Crypto Flipsider News – Huobi layoffs; French crypto rule; NFT volume surge; 3AC served summons; DCG shutdown of DailyCoin

Read in the summary:

• Turbulence at Huobi Amid 20% Job Cuts and Insolvency Justin Sun Rejects Rumors

• French central banker proposes mandatory licensing of crypto firms in 2023

• Daily trading volume for NFTs on January 5 rises to a three-month high

• Three Arrows Capital Founders served summons via Twitter

• Crypto conglomerate DCG closes its asset management subsidiary

Turbulence at Huobi Amid 20% Job Cuts and Insolvency Justin Sun dismisses rumours

Crypto exchange Huobi plans to lay off around 20% of its employees amid growing crypto winter and R&D in the crypto industry. The report comes after the company’s reputation for being insolvent.

In addition to the massive layoffs, employees have reported canceled bonuses, payment disputes and communication breakdowns. Colin Wu has also reported that Huobi is trying to convert wages from fiat to USDT/USDC.

On-chain data magnifies the uncertainty surrounding Huobi. On December 15, Huobi saw an inflow of $87.9 million. However, it has experienced $204.65 million in outflows, with $75.1 million occurring in the last 24 hours alone.

Meanwhile, Justin Sun, an “advisor” to Huobi (although many see him as the man in charge of the exchange), has reportedly paid out over $1.5 billion in fiat since October, according to his tagged wallets.

Flip pages:

• Justin Sun has said that the “structural adjustment” in Huobi has not started yet, but is expected to be completed by the end of the first quarter.

Why you should care

Addressing rumors of insolvency, Justin Sun said the business performance of the exchange was “good” and that its assets will always be fully protected.

French central banker proposes mandatory licensing of crypto firms in 2023

François Villeroy de Galhau, the Bank of France chief, has suggested that the country tighten its grip on companies providing crypto services this year – ahead of EU-wide regulation in 2024.

Villeroy has proposed that it become mandatory for Digital Asset Service Providers, or DASPs, to obtain licensing from authorities due to the recent volatility in the sector.

The DASP offered by the French financial regulator, Autorité des marchés financiers (AMF), is optional, with the leading crypto exchange, Binance, as one of the firms receiving the license.

Hervé Maurey, a French senator, also tabled an amendment in December that would eliminate the “registration” option. Maurey cited the collapse of FTX as a reason for tighter regulations.

Flip pages:

• France has strict cryptocurrency policies, including restrictions on cryptocurrency advertising and a flat 30% tax on all income from crypto investments.

Why you should care

The French regulators see the FTC collapse as a moment of “reckoning and awareness”, justifying the need for stronger rules.

Daily trading volume for NFTs on January 5 rises to a three-month high

After non-fungible token (NFT) trading volume collapsed by 97% from January 2022 to September 2022, there appears to be a resurgence, with daily trading volume on Thursday, January 5.

Data from NFTGO shows that single-day trading volume for the NFT market on January 5 exceeded 32,000 ETH – the highest daily volume recorded in the past three months.

Seven-day market cap and volume of NFTs. Source: NFTGO

Over 30.00 ETH has been traded in the last 24 hours. There are over 37,000 traders, with OpenSea’s ETH-denominated trading volume also hitting a two-month high.

Flip pages:

• Wash Trading of NFTs – when a trader buys and sells the same asset – has recorded a 59% decline over the past six months.

Why you should care

The increase in the daily trading volume of NFTs shows that there is still interest in digital assets despite their fall in value.

Three Arrows Capital Founders served summons via Twitter

Teneo liquidators representing collapsed Singapore-based hedge fund Three Arrows Capital (3AC) on January 5 served co-founders Kyle Davies and Su Zhu with a summons on Twitter following complaints about their non-compliance and unknown location.

The unconventional subpoena granted by Singapore authorities and followed by a US bankruptcy court order seeks to gain access to all information about the defunct firm, its seed phrases and private keys for 3AC’s digital and fiat assets from the co-founders who somehow manage to maintain an online presence.

The subpoenas require Davies and Zhu Su to produce the required document, regardless of whether it is in their custody or with a third party, by the January 26 deadline. They must also allow an inspection of 3AC’s premises on a specific date and time.

The subpoena requires Davies and Zhu Su to state the date and nature of the document handled by third parties and explain why the paper is unavailable.

Flip pages:

• So far, Teneo has seized investments worth $35.6 million and $2.751 million of the $3 billion owed by 3AC.

Why you should care

Teneo assured creditors of asset recovery as it focuses on advancing the liquidation process.

Crypto conglomerate DCG closes its asset management subsidiary

Digital Currency Group (DCG), a crypto conglomerate and parent company of bankrupt crypto broker Genesis and digital asset manager Grayscale, announced the closure of its subsidiary HQ Digital on January 5.

According to the report, the company, which had over $3.5 billion under management as of December, cited the slowdown in economic events and prolonged crypto winter as reasons for winding down its headquarters from January 31.

However, the company may revisit the branch sometime in the future. The move came on the same day Genesis laid off 30% of its workforce as pressure from creditors and the looming threat of bankruptcy mounted.

The implosion of FTX in November has led to major consequences for DCG and its subsidiaries, such as the public dispute between DCG CEO Barry Silbert and Gemini co-founder Cameron Winklevoss over a whopping $1.675 billion in debt.

Flip pages:

• A Redditor claims that Silbert had commingled the company’s money while working at DCG and will be arrested if FTX is found to have an $8 billion hole in its books.

Why you should care

The bear market has weakened Genesis as it cut 50% (currently 145 employees) of its workforce in less than a year.

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