Bitcoin (BTC) Fights To Regain $21,000 Amid Genesis Rumors and Charges Against Little-Known Crypto Exchange

Bitcoin (BTC) is on the cusp of regaining $21,000 as charges are filed against a little-known crypto exchange platform and rumors swirl around embattled crypto lender Genesis.

In a new press release, the U.S. Department of Justice (DOJ) is announcing charges against Hong Kong-based crypto exchange Bitzlato and its founder, Russian national Anatoly Legkodymov.

The DOJ alleges that Legkodymov failed to maintain proper regulatory safeguards, including having substandard anti-money laundering practices.

As stated by Assistant Attorney General Kenneth A. Polite in the press release,

“As alleged, the defendant helped operate a cryptocurrency exchange that failed to implement anti-money laundering safeguards and enabled criminals to profit from their wrongdoing, including ransomware and drug trafficking.

The National Cryptocurrency Enforcement Team’s tremendous efforts to disrupt Bitzlato and arrest the defendant demonstrate that we will continue to work with our partners – both foreign and domestic – to combat cryptocurrency-fueled crimes, even if they transcend international borders.”

As for crypto lender Genesis, a new report by Bloomberg details how the embattled firm is gearing up to file for bankruptcy as early as this week.

The company’s troubles began when crypto hedge fund Three Arrows Capital (3AC) went under last year and was unable to pay back a substantial loan.

Genesis’ troubles were exacerbated when prominent crypto exchange FTX, which held some of Genesis’ funds, disintegrated in November.

Sources familiar with the matter told Bloomberg that Genesis’ parent company, Digital Currency Group (DCG), is currently negotiating with creditors. If it fails to raise enough cash, it too may have to file for bankruptcy.

Despite the turmoil in the crypto industry, the king crypto has shown resilience. Bitcoin is changing hands for $20,894 at time of writing, a fractional gain on the day but a staggering 27% gain from its 30-day low of $16,464.

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Featured Image: Shutterstock/jovan vitanovski/Chuenmanuse