Genesis Settles with SEC, Jihan Wu Returns as Bitdeer CEO, and Other Crypto Industry Developments

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

Genesis Settles SEC Claims Over Joint Product with Gemini

Genesis, a lending platform within the DCG group of companies, has settled a dispute with the SEC regarding the offering of unregistered securities through the joint product Earn with the Gemini exchange.

The platform has agreed to pay a $21 million fine, which will occur after the full repayment of debts to creditors.

In May 2023, DCG defaulted on a $630 million payment as part of compensation to Gemini Earn users.

In July, the Winklevoss brothers’ exchange sued the company and its founder Barry Silbert, calling him the “architect and inspirer of fraud.” Later, Digital Currency Group requested the dismissal of the lawsuit.

In August, DCG promised to reimburse Genesis creditors between 70% and 90% of funds.

The creditors deemed the offer “unsatisfactory” and threatened to block any final bankruptcy deal with such terms.

A month later, DCG proposed a new restructuring plan for the subsidiary.

In January 2024, creditors challenged the holding’s repayment of debts to Genesis.

Previously, the organization agreed to pay $8 million as part of a settlement with the New York regulator.

Former UK Finance Minister Joins Coinbase as Advisor

George Osborne, former UK finance minister, has joined the bitcoin exchange Coinbase as an advisor. He is currently a partner at the investment bank Robey Warshaw.

Having led Her Majesty’s Treasury from 2010 to 2016, Osborne interacted with the platform at a fintech event in London and at the World Economic Forum in Davos, Switzerland.

Osborne will join a board formed to develop Coinbase’s global strategy, which also includes former US Secretary of Defense Mark Esper and former Pennsylvania Senator Patrick Toomey.

On January 29, Coinbase announced it would start charging a fee of 0.1% for converting USDC to fiat for amounts exceeding $75 million. For transactions from $150 million to $500 million, the rate will be 0.15%, and over $500 million — 0.2%.

Prime clients with assets over $500 million in Coinbase or an average balance of $100 million over a calendar month can expect to maintain previous conditions.

Fee exemptions also apply to participants in the first and second tiers of the Coinbase Exchange Liquidity program.

In January, Coinbase called bitcoin “mainstream” following the launch of an ETF. The platform acts as custodian for nine of the 11 approved exchange-traded funds.

Reports Reveal Binance Allows Major Clients to Store Crypto in External Institutions

Bitcoin exchange Binance has allowed major traders to store their digital assets in independent banks like Sygnum or FlowBank, according to the Financial Times.

The platform accommodated clients who expressed concerns about security after US authorities fined the organization $4.3 billion, according to the publication.

Previously, platform clients could store their assets either on the exchange or through the custodian Ceffu. The latter claims to be “the sole institutional partner for asset storage for Binance exchange.” US regulators described Ceffu as a “mysterious organization linked to Changpeng Zhao’s company,” according to FT.

On January 31, the organization confirmed rumors of discussions about selling a controlling stake in the South Korean exchange Gopax. The company became a shareholder of the platform in February 2023.

In November 2022, Gopax suspended principal and interest withdrawals on its DeFi GoFi platform due to issues at its parent company Stream. The latter was one of the 10 largest creditors of Genesis.

Jihan Wu to Replace Linghui Kong as CEO of Bitdeer

Jihan Wu, founder and chairman of the board of directors of mining services provider Bitdeer, will replace Linghui Kong as CEO. The latter will transition to the role of chief operating officer.

Bitdeer announced the appointment of Mr. Jihan Wu, the Company’s Founder and Chairman of its Board of Directors, as Chief Executive Officer of the Company, effective on March 1, 2024. The Company’s current Chief Executive Officer Mr. Linghui Kong will transition to the role of…

— Wu Blockchain (@WuBlockchain) January 29, 2024

According to Wu, the leadership change is aimed at allowing him and Kong to “focus on [their] respective areas of expertise and fully leverage emerging strategic growth opportunities.” Kong has served as CEO since January 2021.

In April 2023, Bitdeer went public, listing on Nasdaq through a reverse merger with SPAC Blue Safari Group Acquisition Corp.

Bitfinex Securities Becomes First Registered Service Provider in El Salvador

The authorities of El Salvador have registered the platform for trading tokenized stocks and bonds, Bitfinex Securities, as the first licensed crypto service provider.

The organization has begun accepting client applications and has created a list of potential tokenized financial assets expected to enter the market in the first half of this year.

Following the successful launch of spot bitcoin ETFs, Bitfinex anticipates high demand for such regulated digital asset investment instruments.

In 2021, Bitfinex launched the regulated platform Bitfinex Securities in Kazakhstan, based at the Astana International Financial Centre.

Also on ForkLog:

• JPMorgan pointed out risks to the industry due to Tether’s dominance.
• Exchange OPNX, founded by 3AC, announced its closure.
• Polygon Labs will lay off 60 employees.
• OKX recorded a fivefold increase in traffic from Russia by the end of 2023.
• Victims of Palestinian terrorists filed a lawsuit against Binance.
• OKX announced support for Ordinals analogs on four networks.
• Binance launched a marketplace for bitcoin “inscriptions” and their analogs.
• Tether’s net profit reached $2.9 billion in the fourth quarter.
• Celsius Network will pay $3 billion as part of its reorganization.

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