The world of blockchain is constantly evolving and having a major impact on the payment space, with cryptocurrencies, NFTs and the metaverse all helping to revolutionise the space.
Payment Expert’s Blockchain Bulletin provides analysis of some of the week’s most significant blockchain tech news stories and feature reports that continue to shape the sector.
FTX impact continues as Genesis volatility escalates
Cryptocurrency lender Genesis Global filed for Chapter 11 bankruptcy after falling victim to the aftermath of FTX’s collapse.
The troubled firm lost “hundreds of millions” when crypto hedge fund Three Arrows Capital filed their own bankruptcy last summer, which began a cycle of unravelling troubles for Genesis, most notably halting withdrawals for its Gemini partnered program, Earn.
Derar Islim, Interim CEO of Genesis stated on the developments: “While we have made significant progress refining our business plans to remedy liquidity issues caused by the recent extraordinary challenges in our industry, including the default of Three Arrows Capital and the bankruptcy of FTX, an in-court restructuring presents the most effective avenue through which to preserve assets and create the best possible outcome for all Genesis stakeholders.”
Cameron Winklevoss claims DCG need to ‘come to their senses’
Cameron Winklevoss, Co-Founder of Gemini, has threatened legal action against the Digital Currency Group (DCG) and its President Barry Silbert unless they ‘come to their senses’.
This is a result of Genesis’ filing for bankruptcy and Winkelvoss took to Twitter to express that he will take “direct legal action” against Silbert and the DCG if they do not offer a sum for Earn investors not being able to receive their funds after they were frozen out of their accounts last November.
Winklevoss and his twin brother Tyler, were reported to have sent $900m of Gemini customer funds to Genesis, with the duo emphasising their belief that Silbert is acting in ‘bad faith’, with what they described as ‘stall tactics’.
He also added that Genesis filing for bankruptcy was a ‘crucial step’ in order to recover funds for Earn customers.
Borussia Dortmund steps up Web3 expansion with Coinbase
Bundesliga football club Borussia Dortmund has expanded on its partnership with Coinbase which will enhance its pre-existing crypto-education sessions for the clubs’ employees.
A collaboration that dates back to July 2022, Coinbase and Dortmund offered three dozen colleagues from a multitude of differing departments to take part in these education sessions before the Christmas period, with the Bundesliga club also looking to advance on its existing Web3 projects.
The deal marks the strengthening of the ties between football and Web3, as Dortmund eye elevated fan engagement in the space through a hist of partnerships, including their linking with Coinbase. The two organisations also underlined that at the heart of the expanded partnership is education, a key theme to many of the partnerships we have seen within football and the blockchain.
ECB set for exploration of a Digital Euro app
As the European Central Bank (ECB) continues its progress report into the potential launch of a digital euro by the end of the year, one of its representatives discussed the chance of launching an app to support the Central Bank Digital Currency.
Fabio Panetta revealed that a possible app to support the digital euro would be available to all EU populations and be supported via contactless payments.
In terms of the speck was the app will engage with transaction, Panetta detailed that it may likely offer contactless payments and QR codes, as it focuses on a seamless payment experience. The ECB Board Member went further and discussed that people will be able to pay with the digital euro on mobile phones, physical cards or tech devices such as smartwatches.”
SEC hits Nexo with $45M fine
The US Securities and Exchange Commission’s latest crypto penalty was handed to Nexo, who received a $45 million fine.
The platform was charged over failing to register the offer and sale of its retail crypto asset lending product which occurred back in June 2020, when it offered investors an unregistered earn interest product.
Nexo is no longer offering the EIP in question and has announced that it will make a complete withdrawal of its services from North America.
In a comprehensive statement released to the public, SEC Chair Gary Gensler said: “We charged Nexo with failing to register its retail crypto lending product before offering it to the public, bypassing essential disclosure requirements designed to protect investors.
“Compliance with our time-tested public policies isn’t a choice. Where crypto companies do not comply, we will continue to follow the facts and the law to hold them accountable.
“In this case, among other actions, Nexo is ceasing its unregistered lending product as to all US investors.”
Transparency and trust key for OKX as firm reveals Proof of Reserves
With exchanges facing scrutiny over their proof of reserves holdings in the wake of the FTX collapse, OKX has revealed it holds $7.5bn in Bitcoin, Ethereum, and USDT.
OKX CMO Haider Rafique said: “Security, transparency and trust are core tenets of the OKX business process and customer service philosophy. We’ve already taken a leadership position by publishing our PoR monthly.
“As industry standards for PoR continue to take shape, we expect that our reserve asset quality will be one of many key differentiating factors for OKX in the market.”
Describing which assets are considered ‘clean’ when it comes to PoR, OKX stated that this is based on ‘’when a third party analysis determines they do not include an exchange’s platform token, and are solely made up of high market cap ‘traditional’ crypto assets such as BTC, ETH and USDT’.