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Report: Luno Africa Says Customers And Operations Not Affected By Turmoil At Genesis Capital

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Report: Luno Africa Says Customers And Operations Not Affected By Turmoil At Genesis Capital

Just days after reassuring concerned customers, Marius Reitz, the general manager of crypto exchange Luno Africa, recently reiterated the company has not been impacted by Genesis Capital’s decision to pause withdrawals. He added Luno customers still have access to funds in the savings wallet despite its lending partner’s decision to freeze withdrawals.

Customers Retain Access to Funds in the Savings Wallet

According to Marius Reitz, general manager of the crypto exchange Luno Africa, his company is operating normally and has not been affected by Genesis Capital’s suspension of “redemptions and new loan originations.” Reitz added that the Digital Currency Group (DCG)-owned exchange has so far not seen “any significant changes in deposits, withdrawals or trading volumes.”

As reported by Bitcoin.com News, Genesis had paused customer withdrawals “in response to the extreme market dislocation and loss of industry confidence caused by the FTX implosion.” After the announcement by Genesis, which is also owned by DCG and is Luno’s lending partner for its savings wallet, rumors claiming that the crypto exchange could pause withdrawals began to swell.

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To quell the speculation, Luno, which was acquired by DCG in 2020, initially issued a statement on Nov. 16 which reassured worried customers it had taken steps to ensure access to funds in the savings wallet would be retained “in the event withdrawals from Genesis are not possible.” However, continuing reports suggesting that Genesis is failing to plug a billion-dollar hole in its books have fueled bankruptcy rumors.

Luno an Independent Operating Subsidiary of DCG

Although Genesis has since ruled out filing for bankruptcy, the persistent rumors have seemingly forced Luno’s general manager to push back against withdrawal freeze speculation. In his latest remarks concerning the issue, Reitz reportedly said:

Luno remains a wholly owned, independent operating subsidiary of DCG and this has not changed. Luno’s customers and operations haven’t been affected during this period.

In an earlier statement, the crypto exchange claimed that “all savings wallet funds are now on the Luno platform” which meant that customers had full access.

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Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Crypto exchange Kraken to start layoffs as crypto winter persists

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Crypto exchange Kraken to start layoffs as crypto winter persists

  • Kraken plans to lay off nearly 30 percent of its overall headcount because of crypto winter
  • The company is providing a number of support for those  losing their jobs

The second largest crypto exchange in the United States – Kraken – announced it would start laying off its employees. The crypto platform is planning on reducing its overall headcount by 30%. This means that approximately 1,100 employees would lose their jobs.

Notably, the company has cited market conditions as the reason behind the move. The firm also stated that its first call of action was to slow down the hiring process. However, the firm had to opt for this action due to “negative influences on the financial markets.”

The reduction in the staff would put the company’s overall headcount the same as it was a year ago. The firm said,

“Since the start of this year, macroeconomic and geopolitical factors have weighed on financial markets. This resulted in significantly lower trading volumes and fewer client sign-ups.”

In addition, Kraken has listed a number of support that would be provided to those losing their jobs. This includes separation pay, healthcare, performance bonus, and outplacement support. The crypto exchange will also be giving immigration support to those working on a company-sponsored visa.

Jesse Powell, the CEO and co-founder of Kraken, said,

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“I’m confident the steps we are taking today will ensure we can continue to deliver on our mission which the world needs now more than ever before. I remain extremely bullish on crypto and Kraken.”

Kraken is the latest to join the layoff trend, while Binance moves the opposite direction

Notably, Kraken is the latest crypto exchange to join the layoff trend in the crypto market. Many other exchanges including Coinbase have been actively laying off their employees since the beginning of this year. Just last month, Crypto.com, another prominent crypto exchange, reportedly laid off as much as 30%-40% of the overall workforce.

However, the only prominent crypto exchange that has not yet laid off any employees is Binance. The largest crypto exchange in the world is, in fact, hiring more employees actively. In June, when most of the companies were engaging in a firing saga, Binance announced it was going add 2000 more to its global team.

Moreover, Binance’s CEO – Changpeng Zhao – recently said that the team has doubled from what it was a year ago. CZ also said,

At the time of this tweet, @Binance had 5900 people. Today we have 7400+ people. Targeting 8000 or so by end of year. Hiring continues.

Priya is a full-time cryptocurrency writer at AMBCrypto concentrating mostly on privacy coins. A graduate in economics, Priya focuses on developments on Ethereum and blockchain technology.

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Crypto Exchange Bitfront Shuts Down Amid Industry Challenges

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Crypto Exchange Bitfront Shuts Down Amid Industry Challenges

Cryptocurrency exchange Bitfront has announced its intention to cease operations in the coming months, citing challenges facing the industry. The U.S. trading platform, backed by Japan’s social media giant Line, indicated the decision is unrelated to the collapse of FTX.

Line-Supported Digital Asset Exchange Bitfront Suspends New Sign-ups

Bitfront, a crypto exchange operating in the United States, has suspended new sign-ups and credit card payments while planning to cease operations in a few months’ time. The move comes despite efforts to overcome the current challenges in the “rapidly evolving” crypto industry, the company announced, quoted by Reuters and Bloomberg.

In the statement published on its website, the exchange explained it has “regretfully determined that we need to shut down Bitfront in order to continue growing the Line blockchain ecosystem and Link token economy.” The U.S.-based platform, which launched in 2020, is backed by the Japanese social media firm Line Corp.

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Bitfront also pointed out that the decision to close down is not related to the problems of “certain exchanges that have been accused of misconduct,” an indirect reference to FTX, one of the largest global players in the market before it collapsed and filed for bankruptcy protection on Nov. 11 amid liquidity issues.

Other companies in the space, like Blockfi for example, have been hurt by exposure to FTX. The crypto lender announced on Monday it has petitioned for Chapter 11 bankruptcy protection along with eight of its affiliates. When Blockfi paused withdrawals earlier this month, it specifically cited the “lack of clarity” regarding the state of FTX at the time.

With a 24-hour volume of less than $94 million, only a dozen trading pairs and six coins, according to Coingecko, Bitfront has a small share of a market with a total trading volume of almost $57 billion over the same period, the Bloomberg report noted.

The exchange informed users that new sign-ups and card payments have been suspended on Nov. 28 while deposits in cryptocurrency and U.S. dollars will be halted on Dec. 30. It also urged customers to withdraw all their assets by March 31, 2023, when all withdrawals will be suspended as well.

Tags in this story

Bankruptcy, Bitfront, Challenges, collapse, Crypto, crypto exchange, Cryptocurrencies, Cryptocurrency, Exchange, ftx, Issues, Japan, Line, operations, Services, shutdown, Social Media, suspension, U.S.

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Do you expect other crypto trading platforms to go out of business? Let us know in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bilyuchenko

10,000 Bitcoin Withdrawn From Wallet Of Defunct Crypto Exchange Wex, Former BTC-E

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10,000 Bitcoin Withdrawn From Wallet Of Defunct Crypto Exchange Wex, Former BTC-E

A large amount of cryptocurrency kept in a wallet associated with crypto exchange Wex, successor of the infamous trading platform run by alleged money launderer Alexander Vinnik, has moved for the first time since 2017. The 10,000 bitcoins in question, worth over $165 million, have been transferred to new addresses in several transactions.

Bitcoin Stored in Dormant Wex Wallet Moves for the First Time in Five Years

The unknown holder of a bitcoin wallet linked to the now-defunct Wex, once the largest cryptocurrency exchange in the Russian-speaking market, has withdrawn 10,000 coins. Funds at this BTC address last moved in September 2017, when the same amount was sent out.

Wex was established in that year, following the collapse of BTC-e, which closed down after the arrest in Greece of one of its operators, Alexander Vinnik. The Russian IT specialist, who is currently in U.S. custody, is accused of laundering up to $9 billion through the exchange.

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The transfer of the digital money was first noticed by Sergey Mendeleev, founder of cryptocurrency exchange Garantex and CEO of defi banking platform Indefibank. He revealed the discovery on his Telegram channel, according to a report by the leading Russian crypto news outlet Bits.media. The coins moved on Wednesday, Nov. 23.

Several transactions were made, including two likely test transfers of small amounts, before the 10,000 BTC was sent. 3,500 BTC was transferred to one address and 6,500 BTC went to another, likely a change address. The value of the withdrawn cryptocurrency, at the time of writing, exceeds $165 million in fiat equivalent.

Some $450 million was lost when Wex went offline in 2018. The platform is considered the successor of BTC-e, which allegedly processed money from the Mt Gox hack and other cybercrimes. It was operated by World Exchange Services, a company based in Singapore and co-founded by Aleksey Bilyuchenko, former partner of BTC-e’s administrator Alexander Vinnik.

Vinnik was detained in the summer of 2017 while on vacation in Thessaloniki. Besides the U.S., France and Russia also sought his extradition. In December 2019, Greek authorities handed him over to France where he served (taking into account pre-trial detention) a five-year sentence for money laundering. Vinnik was then returned to Greece which immediately transferred him to the United States where he is now facing multiple charges.

In March this year, Russian law enforcement detained a crypto entrepreneur associated with an unidentified crypto exchange and suspected of embezzling funds and property. At the time, Sergey Mendeleev claimed the arrested man was none other than Bilyuchenko. His ownership of Wex was exposed in a report by the BBC.

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Dmitry Vasiliev, another co-owner and former chief executive of Wex, was arrested in Poland in August 2021 and later released by the Polish authorities before returning to Russia. In June 2022, he was also detained at the airport in Zagreb upon entering Croatia, on a red warrant issued by Interpol on request from Kazakhstan where he is wanted on fraud allegations.

In November last year, Mendeleev unveiled that the Russian Ministry of Interior had failed to act on a request by Wex users to help in the blocking and seizing of crypto funds removed from a wallet controlled by the exchange. Over 10,000 ETH, worth almost $46 million at the time, were withdrawn and transferred to other platforms.

Tags in this story

Bilyuchenko, Bitcoin, Bitcoin Wallet, BTC-e, Crypto, crypto exchange, crypto wallet, Cryptocurrencies, Cryptocurrency, Exchange, Money Laundering, Russia, russian, vinnik, Wallet, Wex

Who do you think withdrew the cryptocurrency from the wallet linked to Wex and BTC-e? Share your thoughts on the case in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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