Weekly News Highlights | Gemini and DCG in Debt Dispute; Approximately $4.2 Billion in Customer Assets Ruled to Belong to Celsius

整理：润升，ChainCatcher

Important News

1. Gemini Co-founder Sends Open Letter to DCG Founder, Demanding Repayment of Over $900 Million to Earn Users

On January 3, Gemini co-founder Cameron Winklevoss sent an open letter to DCG founder Barry Silbert on behalf of over 340,000 users of its Earn product, demanding repayment of more than $900 million owed.

Previously, Gemini lent digital currency to Genesis, resulting in approximately $900 million in unrecoverable funds, leading to the suspension of its lending product, Gemini Earn. Cameron also revealed in the open letter that DCG owes Genesis approximately $1.68 billion.

Houlihan Lokey had previously proposed a plan on behalf of the creditors' committee to address the liquidity issues of Genesis and DCG and provide a pathway for asset recovery. The plan is based on information received so far from Genesis, DCG, and their respective advisors. (Source link)

2. Data: 2022 Crypto Industry Financing Reached $26.77 Billion, with 1,528 Financing Events

On January 3, according to crypto data platform Rootdata, the total disclosed financing amount in the crypto industry for 2022 reached $26.77 billion, with 1,528 financing events, representing a 4.5% decrease in amount and a 28% increase in the number of events compared to 2021. There were 57 merger and acquisition events that year, with 10 disclosing acquisition amounts totaling $1.64 billion.

The top 5 sectors by financing amount were Infrastructure ($7.565 billion), CeFi ($5.68 billion), NFT ($3.456 billion), DeFi ($1.651 billion), and Gaming ($1.626 billion).

The top 5 projects by single financing amount were Terra ($1 billion), Fireblocks ($550 million), Polygon ($450 million), ConsenSys ($450 million), and Yuga Labs ($450 million). Additionally, Animoca Brands raised a total of $544 million across three financing rounds.

The top 5 investment institutions by number of investments were Coinbase Ventures (119 times), Animoca Brands (118 times), Shima Capital (88 times), GSR (76 times), and Spartan Group (63 times). (Source link)

3. Reports Claim "Li Lin Founded New Crypto Exchange" is a Platform Under New Huo Technology, Formerly Huobi Hong Kong

On January 4, it was reported that "Li Lin founded the new crypto exchange New Huo Hong Kong." Upon reviewing relevant public information, it was found that "New Huo Hong Kong" was formerly Huobi Hong Kong and is an indirect wholly-owned subsidiary of New Huo Technology Holdings Limited. Li Lin is the chairman and controlling shareholder of New Huo Technology Holdings Limited. According to the official website of New Huo Technology, Du Jun and Zhang Li serve as CEO and CFO of the company, respectively.

In response, Du Jun stated in the community that New Huo Technology will have several reliable external products this year, but this exchange platform will definitely not be included. New Huo Technology responded that the New Huo HK exchange website is a trial operation site during the licensing application process and has not officially launched operations. (Source link)

4. SBF Pleads Not Guilty to Federal Fraud Charges in New York Court

On January 4, according to CNBC, SBF appeared in court in New York on January 3 and pleaded not guilty to eight charges related to the collapse of FTX in the New York federal court. The U.S. District Court has set the trial date for October 2, 2023.

Previously, the U.S. Attorney's Office for the Southern District of New York charged SBF with a total of eight counts, including fraud, money laundering, and other financial crimes. The prosecution stated that SBF also violated campaign finance laws by making donations to New York candidates and committees in another person's name. (Source link)

5. Crypto Payment Provider Wyre Allegedly Closing Down

On January 4, according to Axios, crypto payment provider Wyre is allegedly closing down. A former employee cited an email from Wyre CEO Ioannis Giannaros stating that the company would liquidate and terminate services as soon as possible this month. Another former employee indicated that the company did not provide any severance pay. However, Giannaros responded to Axios that the company is still operating and plans to downsize soon.

ChainCatcher previously reported that in December 2022, Wyre, the exchange service provider for hardware wallet Ledger, was suspected of "unjustly" freezing user funds, with users reporting that funds exchanged on the Wyre platform went missing without explanation. (Source link)

6. U.S. Bankruptcy Judge Rules $4.2 Billion in Celsius Interest Accounts Belongs to Celsius, Not Customers

On January 5, according to The Wall Street Journal, U.S. Bankruptcy Judge Martin Glenn ruled that approximately $4.2 billion in cryptocurrency held in interest accounts at the crypto lending platform Celsius Network belongs to Celsius, not to thousands of customers. The judge stated that each company’s rights to its customers' digital assets are clearly defined in its terms of use, and the contract between Celsius and its users clearly establishes the company's ownership, allowing Celsius to use the $4.2 billion in cryptocurrency at its discretion.

This decision will directly affect Celsius's ability to sell $18 million in stablecoins to cover costs for remaining longer in bankruptcy protection. Celsius executives previously testified in bankruptcy court that the company's funds would run out in March, after which it would need to raise funds to cover the costs of maintaining bankruptcy protection. (Source link)

7. Magic Eden to Refund All Users Deceived into Purchasing Fake NFTs

On January 5, NFT marketplace Magic Eden announced that it has determined the impact of unverified NFT sales incidents has been contained to 25 series, and the issues have been resolved.

Magic Eden promised to refund all users who were deceived into purchasing fake NFTs on its website due to a vulnerability, and it is currently confirming whether any other NFTs were affected after the last day.

Previously, NFT collector "Trollidan 'TYR'" posted on social media that they purchased a "fake" NFT on the ABC (abracadabra) series NFT homepage on Magic Eden, with multiple NFT collectors responding that they had similar experiences. (Source link)

8. Animoca Brands Halves Its Web3 Investment Fundraising Target to $1 Billion

On January 5, Animoca Brands CEO Yat Siu stated in an interview with Bloomberg that the company is negotiating with potential investors to raise $1 billion for its Web3 and metaverse investment fund.

ChainCatcher previously reported that Yat Siu stated in November 2022 that Animoca Brands planned to launch a fund of up to $2 billion for investing in metaverse businesses, describing the planned fund as a "good entry point for Web3 businesses," focusing on mid to late-stage startups. (Source link)

9. DCG Shuts Down Its Wealth Management Division

On January 6, according to The Information, DCG's Genesis Global Trading has just announced further layoffs and the closure of a wealth management division called HQ Digital.

It is reported that HQ manages over $3.5 billion in assets. A DCG spokesperson did not respond to requests for comment. (Source link)

10. Huobi Plans to Lay Off About 20%, Appoints New Head of Human Resources

On January 6, according to Reuters, Huobi committee member Justin Sun stated that the cryptocurrency exchange Huobi plans to lay off about 20% of its staff and indicated that "structural adjustments" have not yet begun, expecting to complete them in the first quarter. Additionally, according to BlockBeats, an internal letter from Huobi indicated that due to the need for organizational upgrades and business development, the head of the group's human resources department will be concurrently held by Ryan Wang, the head of internal audit, and Mike Hu will no longer serve in that role.

Previously, informed sources indicated at the end of 2022 that Huobi would continue to lay off staff in 2023, with the scale of layoffs expected to reach 40%. Currently, Huobi has approximately 1,600 employees. Meanwhile, some Huobi employees will re-sign contracts, recalculate their years of service, and cancel the issuance of five insurances and one fund subsidies. (Source link)

11. Sources: U.S. Authorities Investigating Internal Fund Transfers at DCG

On January 7, sources revealed that U.S. authorities are investigating internal financial transactions at Barry Silbert's crypto company. Federal prosecutors in Brooklyn are reviewing transfers between Digital Currency Group and its crypto lending service subsidiary. They are also investigating how investors were informed about these transactions.

One source said prosecutors have begun requesting interviews and documents. Another source indicated that the U.S. Securities and Exchange Commission (SEC) is also conducting an investigation. The investigation is still in its early stages, and neither Barry Silbert, DCG, nor any of its subsidiaries have been accused of wrongdoing. (Bloomberg)

12. First Ethereum Core Developer Meeting of 2023: Public Testnet for Shanghai Upgrade to Launch in Early February, Mainnet to Launch in March

On January 8, Ethereum developers held the first All Core Developers (ACD) meeting of 2023, with the current goal of launching a public testnet for the Shanghai upgrade in early February and tentatively launching the Shanghai upgrade mainnet at some point in March 2023.

Additionally, developers agreed to remove code changes related to the implementation of EOF from the Shanghai upgrade and also agreed to reject any other Ethereum Improvement Proposals (EIPs) from the Shanghai upgrade that would replace the EOF EIP, primarily to ensure that the timeline for staking ETH withdrawals would not be delayed. As the only major code change of the Shanghai upgrade, withdrawals of staked ETH are being tested on a developer-focused test network. Furthermore, developers agreed to focus the Cancun upgrade after the Shanghai upgrade on EIP-4844. (Source link)

Important Financing/Venture Capital News

1. Post-Quantum Privacy Protection Public Chain Abelian Completes $3 Million Financing, Led by Draper Dragon

On January 3, the post-quantum privacy protection public chain project Abelian announced it has completed $3 million in financing, led by Draper Dragon, with other investors including high-net-worth individuals and family offices. This fundraising will be used for project technology development, reserves, marketing, and supporting Abelian ecosystem partners.

It is reported that Abelian is the world's first post-quantum (quantum-resistant) privacy protection L1 blockchain, using NIST standardized lattice-based cryptographic algorithms and proving its security through cryptography. It aims to achieve Digital Gold 2.0, creating a quantum-resistant and privacy-protecting crypto ecosystem, and building L2 networks and post-quantum zero-knowledge bridges to support EVM-equivalent blockchain networks, empowering Web3 and DeFi applications. (Source link)

2. Blockchain Securitized Carbon Credit Trading Platform AirCarbon Exchange Completes $15 Million Series B Financing, Led by TRIREC

On January 4, according to Ledger Insights, the blockchain securitized carbon credit trading platform AirCarbon Exchange (ACX) completed $15 million in Series B financing through convertible bonds, led by TRIREC, with Banpu Public Company and PJSC participating. The total funds raised by AirCarbon Exchange have reached $25 million, including some investments from the European Energy Exchange (EEX) under Deutsche Börse, which established a strategic partnership with them.

Previously, in December 2022, AirCarbon Exchange stated that it was seeking $50 million in Series B financing. (Source link)

3. Italian Cryptocurrency Exchange Young Platform Completes €16 Million Financing and Obtains French Regulatory License

On January 4, the Italian cryptocurrency trading platform Young Platform announced that it has received approval from the French Financial Markets Authority (Autorité des Marchés Financier) to operate as a digital asset service provider in the country.

Additionally, Young Platform disclosed that it completed a €16 million financing round about six months ago, led by Azimut. (Source link)

4. Multi-Signature Wallet Solution MSafe Completes $5 Million Seed Round Financing, Led by Jump Crypto

On January 5, Aptos ecosystem multi-signature wallet solution MSafe announced the completion of a $5 million seed round financing, led by Jump Crypto, with participation from Circle Ventures, Coinbase Ventures, Superscrypt (founded by Temasek), Redpoint Ventures, SV Angel, Shima Capital, and Spartan Group.

It is reported that MSafe has currently integrated 12 major projects in the Aptos ecosystem, including Dex (LiquiditySwap), NFT marketplace (Souffl3), cross-chain bridge (Wormhole), decentralized finance protocol Aris market, and stablecoin provider Thala labs. (Source link)