and other expensive pieces of furniture are not common gifts for the holidays. You’ll likely save money if you can hold off until President’s Day or Memorial Day. The occasional deal you see on Black Friday (or throughout the entire holiday season) isn’t generally going to be the best.

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Pretty much anything from a small business

Let’s be clear: we’re not saying don’t support local merchants. Just wait a day. Small Business Saturday is November 26th – this is when small business deals are most prevalent.

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