Genesis is currently in a really bad spot, halting withdrawals from their lending arm in the wake of the FTX collapse and warning of bankruptcy shortly afterwards. The company owes $900 million to customers of Gemini, and Gemini's CEO recently sent an open letter to Genesis's parent company demanding the funds be returned.
Silvergate announced that they would be cutting 40% of their staff — around 200 employees. They also announced that they would be taking a $196 million impairment charge on assets they purchased from Diem — Facebook's blockchain-based payment system once known as Libra. "Given the significant changes in the digital asset industry landscape, this charge reflects the Company’s belief that the launch of a blockchain-based payment solution by Silvergate is no longer imminent," they wrote.
Silvergate's stock plunged 41% on the news.
- "Silvergate Raced to Cover $8.1 Billion in Withdrawals During Crypto Meltdown", The Wall Street Journal
- "Silvergate Capital cutting headcount 40%, takes $196M impairment charge", Seeking Alpha
- "Silvergate Announces Select Preliminary Fourth Quarter 2022 Financial Metrics and Provides Business Update", Seeking Alpha
The lawsuit seeks to permanently bar Mashinsky from engaging in similar business in the state, and seeks disgorgement, damages, and restitution.
- "Attorney General James Sues Former CEO of Celsius Cryptocurrency Platform for Defrauding Investors", New York Attorney General
Fanatics purchased a 60% stake in Candy Digital in a $100 million Series A round in October 2021. Now, they've sold the stake to a group of investors led by Galaxy Digital for an undisclosed amount, in what Rubin wrote was "a rather straightforward and easy decision". He highlighted Fanatics' ability to "realize [when] things aren't working", he wrote in the email.
After many attempts over the span of a year to contact Paul, directly and via his manager (who CoffeeZilla did speak with), Paul has claimed that CoffeeZilla made no attempts to get his side of the story. Instead of addressing any of the many well-researched claims about the flagrant (alleged) grift that Paul has been perpetrating, he has instead reacted in typical (alleged) cryptoscammer fashion: by threatening to sue CoffeeZilla.
The thief quickly flipped all of the NFTs for around 417 ETH ($525,000). It's unclear if one of the CryptoPunks was stolen, as it was transferred to a wallet to whom CryptoNovo has previously made transfers, but that NFT too was sold for 75 ETH ($94,200).
The thief made a pretty penny, but the loss to CryptoNovo is more substantial based on how much money they spent on the NFTs. They had purchased the Bored Ape in August 2021 for 30 ETH (then around $100,000), and CryptoPunk #4608 in September 2021 for 290 ETH (then $850,000).
The attack appears to have been phishing-related.
Early last year, Coinbase was ordered by regulators to hire an outside monitor to oversee compliance. Under the settlement agreement, Coinbase will be required to continue the monitoring for at least another year as it works to improve its compliance.
- "Coinbase Reaches $100 Million Settlement With New York Regulators", The New York Times
Magic Eden acknowledged the issue in a tweet, asking users to contact their support if they had bought any of the fake NFTs. Various users on Twitter had reported buying the spoofed NFTs, paying 20–50 SOL ($266–$666) for fake NFTs that appeared as though they were a part of a verified collection that usually sold for around 165 SOL ($2,200).
Clicking in to the NFT details showed that they were a part of a different collection that was not verified, but they appeared in listings among the verified NFTs, and were in some cases quickly purchased by collectors who thought they were taking advantage of a seller's mistake in listing the NFT.
Giannaros told Axios that the company was "still operating but will be scaling back".
The sudden sale of such a large number GMX tokens (which are comparatively illiquid compared to much larger cryptocurrencies like Ethereum) caused the price to suddenly drop from ~$41.50 to ~$38 per token, though the token price recovered fairly quickly. GMX is the native token for the defi exchange of the same name.
- "Hackers steal $3.5M worth of digital assets from GMX whale", Cointelegraph