Also today, Amateur rapper Heather Morgan has a new job — despite the fact she's awaiting trial on suspicion of attempting to launder Bitcoin worth billions.
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Bitcoin's dizzying rally comes to a halt 📉
Bitcoin's incredible winning streak has come to an end, with the world's biggest cryptocurrency falling from fresh 90-day highs of $21,564. At the time of writing on Thursday, BTC has slumped to $20,695 — a sign that the digital asset has become overbought after a stunning rally to start the year. But the crypto markets weren't alone, with global stocks also taking a tumble amid renewed fears that a recession is just around the corner. On Wednesday, the S&P 500 shed 1.6% after gloomy economic data from the U.S. revealed that retail sales fell more than expected in December. Meanwhile, a number of economists have warned that the Federal Reserve is likely to increase interest rates a few more times this year.
Genesis could file for bankruptcy this week… 🚨
Genesis could be on the brink of filing for bankruptcy as early as this week, according to Bloomberg. The crypto lender, which is ultimately owned by Digital Currency Group, has been left in a perilous financial position after suffering exposure to a number of earlier bankruptcies. Not only was Genesis badly burned by the demise of Three Arrows Capital, but it has now been frozen out of $175 million after FTX collapsed too. It now owes $900 million to 340,000 Gemini Earn customers, with little sign of an agreement being reached. Withdrawals have been suspended at Genesis since November — a move that often serves as an early warning sign that bankruptcy proceedings are imminent.
…as CoinDesk starts looking for a new owner 💰
With DCG in crisis, other parts of the company could be up for sale too. One of them is the crypto news outlet CoinDesk, which played an instrumental role in exposing Sam Bankman-Fried. According to the Wall Street Journal, the media company has now lined up investment bankers to explore options. CoinDesk generated $50 million in revenue last year — mostly from online advertising and events — and apparently, interested buyers have already made offers of over $200 million. This would be quite a return on investment for DCG, which had initially snapped up the media company for a mere $500,000 in 2016 — before Bitcoin dramatically surged to $20,000 and burst into public consciousness.
Russian founder of Bitzlato arrested in the U.S. 😱
A crypto exchange has been charged with laundering more than $700 million — prompting its Russian founder to be arrested in Miami. According to the U.S. Justice Department, Bitzlato requires minimal identification from users — and these lax Know Your Customer procedures made it "a haven for criminal proceeds." Senior executive Anatoly Legkodymov is now facing charges, amid allegations he enabled bad actors to profit from ransomware and drug trafficking. In a not-so-subtle dig at SBF, Deputy Attorney General Lisa Monaco said: "Whether you break our laws from China or Europe — or abuse our financial system from a tropical island — you can expect to answer for your crimes inside a United States courtroom."
Heather Morgan lands new job at a tech firm 👀
Amateur rapper Heather Morgan has a new job — despite the fact she's awaiting trial on suspicion of attempting to launder Bitcoin worth billions. According to Bloomberg News, she's been hired by an unnamed tech company that doesn't mind the fact she's under 24-hour house arrest. Modifications have been made to the conditions of this house arrest, meaning she can work at the firm's New York offices three days a week. Morgan will now serve as a "growth marketing and business development specialist," and the name of her new employer is being kept secret. Last summer, she was given permission to seek legitimate employment and earn over $10,000 a month. The fact it's taken this long suggests she hasn't been inundated with job offers.