Tag: FTX

Is Bitcoin the only crypto that will survive FTX?

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The downfall of FTX and a number of other CeFi platforms in 2022 has reinforced a Bitcoin maximalist narrative, according to which most of the crypto ecosystem will eventually collapse due to its centralization.   Jeff Booth, Bitcoin proponent and author of “The Price of Tomorrow”, believes centralized crypto platforms such as FTX and Celsius have ended up replicating the traditional financial system with all its inherent flaws. “All of crypto is trying to rebuild a financial system that we already have based on manipulation and centralization,” said Booth, in an…

US Trustee Plans to Appoint an Examiner to FTX Case, While SBF Describes Strange Margin Trading Practices – Bitcoin News

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On Dec. 1, 2022, an attorney for the U.S. Trustee submitted a written letter to Delaware bankruptcy court officials that seeks to establish an independent examiner to investigate the FTX Chapter 11 bankruptcy proceedings. The U.S. Trustee explained in the letter that FTX’s collapse was comparable to complex bankruptcy cases like Lehman’s, Washington Mutual Bank’s, and New Century Financial’s. Moreover, while the U.S. Trustee submitted a filing that requested a third-party examiner, former FTX CEO Sam Bankman-Fried has continued to appear in numerous interviews with the media. U.S. Trustee: An…

Sam Bankman-Fried Claims He Did Not Devote Time to Risk Management at FTX

Embattled ex-FTX CEO Sam Bankman-Fried reflects on his ‘costly’ apathy for risk management during his time with the exchange.  Sam Bankman-Fried recently stated that he did not devote time to risk management practices while helming fallen crypto exchange FTX. In a recent interview filmed in the Bahamas, where Bankman-Fried remains holed up, the disgraced former CEO reflects on what could have been. According to Sam Bankman-Fried, if he had devoted an hour a day to risk management, FTX might still be functional today. Instead, on claims that he was an expert on…

FTX Japan Plans to Restart Local Customer Withdrawals

“Development work for this plan has already started and our engineering teams are working to allow FTX Japan users to withdraw their funds. As part of the plan, we are incorporating controls, security audit, reconciliations, and reviews to put in place a robust and secure process,” the notice said. Source

Sam Bankman-Fried Was in Close Talks with CFTC for 14 Months before FTX Collapse

The CFTC chair accepted that he had conducted nearly 12 meetings with SBF in the last 14 months before bankruptcy. SBF was looking to secure a clearinghouse license for FTX subsidiary LedgerX. It’s not a new story that FTX‘s disgraced founder Sam Bankman-Fried was in close contact with US lawmakers. However, the latest report suggests that Bankman-Fried also met with some high-level officials at the US Commodities and Futures Trading Commission (CFTC) more than 10 times over the last 14 months. Bankman-Fried vs CFTC One of his meetings was also…

Crypto Billionaire Mike Novogratz Wants FTX Founder to Be Jailed

Mike Novogratz said that the FTX founder was “delusional” about his culpability in the crypto exchange’s collapse. He further added that crypto firms should never lend out customers’ funds without taking their permission. Sam Bankman-Fried, the disgraced founder of bankrupt crypto exchange FTX, has been making public appearances and giving interviews. But crypto billionaire Mike Novogratz, also the founder of Galaxy Digital, strongly believes that the FTX founder should be in jail. Novogratz’s comments came during his recent interview with CNBC on Thursday, December 1, wherein he called the FTX…

FTX was the ‘fastest’ corporate failure in American history, calls for probe

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The United States Trustee handling FTX’s bankruptcy proceedings has referred to the now-defunct exchange as the “fastest big corporate failure in American history,” and is calling for an independent probe to look into its downfall.  In a Dec. 1 motion, U.S. Trustee Andrew Vara noted that over the course of eight days in November, debtors “suffered a virtually unprecedented decline in value” from a market high of $32 billion earlier in the year to a several liquidity crisis after a “proverbial ‘run on the bank.’” “The result is what is likely…

FTX Japan drafts plan to return client funds

The Japanese subsidiary of the now-defunct FTX crypto exchange has come out with a roadmap to resume withdrawals, after confirming that its customers’ assets are not part of FTX’s bankruptcy proceedings. The firm provided an update on Dec. 1, stating it has been able to confirm that its customers’ assets “should not” be part of FTX Japan’s estate due to Japanese regulations which mandate that crypto exchanges must separate client funds from their own assets. This was according to Landis Rath & Cobb LLP, the law firm representing FTX Group…