Latest Crypto News: OKX Proof-Of-Reserves Report Shows $7.5 Billion, Crypto Leading Firm Genesis Planning For Bankruptcy

Here are some of the major developments from the world of crypto over the past few days
Latest Crypto News: OKX Proof-Of-Reserves Report Shows $7.5 Billion, Crypto Leading Firm Genesis Planning For Bankruptcy

A proof-of-reserves document released by cryptocurrency exchange OKX on January 19, 2023 reveals that it has $7.5 billion in reserves, none of which are made up of its native cryptocurrency.

The specific breakdown of assets has been shown for the first time in this third proof-of-reserves that OKX has disclosed.

With a reserve ratio of 105 per cent for Bitcoin (BTC), 105 per cent for Ethereum (ETH), and 101 per cent for USDT, the report demonstrates that the exchange is over-collateralised.

The precise asset mix being published by OKX is a response to CryptoQuant creating a criteria to assess the “cleanliness” of reserves.

This is described by CryptoQuant as how dependent an exchange is on its native token. Data from CryptoQuant demonstrates that OKX’s reserves are entirely clean. Huobi is 60 per cent clean, Bitfinex is 70 per cent clean, and Binance is 87 per cent clean.

“I personally think everyone will learn a ton over the next six months to a year. We will all stress test each other’s proof-of-reserves, hopefully in a constructive way,” Haider Rafique, OKX’s chief marketing officer told CoinDesk in an interview.

“We are all going to learn from each other and ask the hard questions – hopefully most venues have good intentions,” he added.

Genesis Plans To File For Bankruptcy

Well-known Bitcoin lender Genesis Global Capital is getting ready to declare bankruptcy as early as this week, Bloomberg wrote in an article.

The company has warned that if it is unable to raise the necessary funds, it may file for bankruptcy protection. It also states that it is now engaged in private negotiations with a variety of creditor groups.

The firm has been attempting to obtain new cash or come to an agreement with creditors, and therefore, it can be presumed that a bankruptcy filing has been anticipated for weeks.

After the failure of FTX, Genesis came under fire for abruptly blocking customer redemptions and stopping new originations in mid-November of last year.

Many people have lost their lives as a result of the collapse of cryptocurrency exchange FTX, including Core Scientific Inc. and BlockFi, two businesses that operated as cryptocurrency lenders and miners, respectively.

In the months after the FTX fiasco, both of these businesses sought bankruptcy protection.

The Winklevoss brothers, who invented cryptocurrency, own Gemini, which Genesis is also embroiled in a legal conflict with. Genesis has been charged with owing Gemini $900 million in relation to the Earn cryptocurrency loan product, which Gemini and Genesis jointly operated.

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