Tag: FTX

Learn from FTX and stop investing in speculation

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The FTX collapse marks more than just the failure of another crypto exchange. It signals the time has come for the industry to grow up and embrace value. The value schism is here.  FTX was the world’s second-largest crypto exchange. Now, it is a meme for the death rattle of absurd amounts of money being poured into refurbished centralized business models whitewashed in faux decentralization. As legendary investor Warren Buffet famously said, “Only when the tide goes out do you discover who’s been swimming naked.” It seems there were more…

Sam Bankman-Fried Called to FTX Hearing by Texas Securities Regulator

FTX Capital Markets, LLC, is registered as a dealer with the board, and “Texans were able to buy and sell publicly traded stock through the firm,” according to the hearing notice that was dated Nov. 22. The state regulator is seeking a cease-and-desist order for FTX to halt securities fraud in the state, to return money to affected investors and to target Bankman-Fried with fines. Source

US lawmaker questions major crypto exchanges on consumer protection amid FTX collapse

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Ron Wyden, chair for the United States Senate Finance Committee, has requested information from six crypto firms on consumer protection following FTX’s liquidity issues and bankruptcy. In separate letters dated on Nov. 28, Wyden targeted Binance, Coinbase, Bitfinex, Gemini, Kraken and KuCoin, requesting information on what protections the exchanges had in place if a failure like the one that happened at FTX occurred. The senator said that crypto users who had funds with FTX had “no such protections” like those at banks or registered brokers under the Federal Deposit Insurance…

Collapsed Crypto Exchange FTX Resumes Normal Salary Payments to Employees Worldwide

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Beleaguered crypto exchange FTX says most of its subsidiaries are resuming salary and benefit payments to employees after being interrupted during the company’s insolvency crisis. In a statement, FTX’s new CEO John J. Ray III says that ordinary course payment will also resume for some of the firm’s non-US contractors and service providers to preserve business operations. Ray says the company acknowledges the inconvenience caused by the interruptions in payments, and thanks employees and partners for their support.  “With the Court’s approval of our First Day motions and the work…

FTX hacker reportedly transfers a portion of stolen funds to OKX after using Bitcoin mixer

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Hackers who drained FTX and FTX USA of over $450 million worth of assets just moments after the doomed crypto exchange filed for bankruptcy on Nov. 11, continue to move assets around in an attempt to launder the money.  A crypto analyst who goes by ZachXBT on Twitter alleged that the FTX hackers have transferred a portion of the stolen funds to the OKX exchange, after using the Bitcoin mixer ChipMixer. The analyst reported that at least 225 BTC — worth $4.1 million USD — has been sent to OKX…

Ukraine-based blockchain firm blasts ‘fake news’ for crypto donation rumors amid FTX collapse

Everstake, a blockchain firm that partnered with the Ukrainian government to launch a donation website amid the country’s war with Russia, has pushed back against online rumors and conspiracy theories that the platform was used for politically motivated money laundering.  Ukrainian government officials partnered with Everstake, Kuna and the now infamous crypto exchange FTX to launch Aid for Ukraine in March following the Russian military’s invasion. According to the platform, crypto users and Ukraine supporters sent roughly $60 million in crypto and fiat aimed at supporting Ukraine’s armed forces and…

Binance, Coinbase Among Crypto Firms Questioned by US Senator After FTX Mess

“As Congress considers much-needed regulations for the crypto industry, I will focus on the clear need for consumer protections along the lines of the assurances that have long existed for customers of banks, credit unions and securities brokers,” Wyden said in the letters. “If these protections had been in place before the failure of FTX, far fewer retail investors would be facing precipitous financial harm today.” Source

Serum exchange rendered ‘defunct’ following the collapse of Alameda and FTX

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The Solana-based decentralized exchange (DEX) has notified its community that the collapse of its backers — Alameda and FTX — has rendered its program “defunct”.  The team behind the project shared that “there is hope”, in spite of its ongoing challenges, because of the community option available to “fork” Serum.  What’s next for @ProjectSerum With the collapse of Alameda and FTX, the Serum program on mainnet became defunct. As upgrade authority is held by FTX, security is in jeopardy, leading to protocols like @JupiterExchange and @RaydiumProtocol moving away from Serum.…