Tag: FTX

Hybrid DEX, INNODEX, emerges amid FTX, Silvergate liquidity crises

Silicon Valley Bank (SVB), representing the United States information technology hub, Silicon Valley, went bankrupt due to a bank run, massive deposit withdrawals, in under 14 hours.  SVB’s bankruptcy is the second-largest in history after Washington Mutual went under during the Global Financial Crisis (GFC) in 2008. Silvergate Capital, one of the top 10 cryptocurrency banks that announced voluntary liquidation on Feb. 8, is in the same situation as SVB. Silvergate said it suffered significant losses and sold billions of dollars in assets to address withdrawals a day after the…

Silicon Valley Bank down, USDC depegged, FTX billed $34M in Jan

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Top Stories This Week Silicon Valley Bank shut down by California regulator, holding over $5 billion for prominent crypto VCs Silicon Valley Bank (SVB) was shut down by California’s financial watchdog on March 10 after announcing a significant sale of assets and stocks aimed at raising additional capital. The California watchdog appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver to protect insured deposits. However, the FDIC only insures up to $250,000 per depositor, per institution and per ownership category. The bank held over $5 billion in funds from…

Judge mulls removing Shaq and Naomi Osaka from FTX lawsuits

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A federal judge in Florida, United States, is considering dismissing NBA superstar Shaquille O’Neal and tennis athlete Naomi Osaka from the FTX lawsuit, pointing out that it’s unclear whether the two have been served.  In a paperless order, U.S. District Judge K. Michael Moore reportedly told the plaintiffs to provide cause on why O’Neal and Osaka shouldn’t be dismissed from the suit. According to Moore, it’s unclear whether the two sports stars have been served. The judge gave the FTX customers until December to show cause. The show cause order…

Investors might have avoided FTX if the SEC had addressed Bitcoin ETFs, says BitGo CEO

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The collapse of crypto exchange FTX and other bearish events in the space were at the center of discussions among lawmakers and witnesses at the inaugural hearing of the United States House Committee on Financial Services’ Subcommittee on Digital Assets, Financial Technology and Inclusion. Addressing lawmakers at the March 9 hearing, BitGo co-founder and CEO Mike Belshe criticized the U.S. Securities and Exchange Commission, or SEC, for enforcement actions against crypto firms “trying to do it right” — i.e. communicating with regulators and pursuing a path to operate in the…

FTX Proposes $4M Bonus Program as It Seeks to Retain Staff

Bonuses between 17% and 94% will be in the best interest of the FTX group as it seeks to wind up affairs, the Tuesday document said. The overall package is capped at $4,027,204 and targets staff with key skills and knowledge, including programming languages such as Python, Rust and Flutter. No bonuses will be paid to directors or officers of the company, to founder Sam Bankman-Fried and his family, or to any staff believed to be engaged in wrongdoing, the document said. Source

FTX Reaches $45M Deal to Sell Interest in Sequoia to Abu Dhabi’s Investment Arm

CryptoX – Cryptocurrency Analysis and News Portal The agreement could be closed as soon as March 31, though deals made by bankrupt companies are subject to close judicial scrutiny. The would-be buyer, Al Nawwar Investments RSC Limited, is ultimately owned by the government of Abu Dhabi, and already invests in Sequoia, the document said. Original Source The post FTX Reaches $45M Deal to Sell Interest in Sequoia to Abu Dhabi’s Investment Arm appeared first on CryptoX. CryptoX Portal

Judge refuses to consolidate class-action lawsuits against FTX

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A federal judge has refused to consolidate several proposed class-action lawsuits against the FTX exchange by investors. According to the judge, the exchange and its defendants have not yet been heard.  Excerpt from the order denying the motion to consolidate. Source: Law360 On March 8, United States District Judge Jacqueline Scott Corley laid down the order that denied plaintiffs a request to consolidate five proposed class-action lawsuits against the bankrupt crypto exchange. Despite no defendants opposing the motion, the judge pointed out that not all defendants had the opportunity to respond…

FTX counsel and advisors rake in $34M in January

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The law firms, investment banks and consulting companies working with FTX on its bankruptcy case billed the crypto exchange a combined $34.18 million in January, court documents reveal. FTX’s chief restructuring officer and new CEO, John J. Ray III, also received a hefty pay package, charging $1,300 an hour to a total of $305,000 in February according to a Mar. 6 filing. Fee breakdown of FTX CEO John J. Ray III over the month of February. Source: Kroll Separate court filings on Mar. 6 show United States law firms Sullivan…

FTX Sues Grayscale In a Move to Unlock $9B of Shareholder Value

In the lawsuit, FTX said that Grayscale has been charging exorbitant management fees. They noted that “Grayscale’s actions have resulted in the Trusts’ shares trading at approximately a 50% discount to Net Asset Value”. In the latest development bankrupt crypto exchange FTX is suing the world’s largest crypto asset manager Grayscale Investments. The lawsuit comes from FTX’s sister company Alameda Research to seek injunctive relief to FTX debtors to realize more than $250 million in asset value. As per the press release, Alameda Research has filed the lawsuit in the…