Tag: FTX crypto

How The FTX Collapse Shook The Bahamas
7Mar By adminNo Comments
Technology

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 ...
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The FTX Crypto Victim Card Can Be Hard to Play
16Dec By adminNo Comments
Technology

The FTX Crypto Victim Card Can Be Hard to Play

[ad_1] Blaming Sam Bankman-Fried is convenient cover for some firms that should have known better. The crypto industry has suffered many booms and busts in its brief lifespan, but nothing like this. Sam Bankman-Fried, currently sitting in a Bahamian jail, has been accused by the US securities regulator of orchestrating a years-long fraud that diverted billions in customer funds from opaque and offshore exchange FTX to a now-bankrupt trading empire. The outrage among FTX's roughly 1 million creditors is understandable, as is the skittishness of investors yanking money from other crypto platforms like Binance. Bankman-Fried has tried to present himself as a naive 30-year-old who got out over his skis, but each day brings new reports of elaborate internal tools used to support the pro...
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FTX Kept Your Crypto in a Crypt Not a Vault
20Nov By adminNo Comments
Technology

FTX Kept Your Crypto in a Crypt Not a Vault

[ad_1] The rise and fall of Sam Bankman-Fried is a tale of the way we live now — tweeting, not reading. Sam Bankman-Fried doesn't read books. As he explained in a profile on Sequoia Capital's website (which will be an assigned text in journalism courses for the rest of time), “I would never read a book.” “I'm very skeptical of books,” he said. “I don't want to say no book is ever worth reading, but I actually do believe something pretty close to that.”This error is not irremediable, because Bankman-Fried, founder of the now-defunct crypto exchange FTX, is likely soon to have a lot of time for reading.   I, by contrast, as the author of many books, am very skeptical of Sam Bankman-Fried. As I noted on May 1: “There is a great deal of loose talk among the crypto bros.” How about this fr...
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FTX Offers a Master Class in Crypto’s Flaws
17Nov By adminNo Comments
Technology

FTX Offers a Master Class in Crypto’s Flaws

[ad_1] Sam Bankman-Fried’s spectacular flameout illustrates just about everything that’s wrong with crypto markets. In one sense, investors and regulators should be grateful to Sam Bankman-Fried, the erstwhile head of the FTX cryptocurrency exchange. The spectacular flameout of his virtual empire has evolved from a cautionary tale into a master class on everything that's wrong with crypto markets.As customers and creditors sort through what remains of the failed exchange's holdings, and as the repercussions spread throughout the crypto realm, here are four lessons that stand out: Beware of assets denominated in crypto. FTX was vulnerable not only because it was leveraged, but also because its assets weren't really assets. Judging from the balance sheet that the company reportedly sent...
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Sam Bankman-Fried Tells His Side of the Story of FTX Collapse in Tweets
17Nov By adminNo Comments
Technology

Sam Bankman-Fried Tells His Side of the Story of FTX Collapse in Tweets

[ad_1] Confronted by a crypto crisis he helped spark, former FTX.com Chief Executive Officer Sam Bankman-Fried is tweeting through it. Confronted by a crypto crisis he helped spark, former FTX.com Chief Executive Officer Sam Bankman-Fried is tweeting through it.On Wednesday, he added a further 18 tweets to a meandering thread he started at the beginning of the week. The posts, published at sporadic intervals, have combined apologies for his failings with his perspective on what went wrong at the companies he founded and ran.  They add to a previous series of cryptic posts that eventually spelled out the message “What HAPPENED,” followed by a hint that there were revelations to come With the wisdom of hindsight, he stated how he would do his best to save customers' cash, mused on how ...
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FTX Is ‘Lehman Shock,’ bitFlyer’s Co-Founder Kano Says
16Nov By adminNo Comments
Technology

FTX Is ‘Lehman Shock,’ bitFlyer’s Co-Founder Kano Says

[ad_1] The meltdown of Sam Bankman-Fried’s digital assets empire FTX is a “Lehman Shock” to the industry, said the co-founder of bitFlyer Inc. The meltdown of Sam Bankman-Fried's digital assets empire FTX is a “Lehman Shock” to the industry, potentially causing more crypto firms to fail, said the co-founder of major Japanese crypto exchange bitFlyer Inc.“It's a huge impact,” Yuzo Kano said in an interview with Shery Ahn and Haidi Stroud-Watts on Bloomberg Television at the New Economy Forum, adding that the turmoil may push other firms into bankruptcy. “It may actually continue a little bit.” The fall of Bahamas-based FTX, once perceived as among the most dependable names in the sector, has sparked fresh concerns over the loosely regulated nature of crypto companies and what guardrail...
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FTX’s Balance Sheet, Hack Paint Dim Picture for User Recovery
14Nov By adminNo Comments
Technology

FTX’s Balance Sheet, Hack Paint Dim Picture for User Recovery

[ad_1] A swift plunge in value of FTX’s key crypto assets suggests that customers of the once popular exchange face a slim chance of recovering much of their deposits. A swift plunge in value of FTX's key crypto assets, along with unauthorized withdrawals of funds after it filed for bankruptcy, suggests that customers of the once popular exchange face a slim chance of recovering much of their deposits. A breakdown of the balance sheet of Sam Bankman-Fried's exchange shared with investors a day before its bankruptcy filing shows that it had nearly $9 billion in liabilities and $900 million in liquid assets, $5.5 billion in “less liquid” assets, and $3.2 billion in “illiquid” assets, according to sources familiar with the matter who viewed a limited version of information. Most of the b...
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Solana Leads Crypto Slump With FTX’s Serum Project In Distress
14Nov By adminNo Comments
Technology

Solana Leads Crypto Slump With FTX’s Serum Project In Distress

[ad_1] A four-day slump for crypto altcoin Solana deepened, while developers spun off one of the blockchain network’s most prominent and FTX-affiliated projects. A four-day slump for crypto altcoin Solana deepened, while developers spun off one of the blockchain network's most prominent and FTX-affiliated projects. Solana fell as much as 11% to $12.11 on Monday in Asia's morning. Crypto bellwethers Bitcoin and Ether also slumped, with Bitcoin at one point dropping below $16,000. Other altcoins, including Polkadot and Avalanche, typically more volatile than larger cryptocurrencies due to lower liquidity levels, fell as well.  The crypto market has lost about $200 billion in value in the past week itself, as the collapse of FTX CEO Sam Bankman-Fried's crypto empire took its toll on inve...
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EXPLAINER: What’s happening at bankrupt crypto exchange FTX?
14Nov By adminNo Comments
Technology

EXPLAINER: What’s happening at bankrupt crypto exchange FTX?

[ad_1] The imploding cryptocurrency trading firm FTX is now short billions of dollars after experiencing the crypto equivalent of a bank run. The imploding cryptocurrency trading firm FTX is now short billions of dollars after experiencing the crypto equivalent of a bank run.The exchange, formerly one of the world's largest, sought bankruptcy protection last week, and its CEO and founder resigned. Hours later, the trading firm said there had been “unauthorised access” and that funds had disappeared. Analysts say hundreds of millions of dollars may have vanished. The unravelling of the once-giant exchange is sending shockwaves through the industry. Here's a look at the company's collapse so far:WHY DID FTX GO BANKRUPT?Customers fled the exchange over fears about whether FTX had suffici...
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FTX Warns of Bankruptcy Without Rescue for $8 Billion Shortfall
10Nov By adminNo Comments
Technology

FTX Warns of Bankruptcy Without Rescue for $8 Billion Shortfall

[ad_1] Sam Bankman-Fried told FTX.com investors Wednesday that without a cash injection the company would need to file for bankruptcy. Sam Bankman-Fried told FTX.com investors Wednesday that without a cash injection the company would need to file for bankruptcy, according to a person with direct knowledge of the matter.On a call before Binance pulled an about-face and bailed on its takeover offer, Bankman-Fried informed investors his crypto exchange faced a shortfall of up to $8 billion and needed $4 billion to remain solvent, the person said, asking not to be named discussing private talks. FTX is attempting to raise rescue financing in the form of debt, equity, or a combination of the two, the person said. “I f---ed up,” Bankman-Fried told investors on the call, according to people ...
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