The cryptocurrency industry saw the spectacular collapse of one of its giants earlier this month, which ultimately resulted in FTX filing for Chapter 11 bankruptcy. Shortly after, though, there were suspicious movements from one of its accounts, many related it to a hack or even an inside job. However, the Securities Commission of the Bahamas...Read More
Dogecoin’s Shibetoshi Nakamoto believes a potential crash of the crypto exchange Binance or the stablecoin-issuer Tether could severely destabilize the entire industry. He also advised people to do appropriate research and understand the digital asset’s sector specifics before entering it. Binance/Tether Collapse Could be Devastating The Co-Creator of the memecoin Dogecoin – Billy Markus (better...Read More
After Hacktober, which saw countless DeFi projects being exploited for hundreds of millions of dollars in total, November was expected to be a calmer month for crypto. However, that was not the case as the industry saw one of the fastest, loudest, and most shocking deterioration of a giant – FTX. An analysis by the...Read More
A new report by the Wall Street Journal claimed that the disgraced founder and former CEO of FTX took over 70% of the funds gathered from a funding round in October last year. He used the Binance buyback deal to justify his actions. CryptoPotato reported the fundraising round in October 2021 when FTX closed a...Read More
The enterprise blockchain provider Ripple wants to strengthen its presence in the European Union by seeking to secure a virtual asset service provider (VASP) license from Ireland’s central bank. Ripple’s General Counsel Stuart Alderoty and CEO Brad Garlinghouse also gave their two cents on FTX’s fiasco, arguing that global regulators should impose comprehensive rules on...Read More
After Sam Bankman-Fried’s crypto empire imploded last week, exchanges are rushing to soothe the nerves of infuriated investors. Digital banking firm, Revolut is the latest one to distance itself from FTX. In an emailed statement, Revolut told users that it did not have “material exposure” to the bankrupt crypto exchange. Revolut Monitoring the Situation The...Read More
As the public opinion of former crypto hotshot Sam Bankman-Fried continues to wane, criticism aimed at him and his business is only growing fiercer. Jesse Powell, Kraken’s current CEO, who will be stepping down shortly, already criticized Sam Bankman-Fried for his attitude and hubris. According to Powell, SBF acted like he knew everything despite being...Read More
SkyBridge Capital, the asset management firm of American millionaire investor Anthony Scaramucci, sold 30% stakes to the now-bankrupt Sam Bankman-Fried’s crypto empire FTX in September before the exchange’s sudden liquidity crisis earlier this month at an undisclosed amount. However, the investment came with a catch as the fund manager was required to purchase FTX token...Read More
Crypto lending firm – Genesis – reportedly sought an emergency loan of $1 billion from investors before notifying its clients of suspending redemptions this week. According to The Wall Street Journal, the confidential fundraising document stated that the company needed access to the credit facility by 10 a.m. Monday, specifying a “liquidity crunch due to...Read More
One week after the implosion, legal woes for FTX have only intensified. According to the latest court filings from the company’s Bahamian liquidators, there are signs of “serious fraud and mismanagement” on the bankrupt crypto exchange’s part. The document filed in the US Bankruptcy Court of the Southern District of New York revealed that the...Read More
Michael Burry, the fund manager and investor who became popular from the “The Big Short” movie, believes gold will shine as investors seek safety from crypto risks due to the catastrophic collapse of Sam Bankman-Fried’s FTX. Burry is notoriously famous for shorting the U.S. housing market and profiting from the 2008 financial crisis. He also...Read More
The revelations surrounding FTX’s downfall continue with full force. Now, according to the most recent court filings, Alameda Research – SBF’s trading firm, had some privileges. The trading firm of Sam Bankman-Fried, Alameda Research, was secretly exempted from some aspects of the auto-liquidation protocol of FTX. It’s worth noting that SBF was also the acting...Read More
John J. Ray III may have unwounded major corporate failures, but in over four decades of legal and restructuring experience, he claims to have never seen such “unprecedented” management failures as in the case of the bankrupt FTX cryptocurrency exchange under Sam Bankman-Fried’s tenure. In the latest filing to federal bankruptcy court, FTX’s new chief...Read More
On Nov. 17, crypto compliance company Chainalysis posted a market update, and it was not all doom and gloom. The firm acknowledged that other companies may face insolvency issues in the wake of last week’s FTX downfall. “Many market fundamentals remain stable,” it added, pointing out that the FTX situation stemmed from “financial fraud rather...Read More
As the remains of FTX continue to circle the drain amidst a storm of cryptic tweets from the former CEO, more and more firms have taken the necessary measures to clear the air, announcing their lack of exposure to the company. Meanwhile, certain entities who did have exposure – such as Huobi – are taking...Read More
The Australian Securities & Investments Commission (ASIC) suspended the FTX Australia license until May 15, 2023, following the exchange’s recent fiasco. The crash has affected around 30,000 Aussie consumers who are exploring how to retrieve their funds. The Latest Strike on FTX Despite the termination of its license, FTX’s Australian subsidiary will be able to...Read More
The unforgivable mishandling of customer funds has left millions of users with trapped funds, crippled years of constructive industry reputation, and triggered new credit contagion risks. Amidst this chaos, the native token of the decentralized crypto derivatives exchange, dYdX, has risen by more than 50% over the past week. According to prominent crypto analytic firm,...Read More
FTX investors have sued the company’s ex-CEO Sam Bankman-Fried for illegally offering yield-bearing crypto accounts at the now insolvent exchange. The lawsuit, filed in Miami on Tuesday, alleges that FTX’s crypto-yield-bearing accounts were unregistered securities illegally sold in the U.S, according to Reuters. Now that the exchange has failed to honor withdrawals, investors claim to...Read More
Amidst speculation over Sam Bankman-Fried’s whereabouts, the authorities are mulling over extraditing the former CEO of the bankrupt crypto exchange, FTX, back to the United States. According to the latest Bloomberg report, law-enforcement officials in the US and Bahamas have been engaged in talks over SBF as they investigate his role in FTX’s implosion. People...Read More
FTX’s Bahamas unit – FTX Digital Markets Ltd – has filed for Chapter 15 bankruptcy seeking protection from creditors in the United States. Chapter 15 bankruptcy essentially enables a foreign debtor to file for bankruptcy in the US court system. According to the report, the filing will allow provisional liquidators who can serve as foreign...Read More
Binance, the world’s leading cryptocurrency exchange, has halted trading for the FTT/USDT trading pair following the FTX fallout. The exchange has also removed FTT from its derivatives platform. The move hasn’t been officially announced, but a search on the Binance exchange reveals no results for the FTT/USDT trading pair. The same is true for the...Read More
Industry leader Binance has shared its principles on how the fiasco can be avoided in the future. On Nov. 15, Binance CEO Changpeng ‘CZ’ Zhao tweeted the most important requirements that his and every other centralized exchange should adopt in order to ensure user trust. He also said he is working with industry partners to...Read More
The Executive Chairman of MicroStrategy and prominent bitcoin bull – Michael Saylor – likened the CEO of FTX – Sam Bankman-Fried – to the notorious Jordan Belfort, also known as “The Wolf of Wall Street.” In his view, SBF “was using stolen money” and cooperated with corrupt regulators to keep his business going. Make a...Read More
One of the most successful NBA teams – Golden State Warriors – reportedly paused all marketing endeavors related to the distressed crypto exchange FTX. The latter filed for bankruptcy last week after failing to honor its clients’ withdrawal requests. According to recent coverage, the basketball club stopped advertising all FTX products and services. The last...Read More
BlockFi is looking for answers to its liquidity troubles caused by its heavy exposure to FTX – and bankruptcy is reportedly on the table. The crypto lending firm is already preparing a potential bankruptcy filing, people familiar with the matter told the Wall Street Journal. It’s also reportedly planning to lay off workers – a...Read More
The Seychelles-based crypto exchange – OKX – reportedly introduced a $100 million fund to aid companies with liquidity issues. The world’s largest cryptocurrency platform – Binance – launched a similar initiative to reduce the negative effects of FTX’s collapse. According to the Chinese reporter Colin Wu, OKX will distribute $100 million across numerous projects that...Read More
Sam Bankman-Fried, the former CEO of the now-bankrupt FTX, tried to rally financial support for his beleaguered crypto exchange. This comes as the platform is facing bankruptcy amid an $8 billion black hole in its balance sheets. FTX collapsed in spectacular fashion over the past week, triggering a contagion that has impacted the broader crypto...Read More
Liquid Global – a lesser-known crypto exchange acquired by FTX – has announced suspending withdrawals on November 15. The move complies with the bankruptcy proceedings of FTX. Its official announcement read, “Due to the Chapter 11 filing by FTX Trading International the ultimate beneficial owner of Quoine Pte. Ltd, Liquid Exchange (Quoine Pte.) is halting...Read More
The news surrounding FTX, its former CEO Sam Bankman-Fried, and his trading firm Alameda Research doesn’t seem to stop. In what seems to be the latest bit of negative information, the Wall Street Journal reports that Alameda frontran tokens before their listings on the exchange. Per the most recent coverage by the WSJ, crypto trading...Read More
Sam Bankman-Fried, the CEO of the bankrupt cryptocurrency exchange FTX, is probably one of the world’s most hated people right now. After being hailed as the savior of doomed projects, possible personal motivations for his actions are now being dissected. Amid FTX contagion fears, investor confidence has been severely dented. Extreme fear has gripped the...Read More
