5 Ways TradFi Investors Are Rethinking Crypto in the Wake of FTX

This group’s confidence was not shaken by the crypto-related events of the 2022 “pullback” of bitcoin (BTC), ether (ETH), and other coins, the crypto credit crisis or the ensuing contagion. Their reactions to these events ranged from sanguine (“the events of 2022 … do not mean much to me or crypto”) to fatalistic (“it [crypto] will bomb a few more times before it becomes institutional before we can trust actors know what they are doing”) to gleeful (“I’m all for the crash”), with several others viewed the events as a…

Signature Bank Sued for ‘Substantially Facilitating’ FTX Comingling

Statistica Capital, an algorithmic trading firm, and Statistica Ltd. claim the bank “had actual knowledge of and substantially facilitated the now-infamous FTX fraud,” according to a filing in the U.S. District Court for the Southern District of New York dated Feb. 6. “In particular, Signature knew of and permitted the commingling of FTX customer funds within its proprietary, blockchain-based payments network, Signet.” Source

DebtDAO to Burn 18M FTX User Debt Tokens Following Demand Frenzy

Huobi Global adviser Justin Sun explained the token offering in a tweet last week. “FUD token provides creditors with a new level of liquidity, allowing them to trade their FTX debt on the open market,” Sun said, adding it “has been confirmed” through a contract provided by DebtDAO that the debt is in the tens of millions of dollars. Source

Crypto ad deals for Super Bowl LVII fell apart after FTX collapse: Report

Fans watching the Kansas City Chiefs face off against the Philadelphia Eagles in Super Bowl LVII on Feb. 12 will reportedly not see a plethora of ad spots for cryptocurrency companies as they did in 2022. According to a Feb. 6 Associated Press report, there had been four potential deals with crypto firms for commercials costings roughly $6 to $7 million in the 2023 Super Bowl, all of which fell apart following the FTX bankruptcy filing in November. Fox Sports’ executive vice president of ad sales Mark Evans reportedly said…

Crypto Exchange Huobi Lists New ‘FUD’ Token Backed by FTX Users’ Debt With Approval From Justin Sun

Prominent crypto exchange platform Huobi has listed a new altcoin project backed by the debt of FTX users, according to a new company announcement. Huobi says it is supporting the token FTX Users’ Debt (FUD) with the approval of Justin Sun, a high-ranking advisor to the exchange and the founder of Tron (TRX). Crypto exchange FTX went bankrupt last year. Its executives were accused of defrauding investors and mishandling billions of dollars worth of user funds. According to crypto creditor and FUD issuer DebtDAO, the tokens will debut with a…

FTX Money Backed US Lawmakers With Future of Crypto in Their Hands

Nearly two-thirds of the members of the Senate Agriculture committee took FTX cash, including Sen. Debbie Stabenow (D-Mich.), the panel’s chairwoman, and its ranking Republican, Sen. John Boozeman (R-Ark.). Last year that panel was in the crypto industry’s spotlight because the two lawmakers pushed a bill to establish rules of the road for digital assets in the U.S., including giving the CFTC authority over trading of non-security tokens such as bitcoin. Source

Independent FTX Examiner Could Cost Crypto Exchange $100M, Court Told

“We do not have enough money to pay back all of our creditors and the U.S. Trustee … says that we should spend tens or even hundreds of millions of dollars” on a report, said James Bromley of FTX’s law firm, Sullivan & Cromwell. There is “no evidence that any of those professionals or this examiner to be appointed would be any more independent” than the company’s own staff and hired experts, Bromley added. FTX’s new chief executive, John J Ray III, had previously cited $90 million to $100 million…

FTX CEO testifies on ‘pure hell’ post-bankruptcy days at exchange

John Ray, who took over as CEO of crypto exchange FTX, has described some of the chaotic experiences at the firm following the company declaring bankruptcy. In testimony for FTX’s case in the United States Bankruptcy Court for the District of Delaware on Feb. 6, Ray said he and other professionals had “carefully” been conducting an investigation into FTX’s activities, due to the company having no physical office. The FTX CEO seemed to be pushing back against a motion to assign an independent examiner to the bankruptcy case, claiming that…