FTX crypto exchange

4Jan

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Technology

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 ...

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

14Dec

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Technology

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...

FTX’s Rapid Demise Stokes US Fight Over Who Will Regulate Crypto Exchanges

1Dec

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Technology

FTX’s Rapid Demise Stokes US Fight Over Who Will Regulate Crypto Exchanges

[ad_1] Rostin Behnam, chairman of the Commodity Futures Trading Commission, will testify at the first congressional oversight hearing on the spectacular implosion of crypto platform FTX. If one of the chief US financial watchdogs has his way, the collapse of Sam Bankman-Fried's FTX will shift into high gear a push to make his agency the main Bitcoin regulator and give it oversight of crypto exchanges.On Thursday, Rostin Behnam, chairman of the Commodity Futures Trading Commission, will testify at the first congressional oversight hearing on the spectacular implosion of crypto platform FTX. He's expected to tell members of the Senate Agriculture committee about the need to move forward with legislation to bring more of the industry onto his agency's turf. “Failure to act will leave con...

FTX shows need to regulate crypto before it gets big, says Bank of England

21Nov

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Technology

FTX shows need to regulate crypto before it gets big, says Bank of England

[ad_1] The implosion of cryptocurrency exchange FTX shows the need to bring the crypto world within the regulatory framework, Bank of England Deputy Governor Jon Cunliffe said. The implosion of cryptocurrency exchange FTX shows the need to bring the crypto world within the regulatory framework, Bank of England Deputy Governor Jon Cunliffe said on Monday.FTX, which has filed for U.S. bankruptcy court protection, has said it owes its 50 biggest creditors nearly $3.1 billion. "While the crypto world, as was demonstrated during last year's crypto winter and last week's FTX implosion is not at present large enough or interconnected enough with mainstream finance to threaten the stability of the financial system, its links with mainstream finance have been developing rapidly," Cunliffe said...

Will FTX-Like Unicorns Be the Next ‘Big Short’?

21Nov

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Technology

Will FTX-Like Unicorns Be the Next ‘Big Short’?

[ad_1] The crypto implosion shows the potential opportunity in betting against startups As his luck would have it, Michael Lewis has been trailing FTX founder Sam Bankman-Fried for the past few months. The author of The Big Short won't be short of material, but one thing he probably won't find is a big group of skeptics who successfully wagered on the demise of the $32 billion crypto exchange.For one, credulous crypto traders aren't natural fraud detectives: Even SBF rival Changpeng “CZ” Zhao, head of Binance Holdings Ltd., says he didn't short FTX's native token, FTT. He was instead left holding a big bag of near-worthless magic beans — along with hundreds of thousands of creditors. Moreover, because Bahamas-based FTX is private, it wasn't possible to short the company's shares, whic...

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

17Nov

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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 ...

Sam Bankman-Fried says filing for FTX bankruptcy was a mistake – Vox

17Nov

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Technology

Sam Bankman-Fried says filing for FTX bankruptcy was a mistake – Vox

[ad_1] The founder of collapsed crypto exchange FTX, Sam Bankman-Fried, said he regretted his decision to file for bankruptcy and, in an interview published by Vox, criticized regulators. The founder of collapsed crypto exchange FTX, Sam Bankman-Fried, said he regretted his decision to file for bankruptcy and, in an interview published by Vox, criticized regulators.Bankman-Fried said later on Twitter that the basis of the interview, an exchange of messages on the same platform, was not supposed to be public. The collapsed company, which filed for bankruptcy last week, has appointed five new independent directors at each of its main affiliated companies, including Alameda research. The five new directors and newly appointed Chief Executive John J. Ray are working to navigate through th...

Genesis meltdown: Inside a Once-$10 Billion Crypto Empire That’s Suddenly Cracking

17Nov

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Technology

Genesis meltdown: Inside a Once-$10 Billion Crypto Empire That’s Suddenly Cracking

[ad_1] Suspended withdrawals at cryptocurrency brokerage Genesis amid the widening crypto-market meltdown have cast an unwanted spotlight on Barry Silbert. Suspended withdrawals at cryptocurrency brokerage Genesis amid the widening crypto-market meltdown have cast an unwanted spotlight on Barry Silbert, the man at the helm of the Digital Currency Group empire.Silbert, who rarely does press interviews or speaks at the multitude of industry conferences, founded the Stamford, Connecticut-based crypto conglomerate DCG in 2015, according to the 46-year-old's LinkedIn profile. Last year, DCG's valuation reached $10 billion, after it sold $700 million of stock in a private sale led by SoftBank Group Corp. DCG had 66 employees at the start of November and holds more than 200 companies in its ...

After FTX collapse, cryptocurrency sector fights back

16Nov

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Technology

After FTX collapse, cryptocurrency sector fights back

[ad_1] The failure of the FTX platform has undermined investor confidence and threatened the young cryptocurrency sector, pushing its main players to mobilise to save it. The failure of the FTX platform has undermined investor confidence and threatened the young cryptocurrency sector, pushing its main players to mobilise to save it.The boss of the largest cryptocurrency exchange platform, Binance, did everything to reassure investors on Tuesday. "The projects that survive this difficult time will be much stronger later on," said Changpeng Zhao in response to questions from Internet users on Twitter. But for now, the market is shaken.Cryptocurrencies are valued at $870 billion, according to data from Coingecko, a site that lists more than 13,000 of them through 600 exchanges.Less than ...

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

14Nov

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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...