Weekly News Highlights | Cryptocurrency Market Cap Reaches $1 Trillion Again; FTX Recovers Over $5 Billion in Assets

整理：润升，ChainCatcher

Important News

1. Huobi Korea will operate independently, its chairman will acquire a majority stake from Li Lin

On January 9, news from South Korean media News1 reported that Huobi Korea will sever its ties with Huobi Global and operate independently. It was reported that Huobi Korea will negotiate on equity issues, and currently, more than half of Huobi Korea's shares are owned by Huobi Global founder Li Lin. Huobi Korea's chairman Jo Guk-Bong will acquire a majority stake from Li Lin. (News1)

2. Sources: DCG knew FTX was insolvent in May last year and demanded repayment of $2.5 billion

On January 9, news emerged that Twitter user Andrew cited sources stating, "DCG/Genesis knew that FTX and Alameda were insolvent in late May 2022, and Barry and DCG began to actively pressure Alameda to repay the $2.5 billion loan owed to Genesis." (Source Link)

3. FTX's multiple business units have attracted potential acquisition interest from around 117 companies globally

On January 9, a legal document revealed that as of Sunday, approximately 117 parties, including various global financial and strategic counterparties, have expressed potential acquisition interest in one or more of FTX's business units. So far, FTX has signed 59 non-disclosure agreements. LedgerX, a derivatives division of FTX US, is one of the few companies that remain solvent and is leading in 56 letters of intent.

FTX stated that, given the Department of Justice and securities and commodities regulators' charges against these former executives, it will not sell any claims related to Sam Bankman-Fried, Gary Wang, Nishad Singh, Caroline Ellison, or their families. The deadline for submitting preliminary bids for these four companies will be between January 18 and February 1. However, in another document submitted on Sunday, a committee representing FTX creditors stated that there would be no rush to sell. (Source Link)

4. CryptoQuant: Binance's revenue in 2022 may reach $12 billion, OKX has achieved 4x revenue growth in the past two years

On January 10, crypto data analytics tool CryptoQuant tweeted that Binance's revenue has grown tenfold over the past two years, with 2022 revenue potentially reaching $12 billion. Since the second quarter of 2021, Huobi's quarterly revenue has dropped by 98%. OKX's revenue has quadrupled over the past two years, with the platform destroying or repurchasing approximately $948 million worth of OKB in 2022. (Source Link)

5. Coinbase announces further details of restructuring plan: laying off 950 employees, total costs between $149 million and $163 million

On January 10, cryptocurrency exchange Coinbase (COIN.O) announced further details of its restructuring plan, which is expected to be largely completed by the second quarter of 2023, with total restructuring costs estimated between $149 million and $163 million, and a layoff of 950 employees. (Source Link)

6. DCG CEO's letter to shareholders: borrowing $1.1 billion from Genesis, promissory note due in 2032

On January 11, CoinDesk reported that DCG CEO Barry Silbert disclosed debt issues with its subsidiary in a recent letter to shareholders: DCG has a $1.1 billion promissory note due in 2032 and owes its subsidiary $447.5 million in cash, plus 4,550 bitcoins (worth about $78 million), borrowed at interest rates of 10% to 12% between January and May 2022.

Silbert explained that each wholly-owned subsidiary of DCG has its own bank accounts, securities accounts, and crypto accounts, maintaining separate books and records without issues of fund commingling. These loans were made on a fair trading basis and priced at current market rates. Regarding DCG's role in Genesis's restructuring efforts, Silbert stated, "Due to DCG's outstanding loans and promissory notes to Genesis, DCG executives (including Genesis board members) have no decision-making power in this matter."

Earlier yesterday, Gemini co-founder Cameron Winklevoss publicly called for the DCG board to remove CEO Silbert. (Source Link)

7. Lookonchain: Notable institutions such as Paradigm, Alameda Research, and 3AC participated in LDO trading

On January 11, Lookonchain analyzed on-chain trading data and found that Paradigm, Jump Trading, Alameda Research, 3AC, Dragonfly, Robot Ventures, and DeFiance Capital participated in LDO trading in May 2021. Among them:

• Paradigm bought 70 million LDO at a cost of $0.76, currently still holding 70 million;
• Jump Trading bought about 5.6 million at a cost of $0.85, currently still holding about 4.3 million;
• Alameda Research bought about 5.4 million at a cost of $0.74, currently still holding about 1.65 million;
• 3AC bought 3.5 million LDO at a cost of $0.7, currently still holding 3.1 million;
• Dragonfly Capital bought about 1.87 million LDO at a cost of $0.75, currently holding nearly 25 million;
• Robot Ventures bought about 940,000 LDO at a cost of $0.7, currently holding about 940,000;
• DeFiance Capital bought 2.08 million LDO at a cost of $0.7, currently holding a total of 710,000. (Source Link)

8. Bloomberg: Binance admits to reserve management flaws in BUSD during 2020 and 2021, sometimes under-collateralized

On January 11, Bloomberg reported, citing data from blockchain analytics firm ChainArgos, that BUSD was frequently under-collateralized during 2020 and 2021, sometimes resulting in over $1 billion in missing collateral. Binance admitted to management flaws in BUSD reserves during 2020 and 2021, sometimes being under-collateralized and not fully backed.

A Binance spokesperson stated, "The process of maintaining full backing involves many teams and is not always flawless, which may have led to operational delays in the past," emphasizing that BUSD is currently fully backed and has no impact on Paxos. (Source Link)

9. Bankruptcy attorney: FTX has recovered over $5 billion in cash and liquid assets

On January 12, Coindesk reported that a bankruptcy attorney stated in a recent hearing that FTX has recovered over $5 billion in various types of assets (including cash, cryptocurrencies, and liquid investment securities), excluding an additional $425 million in cryptocurrencies held by the Bahamas Securities Commission. (Source Link)

10. Changpeng Zhao: Binance will continue to scale in 2023, with a staff growth target of 15% to 30%

On January 12, The Block reported that Binance CEO Changpeng Zhao stated at a conference in St. Moritz, Switzerland, that Binance will continue to scale in 2023, with a staff growth target between 15% and 30%, increasing the exchange's team from 3,000 in 2022 to 8,000. Plans for the coming year include improving technology and enhancing the efficiency of cryptocurrency exchange operators, as well as investing in customer support.

Additionally, Zhao predicted that within 10 to 15 years, there will be larger decentralized exchanges than Binance. (Source Link)

11. Hong Kong SFC CEO: Standards for retail investors in virtual asset trading will be established, limited to highly liquid assets

On January 12, the South China Morning Post reported that the new CEO of the Hong Kong Securities and Futures Commission, Julia Leung, stated at the Asian Financial Forum that after the new licensing rules for virtual asset service providers take effect in June, virtual asset trading will be limited to highly liquid products aimed at retail investors. The SFC will release a consultation document this quarter detailing the products and conditions for retail investors to trade virtual assets, as well as the licensing requirements for virtual asset trading platforms.

When asked whether the regulator could include cryptocurrencies like Bitcoin or Ethereum in the initial list of virtual assets, Leung stated that only "highly liquid" assets would be allowed for retail trading. (Source Link)

12. Azuki officially launches community-built virtual city "Hilumia"

On January 13, Azuki announced on its official Twitter that it has officially launched the community-built virtual city "Hilumia." Azuki NFT holders or community participants can now participate in exploration, which includes high-quality toy store Slowpoke's ToyHaven, design platform Ember Square, skateboard enthusiast community Golden SkatePark, and opinion "collection box" Garden Express.

It is reported that Hilumia has not yet released a formal roadmap, but the community believes that the project may be an immersive version of the Azuki Mindmap. (Source Link)

13. Sequoia Capital reduces management fees for its $600 million crypto fund

On January 13, Sequoia Capital partner Alfred Lin stated that to cope with the slowing investment environment, Sequoia Capital has reduced management fees for two new venture funds, including a $950 million ecosystem fund and a $600 million crypto fund focused on investing in cryptocurrency companies and token projects (to date, 10% of the crypto fund's capital has been deployed).

Sequoia's move may be related to the plummeting valuations of tech companies and the FTX collapse, but Alfred Lin emphasized that while Sequoia's investment pace has slowed, it will continue to push forward. Sequoia Capital remains a long-term optimist in the crypto industry and several other fields. (Source Link)

14. BSV Claims Limited files a class action lawsuit against four exchanges involving 243,000 people, claiming £9.9 billion

On January 14, Bloomberg reported that BSV Claims Limited has filed a class action lawsuit against four cryptocurrency exchanges, including Binance and Kraken, representing UK residents who held BSV from April 2019 to July 2022, involving 234,000 people.

The lawsuit accuses the four exchanges of delisting BSV in 2019, causing investor losses, and claims £9.9 billion (approximately $12.11 billion). The court is expected to rule in the coming months on whether the case can proceed, and according to a memorandum released by law firm Crowell & Moring LLP, if the court decides that the claim can continue, it will mark the first time a UK court hears anti-competitive allegations involving digital assets.

It is reported that BSV Claims Limited was established in May 2022 to initiate a class action lawsuit against the exchanges for delisting BSV, and its directors include former Lord Chancellor and Justice Secretary Robert Buckland and the first chairman of the UK Competition and Markets Authority David Currie. (Source Link)

15. Total cryptocurrency market cap returns above $1 trillion, 24-hour increase of 8.5%

On January 14, according to CoinGecko data, as Bitcoin's price rose above $20,000, the total cryptocurrency market cap returned above $1 trillion, currently reaching $1.02 trillion, with a 24-hour increase of 8.5%.

Additionally, the total trading volume of cryptocurrencies in the past 24 hours was $82.8 billion, with Bitcoin's dominance at 39.4% and Ethereum's dominance at 18%. (Source Link)

16. El Salvador's Congress passes digital securities law, plans to issue Bitcoin bonds to raise $1 billion

On January 15, El Salvador's Congress announced the passage of a digital securities law that allows the country to raise funds through the world's first sovereign blockchain bond. The bill was passed with 62 votes in favor and 16 against and will be sent to President Nayib Bukele for signing. The law creates a legal framework to support Bukele's sale of Bitcoin bonds, aimed at raising $500 million to build a tax-free coastal town named Bitcoin City, which will utilize geothermal energy from nearby volcanoes to mine digital currency.

According to the government's proposal, the other $500 million will be specifically used to purchase Bitcoin, with any appreciation of the digital currency ultimately shared with bondholders. Under the government's initial proposal, these tokenized bonds will be denominated in US dollars, with an annual interest rate of 6.5% for a term of 10 years. The plan has faced criticism from credit rating agencies and the International Monetary Fund.

Previously, the El Salvador government promised to sell Bitcoin bonds in the first quarter of 2021, but the issuance was delayed multiple times due to the drop in Bitcoin prices. According to Bukele's tweet, by June 2021, the El Salvador government had purchased 2,381 bitcoins. On November 16 of the same year, he stated that the government would buy one Bitcoin every day. (Bloomberg)

Important Financing/Venture Capital News

1. Web3 automated code auditing platform MetaTrust completes approximately $10 million seed round financing, with participation from GGV and others

On January 9, according to cointime, MetaTrust co-founder Liu Yang stated in an interview that the Web3 automated code auditing platform MetaTrust has completed approximately $10 million in seed round financing, with participation from several venture capital firms including M23, Redpoint Ventures, ABCDE Capital, Longhash, Hash Global, SNZ, Yunqi Capital, GGV, Fellows Fund, and Aimtop Ventures.

MetaTrust plans to launch four products in the first quarter of 2023 and will seek the next round of financing after achieving revenue and profit targets. It is reported that MetaTrust provides corresponding support for each stage of the development cycle, including project planning security assessments in the pre-development stage, security package management tools and our code scanning tool MetaScan in the development stage, project contract security audit services in the post-development stage, and security monitoring in the post-release stage. (cointime)

2. Metaverse infrastructure company Worlds completes $21 million Series A financing, led by Moneta Ventures

On January 10, metaverse infrastructure company Worlds completed $21 million in Series A financing, led by Moneta Ventures, with participation from Align Capital, Green Park & Golf Ventures, Chevron Technology Ventures, Piva Capital, PerotJain, and Capital Factory.

It is reported that Worlds, previously known as Hypergiant Sensory Sciences, went public in August 2021, with clients including Chevron and Petronas. The company is currently integrating IoT sensors, personnel, and processes into digital twins to help industrial enterprises monitor their supply and logistics processes. The new funds will be used to continue developing the company's AI platform, bringing AI-based automation into the underlying operations of large industrial companies. (Source Link)

3. Crypto social wallet The Easy Company completes $14.2 million seed round financing, with participation from Upside and others

On January 10, TechCrunch reported that crypto social wallet The Easy Company completed $14.2 million in seed round financing, with participation from Lobby Capital, Relay Ventures, 6th Man Ventures, Tapestry, Upside, and Scribble, as well as angel investors from traditional social media and web3. The funds will be used to continue building social products while expanding blockchain support.

It is reported that Easy aims to combine user-selected profiles with engaging social features so that people can search, navigate, and explore the Web3 world on their own. Easy's design has cross-chain functionality and is currently compatible with Ethereum and Polygon NFTs, with plans to support more blockchains in the future. (Source Link)

4. Consensus Capital Market Protocol Alkimiya completes $7.2 million financing, led by 1kx and others

On January 12, CoinDesk reported that the Consensus Capital Market Protocol Alkimiya announced the completion of $7.2 million in financing, led by Castle Island Ventures and 1kx, with participation from Circle Ventures, Coinbase Ventures, and Dragonfly Capital Partners. It is reported that this round of financing aims to help miners and stakeholders attempting to hedge cash flow during the bear market. Additionally, Alkimiya plans to launch on the Ethereum mainnet this quarter.

ChainCatcher previously reported that last March, Alkimiya announced its official launch on the Avalanche mainnet. (Source Link)

5. Cryptocurrency market maker CyberX completes $15 million Series A financing, led by Foresight Ventures

On January 13, The Block reported that cryptocurrency market maker CyberX completed $15 million in Series A financing, led by Foresight Ventures.

Founder Zack Fan stated that the company's valuation has risen to "the range of hundreds of millions," and this deal did not involve other investors, "although other investors were interested, the company ultimately chose a single investor." The funds will be used to improve its proprietary risk management framework, which monitors on-chain and off-chain data in real-time. (Source Link)

6. Web3 entertainment technology developer Sortium completes $7.75 million seed round financing, with participation from crypto hedge fund Arca

On January 14, CoinDesk reported that Web3 entertainment technology developer Sortium completed $7.75 million in seed round financing, with participation from cryptocurrency hedge fund Arca.

Sortium CEO Marc Seal told Coindesk that there were other investors in this round, but he did not disclose specific names. Sortium focuses on showcasing its technology framework to help potential partners and clients understand the goals that generative AI systems, blockchain, and dynamic private economic systems can achieve. The startup is also preparing to launch its first play-to-earn game. In terms of funding, Sortium is still considering accepting up to $2 million more from investors interested in the seed round, and the company is also formulating strategies on how and when to conduct Series A financing. (Source Link)