FTX, an insolvent crypto exchange, is seeking to reclaim nearly $4 billion from Genesis Global Capital, which is also bankrupt, according to a court document filed on Wednesday. The nearly $8 billion in loans made to Alameda Research, an FTX-affiliated entity, were largely repaid to Genesis, a subsidiary of Digital Currency Group (parent company) in the weeks leading up to FTX’s bankruptcy in November. Unfortunately, Genesis filed for bankruptcy itself in January.
Moody’s has recently stated that digitalization is having a huge influence on the future of money; however, they believe that the traditional banking system of money maintained by central banks will still remain the most prominent. This is because trust is more important than efficiency, according to the conclusions made after their survey of different forms of money that are either emerging or potentially emerging.
Shares of PacWest Bancorp (PACW) plummeted by more than 50% in after-hours trading on Wednesday, after a Bloomberg report indicated the U.S.-based lender is considering multiple strategic options. The banking crisis appears to be far from over. At press time, Bitcoin (BTC) had risen more than 2%, reaching a price of $28,900 in response to the news.
On Wednesday, Nate Chastain, the ex-head of product at OpenSea – an NFT platform – was found guilty of money laundering and wire fraud in a federal court in New York, as reported by Reuters. In September 2021, Chastain was compelled to step down from his role due to the emergence of allegations of insider trading on social media. It was alleged that Chastain had abused his authority – which entailed selecting NFTs to be showcased on OpenSea’s homepage – to make illegal gains.