The Scenius Sync (Issue #32)

Genesis Files for Bankruptcy, Bitzlato Founder Arrested in Crypto Crackdown & Robinhood Enters the (Decentralized, Non-Custodial) Wallet Wars

Scenius: The intelligence and the intuition of a whole cultural scene. The communal form of the concept of genius.

Welcome to The Scenius Sync.

Our mission with this concise publication is twofold:

1. Share the essential stories driving the crypto industry and markets.

2. Highlight innovative applications and mainstream adoption of crypto and blockchain technology.

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Essential News 🗞

1. Digital Currency Group's Genesis Global Files for Bankruptcy Protection

   • Genesis Global Holdco filed for bankruptcy protection late Thursday in U.S. Bankruptcy Court for the Southern District of New York. The news comes after the firm failed in a bid to raise cash for its troubled lending unit and cut 30% of staff in a fresh round of layoffs in early January.

   • To read the DCG Statement on Genesis Capital’s Chapter 11 Bankruptcy Filing click here: https://dcgupdate.com/

2. US Charges Crypto Exchange Bitzlato With Laundering $700M

   • Bitzlato, a Hong Kong-based platform, has been effectively shut down, and founder Anatoly Legkodymov was taken into U.S. custody, moves that will stop Bitzlato from catering to criminals tied to Russia, Deputy Attorney General Lisa Monaco said at the press conference. She outlined the coordinated enforcement actions, which also included the Federal Bureau of Investigation, French authorities and the U.S. Treasury Department, saying they disrupted "a busy corner of this criminal ecosystem."

3. FTX Token FTT Pumps 32% After New CEO Says Exchange Could Be Revived

   • The token issued by the bankrupt FTX crypto exchange jumped 32% in a day after its new CEO, John J. Ray III, reiterated that he’s mulling over the idea of restarting the struggling exchange formerly helmed by Sam Bankman-Fried.

     Ray said Thursday that he is still trying to uncover and retrieve FTX assets and has tasked a group with exploring the possibility of restarting the international arm of the exchange, the Wall Street Journal reported.

4. Nexo Pays $45 Million to Settle SEC and State Charges for Failing to Register Lending Product

   • Nexo agreed to pay $45 million to federal and state agencies after being charged by the Securities and Exchange Commission for failing to register the offer and sale of its retail crypto asset lending product, called the Earn Interest Product. The lender will pay $22.5 million in penalties and agreed to cease the sale of the Earn Interest Product to U.S. investors, the agency said in a statement. Nexo also agreed to pay an additional $22.5 million to settle similar charges made by state regulatory authorities. 

5. FBI Confirms North Korea Behind $100 Million Harmony Hack

   • The North Korea-linked cyber group had long been suspected of being behind the attack, but their involvement hadn’t been confirmed by authorities until now. According to a Jan. 23 statement, the FBI noted that “through our investigation, we were able to confirm that the Lazarus Group and APT38, cyber actors associated with the DPRK, are responsible for the theft of $100 million of virtual currency from Harmony’s Horizon bridge.” The Harmony Bridge hack in 2022 was the result of security holes in Harmony’s Horizon Ethereum bridge which allowed the cyber attackers to swipe a number of assets stored in the bridge via 11 transactions.

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Innovation & Adoption 💡📈

1. Robinhood Rolls Out Its MetaMask Wallet Competitor to 1 Million Users

   • The company launched the Robinhood Wallet, a smartphone app that allows users to swap and transfer crypto, and view owned NFTs and crypto. It’s currently being slowly rolled out to over 1 million waitlisted users via an access code. The Robinhood Wallet uses Polygon to offer swaps without network fees. It has also added support for Ethereum.

2. HashKey Capital Closes Fund III with US$500 Million in Commitments

   • The global asset manager, specializing in crypto and blockchain, announced the final closing of its third fund, HashKey FinTech Investment Fund III with a total commitment of US$500 million. The Fund reported having received strong support from institutional investors including sovereign wealth funds, corporations, and family offices.  

3. Developers Finalize First 'Shadow Fork' for Ethereum's Shanghai Upgrade

   • Developers successfully launched a "shadow fork" of the Shanghai upgrade to test it on a version of the main Ethereum network. There were a few minor technical issues, but developers were able to fix the issues, and now all nodes are in agreement.

4. National Australia Bank to Launch Stablecoin on Ethereum and Algorand

   • National Australia Bank (NAB) will become the second of the country’s major financial institutions to launch a stablecoin, a top executive told the Australian Financial Review (AFR). The coin, dubbed AUDN, will launch on the Ethereum and Algorand blockchains later this year. NAB’s stablecoin will allow for carbon credit trading; other functions could include cross-border payments and repurchase agreements.

5. Steven Soderbergh Presents Blockchain Award to NFT-Funded Film ‘Calladita’

   • Established by renowned director Steven Soderbergh and the Decentralized Pictures platform, the award provides $300,000 in finishing funds for noteworthy English-language films and shorts, for up to three filmmakers. Unlike traditional films, the team behind Calladita financed the film using NFTs. This practice picked up steam in 2021 and 2022, with other filmmakers, including iconic directors Spike Lee and Kevin Smith, turning to digital collectibles to finance films and drive engagement.