Genesis restructuring, new regulation in the UK scared Bybit and other events in the crypto industry

We have collected the most important news from crypto industry participants over the week.

Gemini Earn users have a chance to return funds from Genesis Global Capital

DCG proposed a new option for restructuring its subsidiary Genesis Global Capital. The document offers unsecured creditors a basic recovery of 70-90% of the amount claimed.

The agreement, pending lender approval, aims to renegotiate the terms of a $630 million loan between Genesis and DCG.

According to the firm, Gemini Earn users who have ~$607 million in collateral could potentially receive up to 110% of the total claims amount.

The preliminary agreement between the companies involved DCG repaying two loans worth $328.8 million with a repayment period of two years and $830 million with a maturity of seven years – from 70% to 90% of the funds invested by investors in dollar equivalent. Part of the payments was supposed to be in the form of a share in the capital of DCG. Lenders called it “unsatisfactory.”

Deloitte and Bitwave will develop corporate-focused solutions to ensure compliance with cryptocurrency accounting standards

Provider of enterprise solutions for the management, accounting and taxation of cryptocurrencies Bitwave, as well as one of the leading auditing and consulting firms Deloitte, will simplify the accounting of digital assets for companies.

The combination of software and competencies will provide speed, as well as increased process efficiency, savings and compliance with regulatory requirements, according to a press release.

In addition to its partnership with Deloitte, Bitwave announced the acquisition of payment and accounting platform Gilded. Financial terms are not disclosed.

The transaction will improve the firm’s offerings while increasing transparency in reporting and taxation in the United States. More specifically, crypto payment and invoicing features, as well as tools for tracking taxes and accounting.

New UK regulation scares Bybit

The upcoming entry into force of new rules for the promotion of cryptocurrencies in the UK on October 8 has forced the management of some platforms to reconsider their plans for the future.

CEO of the Bybit cryptocurrency exchange Ben Zhou allowed the cessation of services for users from the United Kingdom, complaining about stricter regulation.

“We will most likely have to retreat in many countries. I think the UK – we’ll have to leave it very soon. We recently left France.” – said the head of the platform.

Despite the virtual ban on crypto derivatives in the country since 2021, some exchanges provided similar services while registered in other jurisdictions. This practice will be stopped.

The company later announced its intention to maintain a presence in the UK market in the long term.

At Bybit, we consider the UK to be a highly important market for the advancement of crypto and blockchain technologies. Our commitment to this market is unwavering, and we intend to maintain our presence in the UK for the long term. Meanwhile, we are dedicated to working…

— Bybit (@Bybit_Official) September 14, 2023

Crypto exchange Luno plans to suspend some products for UK users on similar grounds. Two days before the aforementioned rules take effect, they will lose the ability to purchase and trade digital assets, according to a document obtained by the media.

BitMEX launched a platform for forecasting real events

Crypto exchange BitMEX has launched a forecasting platform that allows you to bet on the outcome of real events.

Initially, traders have access to three USDT-denominated bet contracts:

• for ETF approval;
• to compensate FTX users;
• approving a prison sentence for the founder of this platform, Sam Bankman-Fried.

Celsius and Core Scientific settle dispute for $45 million

Crypto lending platform Celsius and mining company Core Scientific have settled a dispute regarding a cryptocurrency mining agreement worth $45 million.

In 2021, Celsius invested over $200 million in US blockchain hosting provider Core Scientific, Texas-based mining company Rhodium Enterprises and software developer Luxor Technologies. Later, the company allocated another $300 million for these purposes.

In January of this year, amid the restructuring process of Celsius, Core Scientific turned off the equipment belonging to the platform. The decision was made in response to non-payment of dues. Celsius sought $312 million in damages.

The settlement agreement involves Celsius paying Core Scientific $14 million in cash. The remaining $31 million will be listed as adjusted assets. The agreement requires court approval.

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