ftx bankruptcy – pressnews

Sam Bankman-Fried takes stand, says he made ‘small mistakes’

28Oct

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Sam Bankman-Fried takes stand, says he made ‘small mistakes’

[ad_1] Sam Bankman-Fried, founder of the collapsed cryptocurrency exchange FTX, took the stand at his trial on Friday and said that while he may have made mistakes he did not commit fraud or steal from customers. "I made a number of small mistakes and a number of large mistakes," the onetime crypto wunderkind said in reply to a question from one of his lawyers, Mark Cohen. "By far the biggest mistake was that we didn't have a team dedicated to risk management," Bankman-Fried said. We are now on WhatsApp. Click to join. His high-stakes decision to testify on his own behalf, which opens him up to cross-examination, came after three weeks of devastating testimony against the 31-year-old accused of stealing billions of dollars from clients. Bankman-Fried, who was wearing a grey suit and t...

7Mar

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How The FTX Collapse Shook The Bahamas

[ad_1] It's been three months since one of the most influential crypto exchanges collapsed into bankruptcy. FTX's demise brought with it a wave of financial uncertainty and distress across the crypto industry. But it also had an effect on the small island nation where the crypto exchange had established its headquarters: The Bahamas. This is not the Caribbean's first financial crisis. History suggests it won't be the last. But it is perhaps one of the highest profile losses, and potentially the most damaging. It comes as islands across the region try to diversify away from tourism revenue. The Bahamas had high hopes that an ambitious financial sector would achieve that. But crypto was a big part of the game plan, and now that vision is crumbling. Can the Bahamas fill the gap left ...

FTX says $415 million in crypto was hacked

19Jan

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FTX says $415 million in crypto was hacked

[ad_1] Some $323 million in crypto had been hacked from FTX's international exchange and $90 million had been hacked from its U.S. exchange since it filed for bankruptcy on November 11. Bankrupt crypto exchange FTX said in a report to creditors on Tuesday that about $415 million in cryptocurrency had been stolen as a result of hacks. Some $323 million in crypto had been hacked from FTX's international exchange and $90 million had been hacked from its U.S. exchange since it filed for bankruptcy on Nov. 11, CEO John Ray said in a separate statement on Tuesday. FTX founder Sam Bankman-Fried has been accused of stealing billions of dollars from FTX customers to pay debts incurred by his crypto-focused hedge fund, Alameda Research. Bankman-Fried has pleaded not guilty to fra...

4Jan

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Beware the Dangers of Crypto Regulation

[ad_1] With so many unknowns and the risks of contagion mostly contained, the best policy right now is caution. The collapse of FTX and the charges against Sam Bankman-Fried have brought many renewed calls for crypto regulation, from both commentators and legislators. That is precisely why this is a time for caution. No matter how strong the temptation, we should not overregulate. Begin with two central facts. First, there are numerous ways for small and large investors to lose their money, including by investing in risky equities. Regulating crypto won't end that danger. Second, despite being one of the largest financial frauds in history, FTX has not created systemic financial risk, which should be the main concern of regulators. And market forces already have made the risk from ...

Animoca Founder Says Crypto ‘Cheering’ Sam Bankman-Fried’s Arrest

15Dec

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Animoca Founder Says Crypto ‘Cheering’ Sam Bankman-Fried’s Arrest

[ad_1] A co-founder of crypto investor and game developer Animoca Brands Corp. said many in the digital-asset industry welcome the arrest of Sam Bankman-Fried because it helps to separate the fallen tycoon from the sector. A co-founder of crypto investor and game developer Animoca Brands Corp. said many in the digital-asset industry welcome the arrest of Sam Bankman-Fried because it helps to separate the fallen tycoon from the sector. “The reputational impact for crypto has definitely been affected because Sam was such a prolific figure,” Yat Siu, also chairman of Animoca Brands, said on Bloomberg Television on Wednesday. “But I think today, especially the news of his arrest, many people in our industry are actually cheering it on.” The US has charged Bankman-Fried with wire frau...

FTX Lesson No. 1: Don’t Fall Asleep in Accounting Class

14Dec

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FTX Lesson No. 1: Don’t Fall Asleep in Accounting Class

[ad_1] Sam Bankman-Fried is a reminder that under the heading, 'Boring But Important,' basic bookkeeping tops the list. Investigations are underway into the stunning collapse of FTX and its sister company, Alameda Research. FTX-related case studies will be taught in business schools for years to come. Out of the tangled mess, one lesson already has become clear: The lack of a serious accounting system or even basic internal controls contributed to the company's downfall. As professors of accounting, it's a continual challenge convincing students that our courses are important when they're tempted by sexier-sounding classes with titles that include words like “innovation,” “artificial intelligence” or “fintech.” “Introduction to Financial Accounting” doesn't pique the interest of th...

Binance, Tether to Solana, After FTX Fall, These Crypto Entities Are Grabbing the Spotlight

14Dec

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Binance, Tether to Solana, After FTX Fall, These Crypto Entities Are Grabbing the Spotlight

[ad_1] Sam Bankman-Fried’s arrest in the Bahamas pending a possible extradition to the US opens a fresh chapter in efforts to untangle whether his crypto empire was built using fraudulent methods. Sam Bankman-Fried's arrest in the Bahamas pending a possible extradition to the US opens a fresh chapter in efforts to untangle whether his crypto empire was built using fraudulent methods.Regardless of the outcome, the demise of his digital-asset exchange FTX continues to shake the wider crypto market's foundations. Skittish investors are pulling money out of rival exchanges, fearful of having their assets stuck should any of those venues collapse. At least one major crypto firm has filed for bankruptcy in the wake of FTX's unraveling, while two others were forced to suspend some withdrawal...

A Hedge Fund Hit by FTX Collapse Defaults on $36 Million of Debt

6Dec

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A Hedge Fund Hit by FTX Collapse Defaults on $36 Million of Debt

[ad_1] Contagion from the collapse of crypto exchange FTX is spreading into the world of decentralized finance. Contagion from the collapse of crypto exchange FTX is spreading into the world of decentralized finance, as lending protocol Maple Finance severed ties with a hedge fund that defaulted on almost $36 million worth of crypto loans on its platform.Sydney-based Orthogonal Trading said in a tweet on Tuesday that it defaulted on a $10 million loan after being “severely impacted by the collapse of FTX and associated trading activities,” without giving further details. M11 Credit, which runs a lending pool on Maple, on Monday said Orthogonal Trading had informed it on Dec. 3 about its inability to repay. Orthogonal Trading had taken out $31 million of loans in the USDC stablecoin an...

Former FTX US Head Brett Harrison Is Raising Money for Crypto Startup

3Dec

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Former FTX US Head Brett Harrison Is Raising Money for Crypto Startup

[ad_1] Former FTX US President Brett Harrison has been seeking funding to create a crypto software company for more than a month and before Sam Bankman-Fried’s FTX filed for bankruptcy. Former FTX US President Brett Harrison is raising money for a crypto startup, according to people familiar with the matter. Harrison has been seeking funding to create a crypto software company for more than a month and before Sam Bankman-Fried's FTX filed for bankruptcy, according to the people, who spoke on the condition of anonymity because the discussions were private. Various valuations were discussed over the course of weeks, and some people familiar with the matter said they were told the fund raising target could be as high as $10 million for a $100 million valuation. Harrison declined to ...

‘Too Much Speculation’ Is Hurting Crypto, BitGo’s Belshe Says

2Dec

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‘Too Much Speculation’ Is Hurting Crypto, BitGo’s Belshe Says

[ad_1] There’s a lot going on in crypto following the collapse of the FTX exchange. But traders’ focus has turned to the price disparity between Bitcoin and a derivative of the largest cryptocurrency. There's a lot going on in crypto following the collapse of the FTX exchange. But traders' focus has in recent days turned to the price disparity between Bitcoin and a derivative of the largest cryptocurrency. Wrapped Bitcoin, or wBTC, is backed 1-to-1 by the token, which is held in custody by the digital-trust firm BitGo. The offshoot normally trades on par with the original token but had over the past few days traded at a discount to Bitcoin. Mike Belshe, chief executive officer of BitGo, spoke with Bloomberg News on Tuesday about wrapped Bitcoin, the state of crypto markets and mo...