Cowed crypto gang feel winter freeze at WEF

DAVOS, Switzerland: In the snow and ice on the main drag in Davos, the impact of the crypto winter is plain for WEF attendees to see.

Last May, the dressed-up shop fronts that line both sides of the Promenade street running through the Swiss ski resort were dominated by crypto firms, rolling in bitcoin.

Now there are just a handful and the executives who have made it to Davos have swapped their hoodies for blazers, despite sub-zero temperatures outside.

Some of those from the digital industry which have set up shop on the fringes of the World Economic Forum (WEF) annual meeting were quick to distance themselves from cryptocurrencies. “I hope there’s an increased focus on utility value and practical applications of the technology, and less focus on retail investors chasing meme coins,” Jeremy Allaire, CEO of USDC stablecoin issuer Circle, said. “There was a lot of nonsense,” Allaire said.

Executives in Davos said they are now all about blockchain technology, proper controls and regulation, and the promise of disruption that it holds for financial services and beyond.

Cryptocurrency broker Genesis expected to file for bankruptcy

Meanwhile, popular cryptocurrency broker Genesis is expected to file for bankruptcy within days, insiders have revealed, the media reported.

It would make the firm the latest crypto casualty following the spectacular downfall of Sam Bankman-Fried’s FTX, where the company held some of its funds, it was reported.

According to people familiar with the matter, Genesis is currently in the final stage of its Chapter 11 paperwork as it works toward a deal with creditors. The company, which is owned by venture capital firm Digital Currency Group, had been considering filing for bankruptcy for some time, as it reportedly owes creditors more than $3billion.

Among those owed money is Gemini, owned by Cameron and Tyler Winklevoss, which reportedly saw more than $900million of its customers’ funds evaporate from the exchange after Bankman-Fried’s own Chapter 11 filing in November.

The statuesque twins - perhaps best known for their protracted legal battle with fellow billionaire Mark Zuckerberg made famous in The Social Network - were among many to record losses when FTX fell. Cameron and his brother’s exchange used Genesis as its main lending partner, leaving the brothers - and millions of their customers - in the red as a result.

Lenders like Genesis, founded by crypto magnate Barry Silbert, suffered steep losses from loans it supplied FTX’s now-defunct trading firm Alameda Research and its hedge fund backer Three Arrows Capital