Genesis problems and $50 million Coinbase fine: top crypto and Web3 news for January 4

What’s up, Genesis?

According to Bloomberg, cryptocurrency brokerage and lender Genesis, owned by Digital Currency Group (DCG), has not yet sorted out its problems. The platform was forced to stop withdrawing funds last November. Genesis Global Trading’s interim CEO said it needs more time to sort out its complicated financial situation. It smells like bankruptcy.

Coinbase will have to shell out $50 million

Crypto exchange Coinbase will pay a $50 million fine to the New York State Department of Financial Services to settle charges that it allowed users to open accounts without conducting sufficient background checks. Regulators found that the crypto exchange’s policies violated anti-money-laundering laws.

The settlement also requires Coinbase to invest $50 million over the next two years to strengthen its compliance program.

SBF pleads not guilty

Sam Bankman-Fried, the former CEO of bankrupt cryptocurrency exchange FTX, pleaded not guilty to fraud and conspiracy charges, Reuters writes. Bankman-Fried, who faces eight criminal charges, including fraud and campaign finance violations, pleaded not guilty to any of the charges at a hearing in New York federal court through his attorney. 

Wyre and NFT Inspect announced their closure

Wyre, a cryptocurrency payments business, will cease operations by the end of January. The reason was the downturn in the cryptocurrency market after the collapse of FTX.

NFT Inspect, a popular research tool for measuring the value of NFTs and the strength of their community, will also cease to exist on January 17.

No more Riot Blockchain

Bitcoin mining company Riot Blockchain said it is changing its name to Riot Platforms. The company believes the new signage will more accurately reflect its “increasingly diversified business operations.”

Riot Blockchain, whose market capitalization has plummeted more than 85 percent over the past year amid a crypto winter, is still the world’s most expensive publicly traded bitcoin mining company.