Developments in Genesis and Celsius Cases, Coinbase’s EU Plans, and Other Crypto Industry Events

We have compiled the most important news from the crypto industry over the past two weeks.

DCG Creditors Contest Debt Repayment to Genesis

Digital Currency Group (DCG) has met all current obligations, paying creditors over $1 billion, including about $700 million to Genesis. The latter contested this.

“Digital Currency Group maintains a significant debt to creditors in USD and BTC,” the court statement reads.

According to the document, Genesis and others claim that DCG still owes an unspecified amount in bitcoins, as well as $26 million in interest and late payment fees. This is stipulated in the debt repayment agreement and general credit agreements, the statement says.

DCG transferred $189 million in addition to “waiving certain ETHE shares and illiquid ETCG shares […], presumably towards settling bitcoin obligations.”

Under the partial repayment agreement in September, the holding is allowed to settle its claims in USD and bitcoin, rather than other assets.

Genesis cannot determine which portion of DCG’s bitcoin obligations remains unpaid until it sells ETHE and ETCG and buys bitcoin with the proceeds, the costs of which will be passed on to Digital Currency Group, the statement says.

In November 2023, DCG entered into a new $620 million debt repayment agreement with its bankrupt subsidiary Genesis Global Holdco LCC to settle a lawsuit. 

Coinbase Plans Acquisitions for EU Crypto Derivatives Expansion

Bitcoin exchange Coinbase intends to launch trading of regulated crypto derivatives in the EU. To implement this initiative, the company will acquire an unnamed company in Cyprus with the appropriate MIFID II license.

The deal awaits approval from local regulators.

Currently, the acquired platform offers spot trading of digital assets.

“Adding the license to our international portfolio will support the high interest in our derivatives offerings,” the press release states.

On January 11, Coinbase partnered with African platform Yellow Card for expansion into 20 countries across the continent.

Crypto is here to stay — helping drive a more open, accessible, and global financial system.

Coinbase products will now be available in Africa, starting with 20 countries across the continent. Learn more about our partnership with @yellowcard_app: https://t.co/IsZueHmbOU pic.twitter.com/Y0oZOwwdxr

— Coinbase ?️? (@coinbase) January 11, 2024

The collaboration will provide more than half of Africa’s population access to purchases in USD through the Coinbase Wallet app, as well as zero-fee stablecoin transfers via email and messengers like WhatsApp, iMessage, and Telegram.

Celsius Demands Major Creditors Return Pre-Bankruptcy Funds

The bankrupt lending platform Celsius demanded that major creditors ($100,000 and above) return 27.5% of the amounts withdrawn three months before filing for bankruptcy.

The firm expects the return of funds by January 31, 2024. According to the reorganization plan, if this condition is met, they will be entitled to future payments. Otherwise, they may potentially face lawsuits.

In November, Celsius presented a revised reorganization plan, which involves transforming into a cryptocurrency mining business. The proposal marked a shift from an earlier proposal, which also included a staking program.

The new initiative emerged after the U.S. Securities and Exchange Commission (SEC) provided feedback “on certain aspects of the plan.” According to CoinDesk, the proposal required clarifications regarding the platform’s assets.

Upbit and BitGo Secure Licenses in Singapore

Cryptocurrency exchange Upbit and digital asset custodian BitGo received licenses from the Monetary Authority of Singapore (MAS).

The former obtained a full license as a major payment institution. This will allow the platform to provide services related to regulated digital payment tokens. Upbit received in-principle approval from MAS in October 2023.

Registered in Singapore, Upbit APAC also operates cryptocurrency trading platforms in Thailand and Indonesia.

BitGo received in-principle approval to operate as a major payment institution. Currently, the company offers wallet and digital asset custody solutions in Singapore.

Upon receiving a full license, the company plans to expand its offerings to also allow clients to buy and sell cryptocurrency using its class III cold storage solution.

Also on ForkLog:

• Circle filed for an IPO in the US.
• Ripple to buy back its shares at a valuation of $11.3 billion.
• The Bitfinity network for scaling Bitcoin was valued at $130 million.
• NEAR Foundation to cut 40% of its staff.
• Wintermute’s OTC trading volume in 2023 surged by 400%.

Weekend Reading Suggestions

On the evening of January 10, the SEC announced the approval of 11 applications for spot Bitcoin ETFs.

ForkLog surveyed experts on the impact of the event on the cryptocurrency market, as well as the prospects for trading the product by clients of American institutions and in the Asia-Pacific region, where Hong Kong and Singapore may take the lead from the US.