We entered another year but the woes surrounding the crypto market from 2022 continue. 2022 turned out to be the worst year for the crypto market as there were major bankruptcies, the price of crypto kept falling and investors lost tons of money.
The implosion of FTX and the arrest of its former CEO, Sam Bankman-Fried, the dust of it hasn’t settled yet. Major firms have been hit by the event in the first few days of 2023. The companies that showed the results of this hit are Genesis Global and Silvergate Bank.
Silvergate shares fall
On Thursday, Silvergate, a bank focused on crypto, recorded a massive fall of over 40% in its shares in just few hours. The bank published its preliminary report of the last quarter of 2022, which showed that 8 billion USD worth of crypto had been withdrawn as customers suffered the spook of FTX collapse. It has also decided to lay off its 200 employees which accounts for 40% of the workforce.
A U.S Attorney said to the court on Wednesday, that the accounts of Silvergate and Framington State Bank which does business as a moonstone bank, have been seized. They held about 143 million USD and are affiliated with FTX Digital Markets.
Also read: Justin Sun Confirms 20% Of Staff Layoff At Huobi
Genesis plans on cutting off more employees
Genesis Global which offers loans to financial institutions has also decided to layoff its 30% of its employees. Earlier in November, the firm stopped giving loans and withdrawals by customers citing the extreme market condition caused by the implosion of FTX.
Crypto exchange Gemini has a partnership with Genesis for a crypto lending product. They have been saying Genesis to find a solution before the firm is forced to file for Chapter 11 bankruptcy similar to FTX.
Huobi Confirms 20% Layoff
Since the collapse of FTX, Huobi is seeing a massive downfall in its trading volume. The news forced more investors to take out their money, which has now ultimately led to layoffs at Huobi. Earlier there had been reports about Huobi forcing its employees to accept salary in USDC/UDTC rather than fiat currency, a denial to this which could get the employees fired.
Also read: Huobi Token Falls After Reports Of Internal Conflicts Surface
Alex Mahinsky faces lawsuit
The crypto billionaire, Alex Mahinsky, founder and former CEO of Celsius Network was slapped with a new lawsuit on Wednesday by New York Attorney Generals. When Mahinsky was the CEO in 2021-2022, his company offered loans of billions of dollars to Alameda research, as per the lawsuit. It asks to stop him from running any business in New York. He is accused of fooling customers about the status of its now bankrupt company.
Sam Bankman-Fried pleaded non-guilty, last Tuesday in court. He is facing 8 financial crime charges against him by the U.S. SEC. He is accused of transferring funds from FTX to his other company Alameda Research and of looting customers.
The post Layoffs, Lawsuits, Frauds: Crypto Makes Shaky 2023 Start appeared first on CoinGape.
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