City Arrow Financial News

Founders of collapsed crypto hedge fund Three Arrows Capital Su Zhu and Kyle Davies are reportedly trying to raise money for a new cryptocurrency exchange in partnership with Coinflex cofounders Mark Lamb and Sudhu Arumugam. According to a pitch deck, they are looking to raise $25 million. 

The monumental collapse of FTX didn’t just destroy a crypto exchange and wipe out billions in customer deposits — it also exposed accounting irregularities at Barry Silbert’s empire, the Digital Currency Group, or DCG. That’s according to Bitcoin (BTC) billionaire and Gemini co-founder Cameron Winklevoss. The FTX blow-up caused Genesis Global Trading, another DCG firm, to pause new loan originations and redemptions — a decision that directly affected Winklevoss’ Gemini Earn program. The pause on withdrawals has been active for nearly two months, prompting Winklevoss to pen two open letters addressed to Silbert and DCG’s board. The second open letter, published this week, claimed that Silbert was “unfit” to run DCG and that there would be no way forward with him at the helm.

Amid an ongoing spree of layoffs globally, cryptocurrency brokerage firm Blockchain.com announced that it would slash 28 percent of its workforce, or about 110 employees, owing to the ongoing market conditions impacting the crypto economy.

The crypto space is notorious for its significant swings and ups and downs. Yet the 2022 crash seems harsher and more unpredictable than previous bear markets. Still, there are ways for investors to safeguard their crypto assets and protect them despite the turbulent times.

Kyle Davies, the co-founder of bankrupt hedge fund Three Arrows Capital (3AC), disclosed in a Twitter thread that the first meeting of 3AC creditors was held on Jan. 11. Davies invited all creditors to join the group and announced that it would meet regularly.

You can get into crypto any time you like, but can you ever leave? A fierce $900 million Bitcoin feud between the billionaire Winklevoss twins and Barry Silbert suggests the virtual currency bubble’s main legacy is a version of Hotel California, with clients desperately hoping for fresh money to pick up the tab — or a change in management that will let them check out.

Albright Capital has dropped its lawsuit against Terraform Labs and its founder Do Kwon, according to a Notice of Voluntary Dismissal filed in U.S. District Court on January 9. Before its dismissal, the lawsuit had alleged that the company had violated the Racketeer Influenced and Corrupt Organizations Act (“RICO”) by operating the stablecoin, UST, as a “Ponzi scheme.”

Cameron Winklevoss, co-founder of the cryptocurrency exchange Gemini, has penned an open letter to the board of Digital Currency Group, or DCG, saying CEO Barry Silbert was “unfit” to run the company.

The bullish breakout in crypto that started last week has seen investors beam with hope for a sustainable recovery. Bitcoin (BTC) and other cryptocurrencies struggled throughout 2022 amid internal and external uncertain events.

The cryptocurrency industry will see increased consolidation in 2023 as healthier companies acquire more crypto and blockchain companies, according to a senior executive at Ripple.

The cryptocurrency ecosystem underwent a turbulent year in 2022. Criticism inside and outside of the crypto industry was fueled following the collapse of FTX, Celsius, Three Arrows Capital and the Terra ecosystem. 

A crypto lobbying group based in Singapore has voiced its opposition to the proposal from the central bank to prohibit crypto firms from lending crypto tokens. 

Crypto lending platform Genesis Global Trading has reportedly cut 30% of its workforce in the second round of layouts in six months.

Three Arrows Capital (3AC) founders Zhu Su and Kyle Davies were subpoenaed on Twitter on Jan. 5, after the liquidators granted permission from Singapore authorities following a United States bankruptcy court order, according to information given to Cointelegraph by advisory firm Teneo.

Silvergate Capital Corp reported a sharp drop in fourth-quarter crypto-related deposits on Thursday and said it would cut its workforce by 40%, or about 200 employees, as withdrawals surged following the collapse of industry major FTX.

Derar Islim, the interim CEO of crypto brokerage Genesis Global Trading, has told clients that they need more time to resolve the financial crisis plaguing its lending business.

Continuing with 2022’s trend, there is a lack of positive excitement in the crypto market. While Bitcoin (BTC) and altcoins have remained stagnant to start 2023, there are a few reasons why volatility could spike in January. 

As liquidity issues surround the Digital Currency Group (DCG), Three Arrows Capital (3AC) founder Su Zhu made a Twitter thread containing allegations against DCG and FTX. However, the founder immediately got called out by the crypto community for blaming others and not taking accountability. 

BTC traded bullishly on January 2nd, after breaching the sideways trading range of $16,500 to $16,650. As a result, the Bitcoin price prediction remains bullish, and a break of the $16,770 resistance level may lead BTC to $16,930. Major cryptocurrencies were trading in the red early on January 2 as the global crypto market cap increased by 0.07% to $795.38 billion on the previous day. 

2022 was a watershed year for crypto venture capital, as investors poured tens of billions of dollars into blockchain-focused startups despite the overwhelmingly bearish trend in asset prices. Is the VC-dominated crypto funding model good for the industry? Only time will tell. 

Terra Luna Classic struggles to hold support above support at $0.00014, hours ahead of the New Year. The previous year – 2021, saw investors and crypto enthusiasts beam with the hope that 2022 would be laced with world-class developments and key milestones.