Tag: FTX

Humpy the Whale Cost Crypto Exchange FTX, Alameda Research $1 Billion in Losses, Lawsuit Alleges

According to the filing, in January 2021, Meerun began accumulating a position in BTMX, an illiquid token, eventually holding around half the supply, and helping drive up the price by over 10,000% in three months. He then allegedly exploited a flaw in FTX’s margin trading rules by using his stake as collateral to borrow tens of millions of dollars from the crypto exchange. Source

Here’s how Bitcoin reserves have changed since FTX collapse

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November marks two years since the FTX exchange went bankrupt. Since then, major crypto exchanges have seen their Bitcoin reserves grow. FTX’s inability to maintain sufficient reserves to meet user requests exposed severe flaws in its controls. It also highlighted the need for greater transparency and reliable reserve reporting among all crypto exchanges. Observers have grown keenly aware of the risks that exchanges face when they lack sufficient reserves. If they cannot meet withdrawal requests, it undermines user confidence and puts them at risk of losing funds. Maintaining adequate reserves…

Embattled FTX Co-Founder Gary Wang Is Building US Authorities a Tool To Track Illicit Activity on Crypto Exchanges

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FTX co-founder and former CTO Gary Wang continues to work with US authorities after giving his testimony at the trial of his college roommate and ex-colleague, Sam Bankman-Fried. Wang is among the FTX executives who were charged following the collapse of the FTX crypto exchange. He pleaded guilty to four criminal counts in December 2022. In a sentencing memorandum filed on November 6th, Wang’s lawyers ask the court to consider how their client cooperated with the government and extended assistance beyond the prosecution of Bankman-Fried. “Gary has made himself available to testify…

Former FTX CTO Gary Wang Asks Court for No Jail Time

“Unlike Singh, [Wang] did not engage in money laundering or participate in the straw donor scheme. Unlike Singh, [Wang] did not generate false revenue, code a fake insurance fund, try to persuade Bankman-Fried to fraudulently conceal his loans, or otherwise participate in affirmatively deceptive conduct. And, unlike Singh, [Wang] did not receive cash bonuses or spend FTX proceeds on real estate or other extravagant goods,” Wang’s lawyers wrote. “All of these factors combine to make him meaningfully less culpable than Singh.” Source

Prosecutors Defend Nishad Singh Saying He Provided ‘Substantial Assistance’ in FTX Investigation

“Singh also brought to the Government’s attention criminal conduct that the Government was not aware of and, in some cases, may have never discovered but for Singh’s cooperation. That included information about Bankman-Fried and [Ryan] Salame engaging in one of the largest-ever campaign finance schemes, and instances when Bankman-Fried manipulated FTX’s financials to make its revenue appear greater,” it stated. Source

Is Microstrategy’s Bitcoin Leverage a Bigger Threat Than FTX? Vinny Lingham Suggests It’s Possible

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Earlier this week, the well-known entrepreneur and investor Vinny Lingham, originally from South Africa but now based in the U.S., sparked a conversation on X by sharing his thoughts about Microstrategy. This company holds an enormous amount of bitcoin on its balance sheet. Lingham suggested that Microstrategy could potentially cause harm to bitcoin, possibly even […] Original

FTX cash repayment plan approved by bankruptcy judge

FTX’s bankruptcy plan to repay customers in cash plus interest was approved by a Delaware judge, despite a push for in-kind reimbursements. Judge John Dorsey of the U.S. District of Delaware Bankruptcy Court ruled in favor of FTX’s repayment, which could distribute up to $16 billion worth of recovered assets. Two years after the crypto exchange collapsed, 98% of creditors were approved to receive 118% of their claims in cash. While 94% of claimants supported the plan, Sunil Kavuri, a spokesperson for the largest FTX creditor community, argued for cryptocurrency…