Bitcoin (BTC) is the best financial revolution of the fashionable age. By merely shopping for and holding Bitcoin, residents are staging a peaceable protest in opposition to the indentured servitude introduced on by fiat economics. Within the course of, they’ve initiated one of many best wealth transfers of all time — a course of that can take a long time to play out totally.
Bitcoin has additionally galvanized a trillion-dollar cryptocurrency and blockchain trade — a double-edged sword that’s each inspiring and scary. Sam Bankman-Fried, the disgraced founding father of the now-bankrupt FTX Group, is a case examine of what can go fallacious when pariahs are accountable for main firms. Sam Bankman-Fried, or SBF as he’s usually referred to as, has “sincerely apologized” for defrauding buyers, conning auditors and utilizing buyer funds to prop up FTX’s sister hedge fund. We haven’t even untangled the political internet that SBF finds himself in — one that will embody Gary Gensler of the USA Securities and Alternate Fee.
This week’s Crypto Biz continues to unpack the implosion of FTX, which, as of 10 days in the past, was the second-largest digital asset change on this planet.
Sam Bankman-Fried is ‘underneath supervision’ in Bahamas, trying to flee to Dubai
After denying rumors that he fled to Argentina over the weekend, SBF was stated to be underneath supervision within the Bahamas alongside FTX executives Gary Wang and Nishad Singh. A supply conversant in the matter knowledgeable Cointelegraph that it could be tough for the trio to depart the nation on their very own accord. The identical supply, who selected to stay nameless, additionally claimed that Alameda Analysis CEO Caroline Ellison was making an attempt to flee to Dubai to keep away from extradition to the USA. Regardless of making an attempt to convey a modest way of life to the general public, SBF lives in a $40 million penthouse within the Bahamas.
FTX fallout continues: BlockFi reportedly mulling chapter, SALT pauses withdrawals and deposits
The fallout from the FTX debacle was each instant and devastating as Bitcoin lender BlockFi halted platform exercise, resulting in credible rumors that it was on the verge of chapter. In an official replace to shoppers on Nov. 14, BlockFi stated it had “vital publicity” to FTX and its affiliated corporations. In the meantime, crypto lending firm SALT additionally disclosed this week that it was halting platform exercise, together with pausing all deposits and withdrawals, because of the FTX contagion. As Cointelegraph reported, SALT CEO Shawn Owen has denied allegations that his firm was “going bust.” However, issues don’t look good for SALT customers in the meanwhile.
Salt lending goes bust.
For those who at the moment have cash on a lending platform or “earn” platform, GET IT OFF. pic.twitter.com/eOIGG8yTrO
— Coffeezilla (@coffeebreak_YT) November 15, 2022
Genesis International halts withdrawals citing ‘unprecedented market turmoil’
On Nov. 16, the FTX contagion spilled over into the institutional markets as liquidity supplier Genesis International introduced a short lived suspension of withdrawals attributable to “unprecedented market turmoil.” Genesis International isn’t a family identify in crypto, however it does present liquidity to Grayscale’s Bitcoin Funding Belief, which at the moment has over $20 billion in web belongings. Genesis managed to climate the Three Arrows Capital collapse earlier this 12 months, having since filed a $1.2 billion declare in opposition to the failed hedge fund. It’s unclear whether or not Genesis will survive the FTX meltdown, because it had $175 million value of funds caught on the change.
FTX chapter freezes tens of millions value of crypto firm funds
Along with BlockFi, SALT and Genesis International, a number of corporations had been left holding the bag on FTX’s chapter. Hedge fund Galois Capital is stated to have as a lot as $50 million value of crypto caught on FTX. New Huo Expertise, which owns the Hong Kong crypto change Hbit, has been unable to withdraw $18.1 million of digital belongings from FTX. Nestcoin, a Nigerian Web3 startup, has reported comparable issues however didn’t disclose how a lot cash was locked up on SBF’s change. FTX touched each nook of the cryptocurrency market, leaving tens of millions of individuals uncovered. Extra particulars will come to mild within the coming weeks and months.
An replace shared with our buyers earlier in the present day on the FTX incident and its influence on @Nestcoin. pic.twitter.com/0Mjo4SYF7R
— YB (25,25) ⏳ (@YeleBademosi) November 14, 2022
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