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Crypto Outlook at The World Economic Forum<\/p>\n<\/div>\n
Cryptocurrency firm Genesis Global Capital is planning to file for bankruptcy as early as this week, Bloomberg reported today.<\/p>\n
The bankruptcy filing has been expected since the November fall of the FTX cryptocurrency exchange.<\/p>\n
Meanwhile, the US Justice Department has announced that Anatoly Legkodymov, the Russian operator of the China-based crypto exchange Bitzlato, has been arrested. Bitzlato was a crypto exchange that allegedly worked with the darknet blackmarket Hydra Market, which dealt in illicit trade and served as a safe haven for ransomware attackers, according to the DOJ.<\/p>\n
The US Justice Department issued a vague statement on Wednesday that it would \u201cannounce a major, international cryptocurrency enforcement action\u201d, and noted that the US Treasury Department would also be making its own statement.<\/p>\n
The announcement comes at a time when former FTX crypto exchange CEO Sam Bankman-Fried is facing charges of wire fraud, securities fraud, and conspiracy. The DOJ stressed that criminals using the crypto space for scams and other criminal activity should be aware the agency will use \u201cevery tool\u201d to crack down on their activities.<\/p>\n
Mr Bankman-Fried\u2019s company \u2013 long considered one of the biggest crypto exchanges alongside Binance \u2013 declared bankruptcy after allegedly using, and losing, customers\u2019 funds as investment capital. <\/p>\n