Tag: FTX

BlockFi CEO ignored risks from FTX and Alameda exposure, contributing to collapse: court filing

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Zac Prince, the CEO of bankrupt cryptocurrency lending firm BlockFi, allegedly disregarded recommendations from the company’s risk management team over lending assets to Alameda Research.  According to a July 14 filing with United States Bankruptcy Court for the District of New Jersey by the unsecured creditors’ committee, BlockFi’s risk management team reported on the “high risks” associated with lending assets to Alameda. Prince allegedly dismissed concerns from the team on BlockFi lending Alameda $217 million by August 2021. The team suggested there could be risks should the FTX Tokens (FTT) used to…

3AC co-founders’ OPNX exchange onboards FTX, Celsius bankruptcy claims

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OPNX, an exchange dedicated to the trading of bankruptcy claims against fallen crypto firms, has listed FTX and Celsius claims. According to the July 14 announcement, FTX claims specifically can be immediately onboarded and converted into collateral in the form of OPNX’s native reborn OX (reOX) tokens or oUSD, its credit currency. Users can then trade crypto futures using reOX as collateral. The claims are tokenized in partnership with Heimdall, which also handles onboarding and user verification. Developers wrote: “Claims will initially be converted into reOX tokens at a 100%…

FTX spent $400 million on the acquisition of its European branch

According to the legal team of the FTX investors, trying to return their funds through court, a failed crypto exchange spent “nearly $400 million” to acquire Digital Assets DA AG (“DAAG”). Later the Swiss company became known as FTX Europe. Now the plaintiffs are eager to be refunded the money that was spent on it by Sam Bankman-Fried and his associates.  The complaint for avoidance and recovery of transfers was filed to the United States bankruptcy court in the district of Delaware on July 12. The plaintiffs are stating that…

FTX customer claims portal remains offline hours after launch

The customer claims portal for insolvent cryptocurrency exchange, FTX, went offline shortly after its debut on July 10, leaving customers unable to make claims online.  Kroll, the claims agent for FTX, said they are working on resolving the glitch for victims to submit claims. In the meantime, affected customers can still file claims by submitting a digital form on Kroll’s website or by mail. As of writing on July 12, the portal is still inaccessible. Former FTX boss facing 24 fraud charges FTX’s bankruptcy case is being handled in Delaware, and ongoing…

FTX claims portal becomes unavailable shortly after going live

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Bankrupt cryptocurrency exchange FTX launched a customer claims portal which stayed live for roughly an hour before going offline for unknown reasons. Many social media users reported the FTX claims portal went live on July 11, offering customers of the failed crypto exchange who had accounts with FTX, FTX.US, Blockfolio, FTX EU, FTX Japan, and Liquid the opportunity to access their account information and submit claims for consideration in the firm’s restructuring proceedings. According to FTX’s Kroll page, users had until Sept. 29 to submit claims. Customer Claims portal is…

US authorities are investigating former FTX exec for potential campaign finance violations: Report

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Prosecutors in New York are reportedly looking into former FTX Digital Markets co-CEO Ryan Salame for potential violations of campaign finance law in the United States. According to a July 11 report from The New York Times, Salame and his girlfriend Michelle Bond — a Republican candidate who ran to represent New York’s 1st congressional district in 2022 — may have exceeded the federal limits on contributions during her campaign. Authorities are reportedly investigating financial ties between Salame and Bond dealing with her congressional campaign, which did not move beyond…

Crypto Can’t Be Used as Money Due to ‘Inherent Flaws,’ the Bank for International Settlements (BIS) Said After the FTX and Terra Collapses

Despite the millions of retail and institutional investors getting involved in the growing sector, “crypto has so far failed to harness innovation to the benefit of society,” said the report, prepared for a meeting of G20 finance ministers and central bank governors due to take place in Gandhinagar, India this weekend. Source