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Genesis Rumours, Estonians Crypto Scam and Crypto Losses

Steve Miley trader
Updated 22 Nov 2022

Two Estonians have been arrested on charges of running a cryptocurrency scam of $575 million, whilst the digital-asset brokerage, Genesis Global Trading is facing bankruptcy rumours again, in the wake of the FTX contagion. Cryptocurrency markets are significantly lower again today with Bitcoin hitting a multi-year low.

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Estonians arrested in Crypto Fraud

Two 37-year-olds Estonians, Sergei Potapenko and Ivan Turogin, have been arrested after they allegedly got individuals to invest in Polybius, a fake virtual bank and a cryptocurrency mining service called HashFlare. The FBI, and US authorities, alongside Estonian police investigated the case and are seeking to extradite the pair to the USA.  In a statement from the US Department of Justice (DoJ) the duo are accused of conspiracy to commit money laundering and wire fraud, which are punishable by up to 20 years in prison.

Genesis Bankruptcy Rumours

Crypto industry giant, Genesis Trading, has warned that it may be facing bankruptcy. The digital-asset brokerage suspended withdrawals from it lending unit in the aftermath of the FTX collapse and is struggling to raise cash. It has warned investors that if it is unable to so, it may need to file for bankruptcy, according to a Bloomberg report.

Despite the rumoured bankruptcy and lack of funding thus far, the company said it has no plans to file for bankruptcy, stating: “We have no plans to file bankruptcy imminently,” a representative for Genesis told Decrypt. “Our goal is to resolve the current situation consensually without the need for any bankruptcy filing. Genesis continues to have constructive conversations with creditors.”

Cryptocurrencies Plunge, Bitcoin at Multi-Year Low

Source: IG.com

The foreminded crypto industry woes are just adding to the negativity and contagion in the wake of the collapse of the crypto giant, FTX. The broad cryptocurrency market fell again this week, having suffered significant losses at the weekend, with Bitcoin pushing to a new multi-year low, just through the earlier November low.

Steve has 29 years of financial market experience including 3 years at Credit Suisse and 15 years at Merril Lynch. Steve is the Academic Dean for The London School of Wealth Management and has won many awards from Technical Analyst Magazine.