Community Discusses DCG Concerns, Binance Creates $1 Billion Industry Resilience Fund

There were rumors circulating in the community about the problems that the Digital Currency Group was having; Binance allotted one billion dollars to the Web3 industry recovery fund; the court extended the arrest of the Tornado Cash developer; and various other events took place during the previous week.

DCG Problems Amid the Collapse of FTX

At the end of the week, the news said that Genesis Global Capital, a crypto lender that was having money problems, had hired investment firm Moelis & Company to look into different options, including filing for bankruptcy. According to the sources, no definitive decision has been made as of yet, which means that the firm still has opportunities to avoid declaring bankruptcy.

Before this, it was   said that Binance did not help Genesis Trading when they needed it. According to The Wall Street Journal, the likely explanation for this behavior is that there is a possible conflict of interest between the business model of a DCG subsidiary and the exchange.

What is going on with FTX?

According to the data from the court, FTX owes a total of $3.1 billion to its top 50 creditors. There is no mention of their identities, although the greatest of the claims was worth $226 million.

Japanese cryptocurrency trading platform Liquid stopped all trading five days after telling customers they couldn’t withdraw cash because of an investigation into FTX crash that was still going on. In February of this year, the latter company purchased Liquid and the structures associated with it.

Changpeng Zhao said on November 24 that he would not rule out buying the assets of the Sam Bankman-Freed Exchange. According to him, it is possible to salvage at least some of them.

This has not been a good week for the creator of FTX, who is still struggling. According to Reuters’ findings, he, his parents, and top executives from several companies have acquired ownership in at least 19 homes with a combined value of $121 million.

Both Bankman-Fried and the NBA team known as the Golden State Warriors were charged with engaging in deceptive advertising. At the conclusion of the previous week, Turkish authorities opened an inquiry into the creator of FTX on suspicion that he engaged in fraudulent activity.

The Price of Bitcoin has Risen Past $16,500

Bitcoin prices have been fluctuating within a rather tight band of $15,470 and 16,800 since November 21. As this article is being written, the value of the first cryptocurrency has hovered around  $16,570. The majority of the top 10 digital assets by capitalization were located in the “red zone” during the time period under consideration. However, the value of some of them increased, such as the price of Dogecoin, which increased by about 24 percent; the quotations for BNB Coin, which increased by 15 percent; and XRP, which decreased by 5 percent.

The overall market for cryptocurrencies now has a capitalization of $880 billion after a recent surge. The Bitcoin dominance index is now at 36.2% after a recent drop.

Binance Reserves One Billion Dollars for The Web3 Recovery Fund

Exchange for cryptocurrencies The “recovery of the Web3 industry” is the primary goal of the Industry Recovery Initiative (IRI) that Binance has just established. The platform made a donation of one billion dollars to help him out, and it said that it intends to bring the total up to two billion dollars.

For the sake of maintaining openness and transparency, every member in the initiative is required to publish their decisions about the allocation of endowment capital.

When an organization becomes a member of the IRI, it will get access to what are known as “investment possibilities,” which are opportunities linked with initiatives that are looking for financial backing. There have already been 150 relevant applications lodged with the structure.

Earlier, the Bybit bitcoin exchange announced intentions to build a $100 million fund to serve institutional clients “during a tough era for the sector.” This “difficult period” refers to the current state of the cryptocurrency business.