Genesis Crypto Brokerage Suspended Payments Following Sector Crash
  • Post author:
  • Post category:News
  • Post comments:0 Comments

This had become the main form of economic support to Ukraine, however, at the beginning of November 2022, FTX imploded triggering a systemic crisis. Once again, the cryptocurrency market is under global scrutiny. The fall of FTX is of such magnitude that it transcends the crypto world. What was a leak of information about the use of company resources to finance a crypto asset from another company with the same CEO was the trigger for a series of catastrophic events.

The wunderkind of the World Economic Forum, Samuel Bankman-Fried, is in the center of a veritable storm of a global financial crisis. FTX’s imminent bankruptcy could be a deadly blow to international political economy, particularly to the West. For some months now, the international banking system has been facing a new collapse and this could be the straw that breaks the camel’s back.

The chain reaction seems to have no end. The accusations -many still in the middle of the investigation process- go as far as implicating the Democratic party in a money laundering operation. FTX, not only was one of the main donors in the presidential campaign of Joe Biden, but was at the center of Western financing of the Ukrainian War. Financing that, in addition, found a space of opportunity in the private arms sector thanks to the facilities granted by the US president himself.

Donations, weapons, war, cryptocurrencies and politics are all words that, articulated in the same phenomenon, raise notable suspicions. That is to say, a great source of conspiracy theories, even more so, when in the conceptual center there is an intermediary that blew up the entire system. Comparisons with the financial crisis of 2008 and Lehman Brothers bankruptcy seems inevitable. A Samuel Bankman-Fried legal accountability awaits him, while the investigations reach the US court of justice.

The optimism of the Ukrainian troops advancing, retaking territory, will be noticeably affected. In the interim, Joe Biden and Xi Jinping held a three-hour meeting in Bali. It was the first face-to-face meeting between the leaders of the main economic powers in the world today. Meanwhile, Binance, created by the Chinese-Canadian businessman Changpeng Zhao, is positioned as the most important Exchange in the world.


The crypto ecosystem will be called into question again, as the international banking system enters a new phase of crisis. It is to be expected that new regulations will seek to weaken the most “independent” crypto assets and increasingly place Central Bank Digital Currencies (CBDC). However, the contradiction remains valid. Aid for Ukraine it was possible thanks to legal laxity. The other concern is the amount of weapons that reached Ukraine through various routes (formal and informal) turning the country into a potential arms trafficking node, thanks to many well-intentioned donors. Crypto assets flourish in informal markets.

Since the war began, most of the companies in the military industry have been increasing their profits remarkably. Without going any further, since March 2022 the share value of Lockheed Martin, the most important company in the sector, has been at a historical record.

The concept of “geopolitical risk” it is beginning to position itself as a new political and economic-financial element to consider when understanding the international political economy. It seems increasingly evident that the coming years will be characterized by ups and downs, tumults and shocks that even the most robust economies will have to face. In this sense, the world of crypto-assets offers an alternative to an increasingly unstable economic world, with a weakened traditional banking system, where economic bids will be correlated with national currencies. The desire for macroeconomic stability will be replaced by the opportunity for financial gain, which is not free of risk.

Institutional regulations, both locally and internationally, will have their impact on individual actors and incentives, but have the disadvantage of the continuous and accelerated technological development of a world increasingly dependent on cyberspace. In this sense, cryptocurrencies emerge as an innovation and an experimental field in itself, with all the implications that this represents. This implies not only a new way of approaching finance, but also constitutes a new dynamic between states (and human beings) with money.

Graduate in Political Science, Master in Strategy and Geopolitics and PhD candidate in Political Science.

Leave a Reply