FTX tries to claw back $4bn from Genesis, former OpenSea executive convicted of fraud

FTX tries to claw back $4bn from Genesis

Bankrupt exchange FTX will try to squeeze almost $4 billion from also-bankrupt Genesis, according to a Wednesday court filing.

Genesis repaid much of the nearly $8 billion in loans it was owed by FTX sister firm Alameda Research back in 2022.

FTX’s lawyers seek avoidance actions to acquire the funds to pay off customers and creditors caught in the $11 billion collapse. The hearing to discuss FTX’s new claim takes place May 25.

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Former OpenSea executive convicted of money laundering

A New York court convicted a former head of product at NFT marketplace OpenSea on wire fraud and money laundering charges on Wednesday.

Nate Chastain resigned from OpenSea in September 2021 after allegations emerged on social media that he was conducting insider trading.

Chastain was responsible for selecting featured projects on the site, and was accused of manipulating his position to profit from NFT projects on the platform. Chastain faces up to 40 years in prision.

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Federal raises rates to highest since 2007, stays mum on further hikes

The price of Bitcoin fell slightly after the US Federal Reserve hiked rates 25 basis points to 5.25% on Wednesday, marking the highest that rates have been since 2007.

The world’s biggest cryptocurrency fell by about 1% after the central bank announced its decision, down to just under $28,500.

The central bank did not comment on further rate hikes, though Federal Reserve Chair Jerome Powell stated future actions would depend on economic conditions.

The hike follows a wave of bank collapses beginning in March, the most recent being First Republic which collapsed last Thursday.

Coinbase shutters Coinbase Borrow programme

Coinbase will close its Borrow programme, but sources familiar with the matter say the decision had nothing to do with the US exchange’s legal woes.

On Wednesday, the company informed users via email that May 10 would be the last day loans would be available.

Coinbase Borrow allowed users to take out fiat loans of up to $1 million against their bitcoin holdings.

Reports about the closure comes as Coinbase is publicly duking it out with the Securities Exchange Commission, which slammed the exchange with a Wells notice in March.

However, sources familiar with the matter told CoinDesk that the decision was unrelated to the regulatory battle.

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SEC removes ‘digital asset’ from lingo in hedge fund rule

The SEC has removed the term “digital asset” from the vernacular of a recent hedge fund rule, as the agency says it needs to “consider” the term as it relates to disclosure regulations.

The regulator included the wording in its initial 2022 proposal, and Chair Gary Gensler has referenced digital assets and their various types consistently in a year full of enforcement actions against crypto firms.

Conversely, crypto lobby groups such as the Securities Industry and Financial Markets Association have stated that the wording is too broad, and may cover non-security digital asset types such as commodities.

More web3 news from around the web…

WallStreetBets-linked token plummets in price after mod appears to dump tokens The Block

RFK Jr. raises crypto taxes, regulation as issues in opening days of 2024 presidential race — CoinDesk

Media companies renew fight to get names of FTX creditors — Decrypt

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