Genesis files for bankruptcy + other stories for the week 

Temitope Akintade
Crypto lender Genesis files for bankruptcy

Despite recent decent pumps and rallies in the crypto market, the space might end the week on a sour note. Crypto lender Genesis Global has finally filed for Chapter 11 bankruptcy protection. 

This makes Genesis the latest victim of the series of bankruptcies caused by the collapse of the crypto exchange FTX. Recall that since that collapse; Genesis has been facing massive withdrawals and liquidity issues. the crypto lender had $175 million stuck on FTX as it collapsed and filed for bankruptcy in November 2022. 

We can only hope that the FTX contagion stops soon. But for now, we keep our heads above the waters. 

Here are the crypto stories from around the world this week

Tanzania is taking its time on CBDC

Tanzania’s central bank says it is still considering the introduction of a central bank digital currency (CBDC). However, it will take a “phased, cautious and risk-based approach” after identifying several challenges that could impact its implementation.

According to a release from The Bank of Tanzania, since its 2021 announcement about a possible CBDC rollout, the East African country formed a multidisciplinary technical team to explore the risks and benefits of CBDCs. The central bank noted that at least four countries (Denmark, Japan, Ecuador and Finland) have publicly cancelled CBDC adoption plans.

Also, another six have moved away from digital currencies due to structural and technological challenges in the implementation phase.

Read also:

East African Community set to decide details for the launch of Regional Central Bank

The bank said some of these challenges were high implementation costs, the dominance of cash, inefficient payment systems, and the risk of disrupting the existing ecosystem.

Tanzania CBDC

At the moment, the bank has not given a clear timeline for when it will decide on CBDCs in Tanzania but says it will “continue to monitor, research and collaborate with stakeholders, including other central banks, in the efforts to arrive at a suitable and appropriate use and technology for issuance of Tanzanian shillings in digital form.”

Cannabis producer adopts blockchain 

A California-based cannabis nursery has turned to blockchain and smart contracts to verify the authenticity of its medicinal plants. The cannabis nursery – Mendocino Clone Company was named in a partnership announcement from the EMTRI project and tech firm Global Compliance Applications last weekend. 

The move allows the nursery to “document the beginning stages of a cannabis plant’s journey to becoming a premium product for consumers based on the gram weight it flowers,” it stated.

Additionally, licensed cultivators who purchase Mendocino clones will get access to EMTRI token (EMT) rewards and better rates for participating in the blockchain project.

NFT God falls victim to malware 

Crypto and NFT-influencer NFT God has reportedly lost all of his digital assets, described as a “life-changing amount,” after falling victim to a hack over the weekend. 

According to the pseudo-anonymous influencer, he lost the NFTs after accidentally downloading malicious software, which was found through a Google Ads search result. 

NFT God posted a series of tweets describing how his assets came under attack, which included his crypto wallet, which came under attack, along with multiple online accounts. 

“Last night, my entire digital livelihood was violated. Every account connected to me, both personally and professionally, was hacked and used to hurt others. Less importantly, I lost a life-changing amount of my net worth.”

Genesis files for bankruptcy 

Crypto lender Genesis Global has become the latest firm to throw in the towel following the collapse of FTX, filing for Chapter 11 bankruptcy protection in New York. According to a Friday morning filing, the firm has estimated liabilities of $1 billion to $10 billion and assets in the same range. 

The press release says Genesis had been engaged in discussions with its advisors “to its creditors and corporate parent Digital Currency Group (DCG) to evaluate the most effective path to preserve assets and move the business forward.”

“Genesis has now commenced a court-supervised restructuring process to further advance these discussions.”

The company’s Chapter 11 plan sees it contemplating a “dual track process” pursuing a “sale, capital raise, and/or an equitization transaction” that would enable the business “to emerge under new ownership.”

GENESIS

The restructuring process will be led by an “independent special committee” of the company’s board of directors. Genesis says the process is aimed at providing “an optimal outcome for Genesis clients and Gemini Earn users.”

Binance tightens NFT listings 

According to a Thursday announcement from Binance, the cryptocurrency exchange has tightened its rules for NFT listings. 

Related post:

Bitzlato accused of laundering $700 million, Binance named as counterparty

As of February 2, 2023, all NFTs listed on Binance before October 2, 2022, and have an average daily trading volume lower than $1,000 between November 1, 2022, and January 31, 2023, will be delisted. In addition, after January 21, 2023, NFT artists can only mint up to five digital collectibles per day. 

In addition to the revised rules, Binance said it would “periodically review” NFT listings that do not “meet its standards” and recommend them for delisting.

“Users can report NFTs or collections that may be in violation of Binance NFT minting rules and terms of service. Our due diligence team will actively review reports of fraud or rule violations and take the appropriate actions.”

All digital collectibles not meeting the aforementioned two requirements will be automatically delisted by Feb. 02, 2023. The delisted assets will still appear in users’ wallets afterwards. 

That is all from us this week, see you same time next week! 


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