35 Burst results for "FTX"
CoinDesk Podcast Network
Bitcoin Briefly Tops $28,000 for the First Time in 9 Months
"Wendy, can you start us off with some Bitcoin talk? Yes, we actually closed above $25,200 support and flipped it into resistance. And I'm excited. And the current crypto cap, including Bitcoin, is currently at about $1.13 trillion. So yay. And of course, open interest in Bitcoin futures hits yearly high of $12 billion, which makes sense because we have some positive price action. So the dollar value locked in the number of open Bitcoin future contracts is on the rise. Coin glass data shows a nominal value of open interest has reached a yearly high of 12 billion. And that's a 7% gain this month, which again makes sense. Positive price action. Increase in open interest means new money is flowing into the market, but doesn't reveal whether traders are positioning for gains or losses. For that, you can actually check there's a liquidation website you can check, forget what the name of it is offhand, but it'll show you who is getting wrecked. But anyway, for Bitcoin, new money seems to be getting in on gains considering the funding rate or the cost of holding bullish long, very short positions is flipped into green after spending most of the early parts of the Asia trading day in the red. And positive funding rates usually indicate a bullish trend as long as positions compensate short positions. I know that is a mouthful, but I'm excited about Bitcoin prices. Everybody else excited is Bitcoin going to a $1 million. What's going on? Will I see you smiling here? I just love the trade action here this morning. And Bitcoin might go to a $1 million one day. We'll talk about that later. There are some interesting notes for this morning, so Bitcoin is at its highest level in the last 9 months. The highest trading volume since FTX collapsed and the highest D.C. eth ratio since July of 2022.
Crypto Industry Could Be Reshaped by Ongoing US Enforcement Actions
"4 p.m. Wednesday, march 8th, 2023. Crypto, industry could be reshaped by ongoing U.S. enforcement actions. Gary gensler is regarded in some quarters to be hostile to the U.S. crypto community. Previously, the Securities and Exchange Commission SEC chair has talked passionately about the demerits of cryptocurrencies and the strong need to regulate its industry. Since FTX is collapse, gensler has been extra aggressive toward crypto, even if Congress has been slow continue reading crypto. Industry could be reshaped by ongoing U.S. enforcement actions. The post crypto, industry could be reshaped by ongoing U.S. enforcement actions appeared first on cryptocurrency wire.
Silvergate Capital, SVB failures weigh on Bitcoin price
"9 a.m. Sunday March 12th, 2023. Silvergate capital, SVB failures weigh on Bitcoin price. Bitcoin finds support at 20 K many cryptocurrency companies had exposure to SVB Bitcoin investors should keep an eye on the SP 500 and the fed cryptocurrency investors had a rough 2022. Bitcoin and other major cryptocurrencies trended lower affected by the FTX failure, which triggered a loss of faith in the industry. But the market the post silvergate capital SVB failures weigh on Bitcoin price appeared first on coin journal.
Bitcoin perps most negative since FTX collapse, while Bitcoin continues to be withdrawn from exchanges
"4 p.m. Sunday, march 12th, 2023 Bitcoin perp's most negative since FTX collapse, while Bitcoin continues to be withdrawn from exchanges. Quick take the second most amount of Bitcoin withdrawn from exchanges this year at roughly 15,000 BTC. The post Bitcoin perp's most negative since FTX collapse, while Bitcoin continues to be withdrawn from exchanges appeared first on crypto slate.
The Real Reasons Silvergate Collapsed
"All right guys, well, it has happened. As of last night, silvergate bank, one of the pioneers in giving crypto companies banking access is officially winding down. Today we're going to deep dive on the closure and how we got here because I think the how is incredibly important. I think that there are three possible interpretations of this whole affair. The first, let's call crypto risk. The idea that this was some inevitable byproduct of bankers getting involved with the overly risky crypto sector. This you might sum up as the Elizabeth Warren position. The second possible interpretation is that silver Gates failure wasn't strictly a byproduct of crypto risk, but had to do with specific risks that silvergate took in its business. In other words, specific business decisions they made. The third possible interpretation is that this was a coordinated hit led by a combination of short sellers and antagonistic politicians out for blood in the wake of the collapse of FTX. So keep those three possibilities in mind as we dig into the story. On Wednesday, silvergate bank announced that it would quote voluntarily liquidate its assets and wind down operations. A press statement explained, quote, in light of recent industry and regulatory developments, silvergate believes that an orderly wind down of bank operations and a voluntary liquidation of the bank is the best path forward. The banks wind down in liquidation plan includes full repayment of all deposits. The company is also considering how best to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets. Outside legal, financial and project management advice firms have been appointed to assist with the winding down process. Now silvergate has looked shaky since announcing last Wednesday that it would be delaying the filing of its ten K annual report. The delay notification stated that silvergate needed more time to assess how regulatory investigations and losses associated with last November's $8 billion bank run had affected its earnings. The filing suggested that the situation of the bank could be dire, explaining that these events had led management to evaluate the bank's ability to continue as a going concern. In the fallout from last week's announcement, silvergate rapidly shed its crypto customers as one by one major crypto firms announced that they had cut ties with the distressed bank over the course of the following day.
CoinDesk Podcast Network
The Crypto Industry's Banking Crisis
"Plenty going on a little bit of a crypto banking crisis going on and Jen is going to take a hack at that one with the first story of the day. What do you got? All right, so in the face of this crypto banking crisis, crypto dot com is struggling to maintain its Fiat on ramps. The exchange's current banking partner is only accessible to users in the European Economic Area and in other news, you'll remember we spoke about silver gate yesterday working with the FDIC to try and stay afloat. Now they are saying that they are going to voluntarily liquidate and wind down operations. Zach, I'm going to toss this one off to you. Where do we go from here? Yeah, we were talking just yesterday like watch this story and that sure enough voluntary liquidation hit that night. Wow, amazing. Anyway, silvergate was, as we discussed yesterday, a major partner to many crypto firms in the space, providing both Fiat, offering up on ramp, and also just banking services, right? They had been sort of a pioneer in serving an emerging sector. And by way of their association with FTX and almita, they seem to have passed away. So they're being wound down, that's something that sends multiple players in the space scrambling to look for additional banking partners. And I think it's becoming more and more difficult. Again, in the wake of this joint pronouncement in January from U.S. banking regulators that touching crypto is bad, according to them. And so therefore, people are trying to figure out how to make this work. It really does seem as though crypto and the U.S. is in crisis right now. Off ramp into the beloved U.S. dollar is indeed compromised at scale, right? There's still several banky partners out there signature we mentioned yesterday. Customers bank, we mentioned previously. But these are banks that are potentially proceeding at their own risk, right? They probably have better risk parameters in place. A lot of them didn't have exposure to FTX, so they should be fine
Blockchain Association Says More Transparency Needed in US Crypto Regulation Formulation
"2 p.m. Monday, February 27th, 2023. Blockchain association says more transparency needed in U.S. crypto regulation formulation. While many entities have yet to recover from the FTX collapse, plenty of investors, well wishers and lawmakers who were supportive of the space are feeling somewhat betrayed by the implosion of FTX. The U.S. Congress needs to make the legislation of crypto a transparent process, so that there is a critical look at the continued reading blockchain association, says more transparency needed in U.S. crypto regulation formulation. The post blockchain association says more transparency needed in U.S. crypto regulation formulation appeared first on cryptocurrency wire
FTX Reports Just 694M in Liquid Assets
"7 a.m. Friday March 3rd, 2023. FTX reports just 6 94 M in liquid assets. FTX debtors revealed that both FTX dot com and FTX U.S. have a massive shortfall of assets. In a second presentation to its official creditor committee, the FTX debtors said that they have located 2.2 billion of total assets at FTX dot com and 191 million at FTX U.S.. Of the assets located at FTX dot com just the post FTX reports just 6 94 M in liquid assets appeared first on unchained crypto.
Senators Question Binance on Eerily Similar Claims to FTX
"7 a.m. Friday March 3rd, 2023. Senators questioned violence on eerily similar claims to FTX. U.S. senators have alleged that the limited public information about binance's finances suggests that it is a hotbed of illegal financial activity. In a March 1st letter addressed to binance CEO chomping zhao and binance, U.S. president Brian Schroeder, senator Elizabeth Warren, Chris van hollen and roger Marshall requested information about. The post senators questioned by eerily similar claims to FTX appeared first on unchained crypto.
SEC and CFTC Charge FTXs Nishad Singh
"4 p.m. Wednesday, March 1st, 2023. SEC and CFTC charge FTX, Nisha Singh. FTX chief engineer, Nisha Singh, was hit with lawsuits from both the SEC and the CFTC shortly after pleading guilty to 6 criminal charges yesterday. Aiding and abetting fraud another
Coinbase Halts Payments With Crypto Friendly Bank Silvergate
"4 p.m. Thursday, march 2nd, 2023. Coinbase halts payments with crypto friendly bank silvergate. Silvergate bank is still suffering from the aftermath of the FTX collapse it admitted to the SEC yesterday that it was uncertain about its ability to continue operating. Silver Gates and solvency
Market Analysis Report 03 Mar 2023
"9 a.m. Friday March 3rd, 2023. Market analysis report March 3rd, 2023. Ethereum debs pushing high upgrade to April FTX reveals 8.9 billion shortfall in customer funds block to use Bitcoin reserves for lightning network liquidity.
The Bad Crypto Podcast
How to Get Your Crypto From Bankruptcy
"We've got a specialist today who's been a chief restructuring officer, helping companies in various industries. Now is the CEO of a company called exclaim dot com X claim dot com. They save your crypto is now in bankruptcy proceedings that you can trade your claim for cash. His name is Matt siddi. Nailed it. Matt, welcome to the bed crypto podcast. Thank you for having me. Excited to have the conversation. Yeah, so there's been a whole string of crypto exchanges or custodial services that have failed. I've named two of them, Voyager and Celsius. We also know that, of course, FTX screwed over a good many people and three arrows has got problems because of their exposure to some of these. What are some of the other ones that might be lesser known were people could have gotten hurt? Yeah, you named four of the big ones, but in December, BlockFi also filed for bankruptcy. And genesis in January. If we go further back, there were actually some other bankruptcies like Cred, nearly two years ago, but in the last 6 or 7 months is really when it exploded. And unfortunately, a lot of people got hurt by that. Luna, that was crazy. I mean, there was like a couple of months there that was like, boom, boom, boom, boom, boom. And I was like, uh oh, is this, is this the end of crypto? Is crypto gonna crash here? What's going on here? It was insane as you saw Bitcoin just sort of go down with the ship a little bit. Now it looks like it's rising up again, but man, what a ride that was, huh? You could actually plot on a timeline. These bankruptcy cases and the value of Bitcoin and watch the watch them fall off a cliff within 24 hours of a bankruptcy filing
The Hole on the FTX Balance Sheet Remains Gaping
"All right, Friends, happy Saturday. Let's catch up with some news we missed from earlier in the week. And let's start with FTX. In a presentation filed in the FTX bankruptcy case on Thursday, bankruptcy lawyers said that the firm has a, quote, massive shortfall in assets. Amounting to $8.9 billion worth of customer funds. The presentation walked through the assets recovered so far, stating that 2.2 billion in cash and crypto have been identified in the wallets owned by FTX, valued at spot prices on the date of bankruptcy. Of this only 694 million was made up of what the bankruptcy estate is calling category a assets, which includes liquid assets including Fiat, stablecoins, Bitcoin, Ethereum, and other liquid tokens. Other assets include 385 million in payments due from customers, as well as a massive claim against Alameda research. The presentation showed that Alameda had $9.3 billion in net borrowing from FTX at the time of bankruptcy. Essentially, the entire shortfall is attributable to loans made to Alameda. Although, of course, we're using the word loan very, very loosely. FTX U.S. also showed a shortfall in customer assets of around a 116 million. The FTX U.S. accounting also showed that Alameda research was owed a net of a 107 million from the U.S. exchange. Unauthorized transfers were detected from both exchanges after the bankruptcy filing, and here's an interesting little detail, unauthorized transfers were detected from both exchanges after the bankruptcy filing, with 139 million from the U.S. exchange, and 293 million from the international exchange. Now, this FTX U.S. shortfall is something that I think is pretty notable given that Sam has continuously said that FTX was solvent despite the fact that Carolyn Ellison said that Sam instructed Alameda to wire millions of dollars to FTX U.S. during that week that everything was happening in order to shore it up.
CoinDesk Podcast Network
"ftx" Discussed on CoinDesk Podcast Network
"Since he took over the exchange. Quote, it has taken a huge effort to get this far. The exchanges assets were highly commingled and their books and records are incomplete and in many cases totally absent. For these reasons it is important to emphasize that this information is still preliminary and subject to change. We believe it is more important to provide transparency to stakeholders by making this information public now than to wait until we can achieve certainty. Now as for the international exchange, the FTX team identified almost $7 billion out to customers offset by only 694 million in cash assets and a further 310 million in payments due from customers. FTX had a deficit in every token treated as a category a asset like we just discussed, which included every reasonably liquid token right down to Solana, Tron and Matic. Each category B asset, the tokens with insufficient liquidity to realize that book value had a significant surplus. This category mainly contained the so called Sam coins, like FTT, maps, and serum. As a particularly egregious example, the recovery so far has found 1 million in Bitcoin held on the FTX dot com balance sheet against 1.6 billion in customer deposits. And this is obviously one of the biggest points of this whole thing. It's quite clear that in addition to just shipping assets off to Alameda to do whatever the hell they wanted to with them. Part of the fraud that Sam was perpetrating was that he was trading real assets for bullshit assets that he had invented. Effectively, the FTX balance sheet was just a giant hedge fund for coins that he had a disproportionate share of. The presentation also included a brief timeline of the work that has been undertaken to verify customer data. On the day of the bankruptcy filing, FTX appeared to be the target of a cyberattack, with the website being disabled and customer balances becoming inaccessible for users. According to FTX, their data team undertook a three week long customer balance review in December, and this process uncovered quote significant balance issues. A subsequent review was then performed in a collaboration with TRM labs. FTX said that this process involved reviewing 120 billion rows of user transaction data, 14 million wallet addresses, and revealed, quote, abnormal internal user accounts. Now, one of the big questions in all of this is, what's Alameda side of this equation? Was he lawyer tried to dig in a bit on exactly that? They write today, FTX released a preliminary analysis of the asset and liability position on FTX dot com and FTX U.S.. So here's a quick analysis brought to you by a Hentai anime penguin in a suit that woke up at sunrise to attend a poorly scheduled meeting. Headline figures are as follows. FTX dot com has 11.2 billion of customer receivables versus 2.15 billion of located assets and FTX control, which means you're looking at a net shortfall of about 9 billion. The shortfall is attributed to a massive loan to Alameda as expected. Of the located assets only about one third of it is in cash or liquid cryptocurrencies. The remaining two thirds is in Sam coins, including the astounding 1 billion in maps. The hole is a net position of about 9.3 billion ode to related parties, mainly Alameda research. FTX U.S. are better off with about 335 million to customers and a 190 million in located assets. There are some customer receivables for both FTX international and U.S., but I am not considering those as assets unless there is a set off position. IE nobody is paying that back into FTX. These numbers are all preliminary, of course, but so far, what it does tell us is that there are sufficient records to reconstruct the FTX U.S. and FTX dot com positions. So we may not get substantive consolidation. That is FTX international creditors may get less than U.S.. So this is good news for FTX U.S. creditors that it does sound like there's a possibility that the separate legal entities are going to be respected. But what we are missing here is Alameda's position because most of the remaining recovery is contingent on Alameda. To recap if we are respecting the existing corporate structures, it means we are going to have to follow the intercompany positions in order to establish which silo recovers what. The first big intercompany position takes us from FTX international into Alameda. Alameda owes FTX international almost $9 billion, so we need to figure out how much FTX international can recover on this intercompany loan. In order to establish this, we need to know what creditors Alameda has other than FTX,
CoinDesk Podcast Network
Senators Claim Binance Is a 'Hotbed of Illegal Financial Activity'
"David, you're going to take us into a couple of items from binance, take it away. Yeah, and Biden has been kind of an ongoing article of interest for the past couple of months, kind of in the wake of the FTX collapse and a lot of skepticism around centralized exchanges. The first part of this two part story is kind of the less interesting, which is just that three U.S. senators have sent a public letter to binance asking for a lot of information that, frankly, they're probably not going to get. But alleging with some cause that binance has enabled a lot of criminal activity and also concealed financial information from customers, which we're going to talk about more in the second part of our first half here. I'm not going to unpack an entirely. But we did get a response from a finance spokesperson to that letter, which frankly echoes some of the issues that we have seen in communications from binance recently, which is that they are fairly vague hand wavy. I think that the funny part about this statement is that it says we look forward to correcting the record. We're not going to do it now, but we look forward to correcting the record at some point. And that has been in general finances, attitude, and we'll see more of that in a bit. The one thing I would note is that of the three senators, one of them is Elizabeth Warren, who, frankly, whatever you feel about her and other realms, has sort of burned some of her powder as a crypto critic already and not necessarily to the most effective use. It's sometimes a little bit harder to take things seriously when it comes from Warren, but it is true that binance has left a lot of unanswered questions. It remains to be seen how much they can stay out of U.S. regulators, grasp, but they're certainly being reached for. One of the things that really stood out to me with the way that binance has been responding to this is there is a lot of as you say in this direction, but there's also a lot of suspicion of the media and one of the things that in the years that I think that you and I have covered crypto David is that there are some serious problems with companies and the way that they deal with the media in the first place
FTX Ex-Engineering Chief Pleads Guilty to Criminal Charges
"Yesterday the news tightened around sand bagman freed even further as yet another of FTX most senior execs turned against him. Former head of engineering at FTX nishad Singh pled guilty to criminal fraud charges and agreed to assist prosecutors in their case against SPF. As part of his agreement, single plead guilty to one count of wire fraud, three counts of conspiracy to commit fraud, what count of conspiracy to commit money laundering, and one count of conspiracy to defraud the United States by violating campaign finance laws for a total of 6 counts. Now in separate civil actions, singers agree not to contest fraud complaints from the SEC and the CFTC. The SEC will be asking for a ban on sing asking as a corporate officer or director, which will be subject to court approval. This is in line with previous plea agreements from other FTX co-conspirators, Carolyn Ellison, and Gary Wong. In a statement sings lawyers said quote, shot is deeply sorry for his role in this and is accepted responsibility for his actions. He wants to do everything he can to make things right for victims, including by assisting the government to the best of his ability in this case. Now, nashad turning on Sam has seemed kind of like a foregone conclusion. Ever since we got that conversation that Sam had with the vox reporter that he thought was off the record where he said that nashad felt really terrible really genuinely terrible about all this, whereas Sam kind of made clear that he didn't. Now Singh was released on a $250,000 bond to await sentencing and his was so much lower than Sam's bond because as prosecutors said, Singh had traveled back from The Bahamas voluntarily in November shortly after the collapse in part to assist with Justice Department investigations.
Gary Gensler, Bitcoin and the Bad-Faith SEC
"All right Friends, well, hope you had a great weekend. And to kick the day off, I wanted to bring you back to a simpler time. Remember when Gary gensler was first coming into this SEC role and so many folks, myself included thought, hey, maybe this will be good. I mean, this is a guy who has taught about Bitcoin and crypto at MIT right? The simple fact of that understanding is almost certainly likely to make him better to work with than someone like Jake Clayton and then remember how Gary decided to be avowedly against the industry. To perpetuate a regulation by enforcement approach and to take actions that are clearly less about the investor protection he purports to care so much about and so much more focused on advancing his own political career, while in all of that, a road bump on Gary's preferred political path are the questions that swirl around his discussions with Sam bankman freed and FTX. Genzler's opponents in Congress are getting louder about demanding answers. About the SEC's discussions with FTX, as well as their investigations into FTX after the collapse. The narrative those opponents are trying to make stick is a pretty simple one. At the same time, Gary was scoring PR victory slapping Kim Kardashian on the wrist, he was also meeting with the guy who ended up being revealed as one of the biggest financial frauds in American history. The problem for gensler is that it's a pretty compelling narrative sort of backed transparently by the facts. It's enough of a problem, in fact, that gensler has started to fight his own media counter offensive. Late last week, New York magazine published a pretty extensive piece called can Gary gensler survived crypto winter. D.C.'s top financial cop on bankman freed blowback. In the interview gensler discusses at least one of his meetings with FTX directly. The meeting in question came a year ago in March 2022. FTX had come in with IEX, a stock exchange that they were in the process of acquiring a piece of, and the two firms together were pitching a quote alternative trading system, which is basically an SEC approved trading venue that has lighter regulations than being a national securities exchange would.
US Regulators, Lawmakers Want Tougher Action on Crypto Industry
"2 p.m. Tuesday, February 21st, 2023. U.S. regulators, lawmakers want tougher action on crypto industry. It was a catastrophic event for the crypto fraternity when FTX folded in November. This was termed the Lehman moment when a giant within the industry buckled, the damage spread, and reluctant regulators suddenly had an epiphany and went on a public rampage to improve their image. The crypto industry is now plunging into the continue reading U.S. regulators. Lawmakers want tougher action on crypto industry. The post U.S. regulators, lawmakers want tougher action on crypto industry appeared first on cryptocurrency wire.
The Coin Bureau Podcast: Crypto Without the Hype
"ftx" Discussed on The Coin Bureau Podcast: Crypto Without the Hype
"Joke. Up next, we're getting some breaking. There's so much news happening around the world that we're somehow supposed to stay on top of. And with the constant flood of information coming at you, it can feel impossible to make sense of it all. That's why we launched the big take. It's a daily podcast from Bloomberg and iHeartRadio that turns down the volume a bit. To give you some space to think. I'm west kosova. Each weekday, I dig deep into one important story and talk about why it matters. You'll hear from Bloomberg's journalists and analysts around the world. And the people at the center of the news that affects all of us. And we do it in plain English. Listen to the big tag on the iHeartRadio app, Apple podcasts, or wherever you listen. The collapse of FTX and Alameda research has left crypto holders wondering what other exchanges might be doing with their customers coins and tokens behind the scenes. The call for transparency by the crypto community has been answered by most major cryptocurrency exchanges, which have published proofs of their crypto reserves over the last two weeks. Today, I'm going to explain what proof of reserves means, scrutinize the crypto reserves of some of these exchanges and examine whether decentralized exchanges will take over as a result. FTX is shenanigans have inevitably led to questions over the reliability and trustworthiness of other exchanges and rightly so. FTX secretly sent billions of dollars of its user's cryptocurrency to prop up its sister trading firm Alameda research. This is why FTX couldn't process all the crypto withdrawal requests coming from its users, and ultimately why the exchange had to file for bankruptcy. Oddly enough, it was binance CEO Chang Peng zhao or CZ who proposed a solution to the crypto community's collapse in trust. I say, oddly, because CZ's tweet that binance would be dumping its FTT is one of the catalysts that led to FTX and Alameda's collapse. On the 8th of November, CZ tweeted quote all crypto exchanges should do merkle tree proof of reserves. Banks run on fractional reserves, crypto exchanges should not. Binance will start to do proof of reserve soon. Full transparency. So for those unfamiliar, proof of reserves or POR essentially involves taking a cryptographic snapshot of the coins and tokens held by a cryptocurrency exchange. Now, it's important to note that POR is supposed to be done with the help of an independent third party or protocol. In this case, it looks like most cryptocurrency exchanges have been working with blockchain analytics platform nansen for their POR. I'll leave a link to nansen's exchange holding page in the description if you're interested. Now, another thing that's important to note is that POR is also supposed to include the liabilities of a cryptocurrency exchange. In this context, liabilities means the coins and tokens and exchange is holding on behalf of its users. Obviously, these coins and tokens don't technically count as an exchanges assets. If you watched our recent video about FTX bankruptcy filing, you'll know that both FTX U.S. and FTX international didn't count their users crypto as liabilities on their balance sheets. This basically made it look like both had enough crypto on hand to meet withdrawal demand. When they really didn't. Now, the only exchanges that have included liabilities in their proof of reserves so far have been kraken, which actually began doing POR back in February, gate dot IO, which uses the same accounting firm as kraken, and okx, which apparently reported its own liabilities without an accounting firm. Funnily enough, coinbase has not provided POR for assets or liabilities. Coinbase COO Emily Choi explained to coindesk that this is because coinbase is regularly audited as a publicly traded company. So it's balance sheet is already fully available. I'll leave a link to it in the description if you're interested. And before I go on, I will caution that even if an exchange has done, thorough POR for both its assets and liabilities, there is no guarantee that your crypto is safe on that exchange. This is simply because you can never know for sure that the individual or institution that crunched the numbers is being honest. The only way to guarantee the safety of your cryptocurrency is to keep your coins and tokens in your own personal non custodial wallet. It's also the only way to guarantee your financial freedom, because having millions in the bank means nothing if you don't have the ability to spend that money when and how you want. Seriously guys, I can't stress this enough. Be sure to check out my recent video about how to keep your crypto safe. It too will be in the description. Now the first POR I want to analyze comes from binance, which was of course, after kraken, the first exchange to provide POR. If I had my tinfoil hat on, I'd tell you that binance led the charge for POR to further squeeze its competitors. Then again, other exchanges probably wanted to do POR to increase user confidence. In any case, the top assets on binance's balance sheet are as follows. 31% in the BUSD stablecoin, 22% in the USD T stablecoin, 13% in BTC, just under 10% in BNB, 8% in eth and the remaining 16 or so percent in other cryptocurrencies. Grand total $67 billion. Now this would be amazing were it not for the fact that binance has yet to publish proof of liabilities. Specifically of user deposits. With an estimated 30 million users, it's very likely that binance's liabilities are very large and likely on par with its assets as with other exchanges that have revealed their liabilities. That said, in a Twitter spaces discussion, CZ explained that binance has no liabilities. This doesn't make much sense given that the exchange obviously holds the coins and tokens of many of its users. This is admittedly concerning, but binance should be publishing its liabilities soon. More about that later. In the interim, we're likely to see no shortage of hit pieces such as this one from Bloomberg, which took issue with the fact that around 40% of binance's reserves are held in its own branded assets, namely BUSD and BNB. CZ called the article fake news and rightfully so to some extent. That's because even though BUSD is branded as finances stablecoin, it's actually issued by paxos a heavily regulated stablecoin issuer based in the United States. Paxos actually seems to be the most regulated stablecoin issuer of them all, which theoretically makes BUSD the safest stablecoin. Binance is holdings of USD T are more concerning though. Tether has already been under extreme scrutiny from U.S. regulators for years. Given that Alameda research was the largest recipient of all the USD T ever issued, I suspect that this scrutiny will soon return and possibly with even more intensity. Don't even get me started about all the pending stablecoin regulations either.
The Coin Bureau Podcast: Crypto Without the Hype
"ftx" Discussed on The Coin Bureau Podcast: Crypto Without the Hype
"It's been two weeks since FTX and Alameda research collapsed, and yet we are still only just starting to understand what happened. And what the effects on all of cryptocurrency could be. One of the biggest bombshells so far has been FTX bankruptcy filing from last Thursday. What it reveals about the crypto exchange is downright disturbing and foreshadows further grave issues for crypto. Today I'm going to give you a summary of FTX bankruptcy filing, tell you what it says in simple terms and explain exactly how it could affect the crypto market. Okay, let's get straight into it. FTX is bankruptcy filing begins with a declaration from the exchanges new CEO John J ray the third now there is a name. For context, Sam bankman fried stepped down as CEO of FTX when FTX and its sister company Alameda research declared bankruptcy on the 11th of November. You should also know that Jon is famous for being the CEO in charge of overseeing the bankruptcy of American energy company enron. John has also worked on other high profile bankruptcies such as nortel. His involvement in the FTX bankruptcy therefore underscores how serious the situation is. Now John starts by saying that he was appointed CEO of FTX in the quote early morning hours of the 11th of November, and his first order of business was to file for bankruptcy. His second order of business was to work with blockchain analytics firms, regulators and law enforcement to identify FTX assets. John then bluntly states quote never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here. This statement made the headlines in both the crypto and mainstream media. John goes on to explain that the chapter 11 bankruptcy filing by FTX has 5 objectives. Implementation of controls set up new procedures in the company, asset protection and recovery, transparency and investigation of Sam bankman fried. Efficiency and coordination with regulators, law enforcement, et cetera and the maximization of value, IE, compensating those affected as best as possible. John reveals that the information in this bankruptcy filing is based on his knowledge of what was going on at FTX. Obviously, the information is likely to be incomplete, hence why John notes that FTX will submit additional information in the coming weeks as it's unearthed. In other words, this still might just be the tip of the iceberg. Now, the first part of the bankruptcy filing details how FTX was structured. John identifies four groups of businesses which he refers to as silos. The first is called the WRS silo and it includes all of FTX U.S. companies and subsidiaries. Now for the sake of simplicity, I'll refer to the WRS silo as the FTX U.S. silo. The second silo is the Alameda silo, which includes all the companies related to Alameda research, which was one of the biggest traders and market makers in crypto. Alameda was actually the largest recipient of all the USD T ever issued by tether, more about that in the description. I digress. A footnote for the Alameda silos balance sheet notes that Alameda research loaned $1 billion to Sam bankman freed. Over $540 million to engineering director Nisha Singh and over $50 million to FTX co CEO Ryan salami. The third silo is the ventures silo, which includes all the companies related to FTX investment activities. Now, John refers to the fourth silo as the dot com silo. This is a little confusing since the dotcom silo includes all of FTX overseas companies and subsidiaries. So, let's just call this the FTX global silo. Now John explains that these four silos make up the FTX group. Not surprisingly, Sam bankman freed was the controller of all four silos. John notes, FTX and Alameda research cofounder Gary Wang as a minority shareholder in the FTX group, along with Nisha Singh, who was apparently also a cofounder. What's crazy is that no other investors besides Sam, Gary and nishad held more than 2% of any of the silos. What's even crazier is that FTX had raised $2 billion before going bust. This means that those investors got basically nothing in return, which raises lots of questions in my book. Anyways, what you're looking at here is a breakdown of the four silos, along with the ownership stakes that Sam Gary nishad and other investors had in them. If you're just listening in, Sam held 53% of the FTX U.S. silo, 90% of the Alameda silo, 67% of the venture silo and 75% of the FTX global silo. Third party investors only held 22% of the FTX U.S. silo and 25% of the FTX global silo. The rest was owned by the trio. John also provides a corporate structure chart for the silos and their surgeries. Now there's honestly too much information to go over here, and it's also kind of pointless to summarize since John cautions that its preliminary IE incomplete. The link to the full bankruptcy filing will be in the description if you want to take a closer look, the company organization chart is on the very last page. Anyways, John goes on to give a detailed breakdown of each of the four silos, starting with the FTX U.S. one. He begins by explaining that the FTX U.S. exchange itself had over 1 million users and was registered with the Department of the Treasury as a money services business. Not only that, but one of the subsidiaries of FTX U.S. was registered with the SEC. Some of you may have heard that there are peculiar connections between FTX, Alameda research and the SEC via Sam and Alameda CEO Caroline Ellison. I reckon this SEC registration is another peculiarity to add to that pile. After talking about all the other subsidiaries that were owned and operated by the FTX U.S. silo, John reveals that these subsidiaries hold around $1.4 billion in assets. However, he cautions that the numbers are likely incorrect due to Sam's involvement in the balance sheet report. It was also unordered. Interestingly, the FTX U.S. silo appears to have just under $400,000 of liabilities. That is dead. John notes that this can't possibly be accurate, given
Crypto Camel Podcast
"ftx" Discussed on Crypto Camel Podcast
"This was the information that was submitted by FTX as part of its insolvency proceeding. So needless to say, this is affected the entire crypto market with users showing less interest in the positing their funds any further. So following the FTX crisis, there is concern that any other platform will declare liquidity crisis and lock its funds for an indefinite period of time. So FTX wasn't able to meet the withdrawal demands and it caused panic and it calls it on many different platforms. Bitcoin right now it's dropped significantly from its all time high. And FTX basically the worst in this concern by contributing to a further decline in its one week value. So Bitcoin basically was trading today at 15 8 9 7. Which is a 3.6 decrease in Ethel to 1120, which is a 7% decrease. And this is the eth is largely due to some of the eth that's being moved around that was hacked and stolen from FTX. But the overall crypto markets lost over 260 billion. And binance is basically willingness to liquidate the FTT tokens through the acquisition of the companies, non U.S. operation was formerly viewed as a way out of the enterprise. Now, FTX is presently attempting to restructure the so called empire. However, gaming's everyone's trust will be tough and less crypto ventures band together to support the revisions. There's little clarity regarding the end of the FTX crisis. And basically, the market is kind of in a wait and see mode to determine if any other entities are in danger of collapsing. Creditors and investors, well, they've all turned out to be the biggest victims of the crisis. And with millions stuck in the now bankrupt network. And in addition to this, there's reports claiming that a hack, which has, as I told you, but now 477 million is the latest number. It's set to be put into the market. And this is further driving the market down today. And the latest for the FTX contagion is genesis, which genesis says they're going to go bankrupt without fresh funding. So there's still yet to receive this critical investment to recover from the FTX collapse. And now they're considering to be insolvent and genesis, which is the crypto brokerage platform that froze withdrawals last week. They may result to bankruptcy basically if it fails to raise money from the potential investors. This is according to people that are familiar with the matter. So and it was reported on B and B and then Bloomberg that genesis has spent the last several days attempting to raise $1 billion in capital from potential investors. This backs up a Wall Street Journal report on Friday which claimed the training firm was unsuccessful in its endeavor. Bloomberg stated that genesis wasn't talked with
The Coin Bureau Podcast: Crypto Without the Hype
"ftx" Discussed on The Coin Bureau Podcast: Crypto Without the Hype
"And basically the crypto community was having to come to terms with the fact that I think FTX had around a million customers, a million users. So not all of them will have had huge amounts of crypto on the exchange, but unfortunately we saw a piece of sorts of the situation that we'd seen earlier this year. People who had significant amounts of money in some cases, all their life savings, tied up in FTX. And now having to come to terms with the fact that it is gone. As we've seen with bankruptcy filings from the likes of Celsius, you know, there is a, there is a chance that they may get some of their bear in mind, I should say, Mikey, the bankrupt that those who were that mount gox mount gox, when it went into when it filed for bankruptcy about 8 years ago, its creditors have still not been made whole. They are still waiting for the Bitcoin. So yeah, it's terrible news for FTX users. It's terrible news for the whole crypto community. And I guess the hardest, the hardest part of it was that it's happened again. Again. We have, we were here just a few months ago. And it has happened again. I should say as well, like, you know, there were all these conflicting reports coming out. FTX staff, like most of them, were completely in the dark, you know, they didn't know what was going on at the top. And it seems at this stage. Again, you know, we can't be, we don't have full clarity yet over what was going on. But it seems at this stage that basically SPF and a few other people at the very top. Knew what was going on. They knew that Alameda had taken these huge losses. They knew that FTX customer funds had been used to plug it. They knew that Alameda and by extension FTX were on very, very thin ice. But
The Coin Bureau Podcast: Crypto Without the Hype
"ftx" Discussed on The Coin Bureau Podcast: Crypto Without the Hype
"And the head of binance U.S. was a chap called Brian Brooks. And he only lasted about four months and then a while back kind of resigned, very suddenly, and it was a bit of a big surprise to everyone. Anyhow, it later becomes clear that Brian Brooks has very, very close ties to FTX. And he apparently attended at least one, maybe even more. FTX events sort of very shortly after leaving binance U.S.. Anyhow. So as you can imagine, not only are these two exchanges kind of locked in a lot of rivalry. But binance and Cesar are becoming increasingly pissed off about the fact that FTX is lobbying against them behind the scenes. After investing in them heavily initially. Yeah, so there's the kind of the added kind of element of betrayal, I guess, if you like. But that's very important. We've got to remember that because this is kind of key to what happened next. The fact that binance was a big investor in FTX. So and also, I think these kind of hit pieces on binance. They really reached a low point, not that long ago when Reuters published a number of pieces. That were very critical of finance and CZ, but also kind of mentioned CZ's children. As well in at least one of the articles, and, you know, that, again, like you don't need to be a journalist. You don't need to be an expert on these things. To know that you don't go after, you don't go after people's children. That is just. I mean, are they still children, or are they adults working in the industry? No, they're toddlers, I believe. Well, that's just disgusting. Yeah, it's just, yeah, it's just not right. So as you can imagine, CZ by this point is not a happy meal. Curious. Yeah, and who can blame him? Now, going back to the facts that binance was an early investor in FTX. Binance, now FTX, once it sort of, I think it was 20 20 if I remember rightly. 2020 or 2020, and it was 2021. FTX decided that it kind of wanted to sort of part ways with binance. So basically, SPF negotiated to buy back those FTX shares that finance had invested in that binance owned from its initial investment back in 2019. And so in return for these shares in return for selling its stake in FTX binance got a mixture of BUSD, which is binance's own stablecoin. And so it got about $1.5 billion worth of BUSD. And it got $580 million of FTT. Now FTT is FTX exchange token. Okay? So this is this is very important to remember. Basically, finance, this rival exchange that is pissed off with the way that SPF and FTX have been behaving. Has a large chunk and has an influence on what happens at FTX. Is that not what it means?
"ftx" Discussed on Bitcoin Audible
"On Tuesday morning, FTX appeared to find the white knight it severely needed. Although it would come in a form that no one expected. Binance. The non binding deal was still subject to binance's due diligence, as it appears to have been consummated via a phone call in little else. Still, despite the news, the price of FTT began to freefall from nearly $20 following the news of the acquisition to $3 by mid afternoon. It seems as if investors either didn't trust the deal to close, or didn't know how FTT would be treated in the event of the acquisition. By Wednesday afternoon the deal crumbled as binance announced that it would not pursue a potential acquisition of FTX. Reports in the media suggested that FTX was searching to raise $8 billion in capital from new investors to replenish customer funds. If it were unable to do so, it might file for bankruptcy, concluding one of the swiftest and darkest moments in crypto's history. Root causes and knock on effects. From the information available, it is unclear what specifically calls the catastrophic collapse of FTX in such a short period. The proximate cause was the $6 billion in redemptions requested by depositors in 72 hours. But the fact that FTX couldn't redeem depositors in full indicates they had done something else with customer deposits. According to a recent Reuters article, $4 billion of customer deposits were lent out to Alameda, following losses sustained in the market volatility of second quarter. The collateral posted by Alameda for borrowing in part consisted of FTT tokens, which evaporated in value, meaning FTX could have taken significant losses on its loans to Alameda. Making matters worse, if FTX called the FTT tokens posted as collateral by Alameda and sold them in the market to close out its loan, it would further push down the price of FTT. Exactly what it did not want. This series of events highlights precisely why you need exogenous capital, an error that echoes from the lunar U.S. T fiasco a few months back. A system is vulnerable to a circular reference death spiral like this one when the capital base is entirely reliant on the system itself. The industry is presently in a state of high alert. Like in the aftermath, the lunar UST collapse, investors were keenly attuned to other counterparty risks that may arise because of the collapse of FTX. Galaxy digital, $77 million, coin shares, $30 million, coinbase, $15 million. Genesis trading $7 million in multi coin, 10% of its master fund, all have disclosed exposure to Alameda or FTX. It appears that genesis had credit exposure to Alameda, while the other entities had trading balances stuck in the FTX exchange. It is unknown who else might be affected because of this washout, but it might just be narrowly contained to FTX, individuals and institutions with deposits on FTX, Alameda, and whoever else lent to Alameda. One of the unfortunate knock on effects may be that the lifelines extended to BlockFi by FTX and Voyager by Alameda may be in trouble. Although we have heard no updates, we can confirm that neide has no
"ftx" Discussed on The Breakdown
"Now there are a few major points that shook the market. First was the huge amount of FTT, which is the native token of the FTX international exchange. That was on Alameda's books. Of Alameda's $14.6 billion of assets, its largest by far was 3.66 billion of unlocked FTT, and its third largest asset was 2.16 billion of FTT collateral. Keep in mind at the time of the reveal that combined this FTT was worth more than the entire market cap of FTT. From the piece, quote, there are about a 197 million FTT tokens worth 5.1 billion in circulation, according to FTX website. The second notable fact about this balance sheet reveal was how much else was concentrated in highly illiquid tokens. There were hundreds of millions in tokens like SRM, which was the native token of the decentralized exchange that SPF started in late 2020. Plus tokens like maps, Oxy fita. There was also more than a $1 billion worth of various forms of locked and unlocked Solana. The third notable fact was just an implication of the first two. Alameda was really, really, really illiquid. As anyone who has ever tried to sell either a zombie token like maps or even just a relatively illiquid low demand token like FTT, the market cap that you see on coin market cap or any other site like it isn't really the market cap. Because there aren't really buyers. So even a tiny little bit of selling pressure can dramatically alter the price, which can itself cause its own cascading momentum, as what would happen next would demonstrate. That brings us to the weekend of November 5th in November 6th. Even before that Sunday, FTX was processing more withdrawals than normal, based on the reverberations of the coin desk piece on Alameda. But it wasn't until Sunday that things got really gnarly. I had noticed for months that the tension between binance and FTX was growing. Binance had been one of the earliest investors in FTX, but in 2021, FTX bought out binance's stake firmly separating the companies. Sam presented it at the time as a positive step for the company and it was widely seen as a key part of removing regulatory liability as FTX tried to get licenses to operate around the world.
Thinking Crypto News & Interviews
"ftx" Discussed on Thinking Crypto News & Interviews
"Note, my subscribers, my listeners know, for years, I've been saying use a hardware wallet. I have been using the ledger nano S and X for years. The majority of my holdings, my long-term model links are on hardware wallets, not on exchanges. Do I have some crypto on exchanges? Yes, but I use that for a swim trading. But I don't hold anything that I'm not comfortable with losing. So please, this FTX contagion is spreading and we don't know what else is going to happen in the coming weeks. So I highly recommend you move to a hardware wallet. You own your, you have your private keys, so you own your keys and your crypto. And you back up those private keys securely this way if you lose the device, you can recover your funds. Please do it. I'm telling you guys, this thing is not good. I have people telling me crypto dot com is not in a good spot. And I don't know what other exchanges are going to have problems. One or I'm going to share some evidence here if how things are not right with crypto dot com. So it has been revealed that FTX has received around 1 billion USD C stablecoin from crypto dot com. This was from a couple of weeks ago. And excuse me, not a couple of weeks ago, 11 days ago. And here's the issue, why is crypto dot com sending FTX 1 billion USD C stablecoin? What's that about? That's a red flag right away. Also, crypto dot com has pulled 80 million USD C out of binance addresses today to pay out withdrawals. 12 million back to circle. Why does a crypto exchange have so much unstable coins on another exchange? Where is their USD CO wallet? Another red flag, something is wrong and the data and the addresses match up to this. See what I'm talking about guys? Why is that? There's also reports that crypto dot com accidentally transferred $400 million worth of eth to another exchange CEO says. They sent it to gate IO. Now, this is like a rookie mistake. And when you are new to crypto, you send things that are wrong addresses and so forth. Well, they sent this amount of Ethereum. They claim they have recovered it. But I've been told that this is a bit of a farce in a sense that they're sending it to gate to put them to show their books are in order, then they send a crypto back and then it's like, oh yeah, our books are in order as well. So this is why I don't trust what's happening here, guys. Something fishy is happening here. It would reeks where there's smoke, there's fire, guys, not good. So the eth transfers were made over three weeks ago on October 21st, the crypto dot com's whitelisted corporate account at gate, crypto dot com proceeded to withdraw the funds back to its coal wallets over the following days. I spoke to them from the exchange tool to block any statement. The entirety of eth was successfully withdrawn by crypto dot com and return to our cold storage.
Bloomberg Radio New York
"ftx" Discussed on Bloomberg Radio New York
"Whole of this magnitude? Man, it doesn't parse together for me. It's not like a normal discussion of bankruptcy. And it's got to be wrapped around a board. Is there a board of FTX advising on this? There's a board of FTX for sure. And Sam bankman fried, you know, he is smart enough to surround himself with people that aren't yes men. On the other hand, he is the driving force in this business. You know, we've learned, for example, that there are employees operating without talking to him, which, you know, has to be something that he's not happy about. There was a lawyer operating for FTX U.S. who was putting out a memo to employees. And then the board told the lawyer to take the memo down. So there are forces operating inside maybe against Sam bankman freed's better wishes. Okay, here's what we're going to do. We're doing this in real time folks, which is what we love to do. It's surveillance. We're going to come back pretty Gupta is going to tell you about the market. We're going to move on here into the equity market opening at red and green on the screen. NASDAQ critically pulls back here on this FTX news. That's why we're going to stay. On this. And I do want to point out Bitcoin 16,600 was done $1200 moments ago. That's about an $800 move off these headlines. Again, FTX group says mister bankman fried is resigned as the chief executive officer. The FTX group says it is quote commenced bankruptcy proceedings
The Trader Cobb Crypto Podcast
"ftx" Discussed on The Trader Cobb Crypto Podcast
"Just to drop the confusion. I just sometimes I just feel so confused about all of this. So overwhelmed by the enormity of the lies betrayal and just, I mean, it's shocking. I don't even know what to say. That's what I've got to get rid of. I've got to get my head back. So I can understand this. Yes, I've got to feel this pain. I've got to understand what it means to me. And I've got to come back stronger from it. And I will. I will. But what I'm saying is if you are feeling a lot of pain right now, if it is something that is really affecting you, I would suggest what I'm going to do is to step away from the market, step away from the computer, step away from social media. Take some time, nature does he'll take your shoes off, walk on the grass, get to the beach, do whatever it is that makes you happy, and that will remind you that life will go on. It will be okay. Okay, the sun is still out there right now. It hasn't changed. The world around us hasn't changed too much. The world, the we live in, has changed significantly. And if that leads to further regulation, and I'm sure that it will, then I am absolutely all for it. Because Sam and FTX, with a poster child, they were incongruous, lying. They were champions of bailing people out. It seemed as though Sam was a bit of a hero. Well, it turns out he was the villain the whole time. And it was kept within a tight group of, I don't know what you call them. People. It appears that the FTX staff were kept in the dark. One thing I want to say about that is please, if you do know any FTX staff or whatever, be kind, they weren't in on this. They didn't know by all accounts that I'm understanding at this stage. They were lied to just as much as you were. Most of them held their balances in the actual platform. From what I understand and they are hurting. They really are hurting. It's a dark day in crypto. It's been a dark week and it will pass. We saw mount gox. That past, Bitcoin moved higher. We have seen this market recover, it will recover again. Please remember that please be safe, don't do anything drastic, don't know how to make silly. Take a breath. It will pass. You will be okay. As for the markets now, well, look, I won't be trading for the weekend. That's for sure. There's just been too much going on and I'm just not in the head space to do it. But what we did see yesterday was quite a significant bounce. Bitcoin up 10.63% before people get too excited. We did not close above that weekly support level that I've been speaking of for quite some time around 7, 17,000, 800.
"ftx" Discussed on Bankless
"So this is when we started the live stream yesterday, I kind of proposed this question as to why didn't Alameda research blow up like everyone else after the three arrows capital contagion. Like why were they different because that did kind of stick out? Why was FTX able to buy up everyone? While everyone else was bleeding. I mean, back in May, back in May. When we thought we flushed all the crap down the toilet and all the leverage and all the degen was kind of flushed out of the system and Bitcoin dropped to what? Definitely under 20 K, eth dropped to like triple digits 800. You would have thought Alameda would have gotten flushed out. In that whole process. Another degen hedge fund. Everyone got addicted to leverage in 2021. And so everyone that was on leverage Alameda was supposed to get fleshed out yet, Alameda didn't. Why didn't? Why didn't Halloween get flushed out? So again, this is just speculation, but this Lucas newsy guy. It throws in a very good thread of some on chain snooping that will go ahead and read out here. And he begins and says, I have found evidence that FTX might have provided a massive bailout for Alameda in Q two, which came which now came back to haunt them. 40 days ago, a hundred, 173 million FTT tokens worth over 4 billion USD became active on chain, and a rabbit hole appeared. And so this is the rabbit hole that Lucas goes down. That day, September 8th, over $8.6 billion of FTT was moved on chain. That was by far the largest daily move of FTT in tokens existence and one of the largest ERC 20 daily moves we've ever recorded at coin metrics. Oh, if this guy works at coin metrics, yeah, oh, he does. He did. He's a great snoop. Tweet three, I went through all the transfers that happened that day using coin metrics Atlas and ranked them. I found a peculiar transaction that interacted with a contract from the FTT ICO. This 2019 contract automatically released a 173 million FTT tokens from the tokens ICO address. The recipient of the $4.2 billion worth of FTT tokens was no one, but Alameda research. So what? Question mark. Alameda and FTX were intrinsically connected from day one and Alameda obviously participated in the FTX ICO. But what happened next was interesting. Alameda then sent the entire balance to the address of the deployer of the FTT ERC 20, which was controlled by someone at FTX. In other words, Alameda auto vested $4.2 billion of FTT just to immediately send it back to FTX. Here's what I think happened. Alameda as a conclusion of this. Alameda blew up in Q two along with three O's capital and others. It only survived because it was able to secure funding from FTX using the collateral of the 172 million FTT tokens that was guaranteed to vest four months later. Once vested all tokens were sent back as repayment. Remember, the FTT ICO contract vest automatically had FTX let Alameda implode in May, their collapse would have ensured the subsequent liquidation of all FTT tokens vested in September. It would have been terrible for FTX.
"ftx" Discussed on Ethereum Daily
"Binance signed a non binding letter of intent to acquire its rival FTX dot com. The deal does not include FTX U.S., which operates as a separate entity. Binance CEO CZ said FTX CEO Sam bankman fried reached out for help amid a liquidity crunch. FTX dot com has seen over $6 billion in user withdrawal requests over the last 72 hours. The move comes after binance announced plans to liquidate its position in FTX and declined and offered to have its position purchased from Alameda research, which is also owned by SPF. According to Reuters SPF approached other cryptocurrency exchanges, including oks before reaching a deal with binance, semaphore also reported the FTX was looking to raise more than a $1 billion from investors by midday on November 8th, the exchange is suspected of having a multi-billion dollar hole on its balance sheet after reportedly landing assets to Alameda research. The acquisition is currently pending due diligence from binance before a decision is made. Coinbase CEO Brian Armstrong assured users that the exchange has no material exposure to FTX or FTT and no exposure to Alameda research. Coinbase also published a blog post disclosing it holds $15 million worth of operational deposits on FTX, coinbase claims it never repurposes customer assets and holds user funds one to one. The statement comes as FT axis liquidity crisis ripples through the market akin to the collapse of Luna three arrows capital and Celsius,
CoinDesk Podcast Network
"ftx" Discussed on CoinDesk Podcast Network
"It is amazing how quickly things can change in this space. And that is what we're going to spend a good chunk of today talking about. Now, to get you caught up, all sorts of stuff went down yesterday in which sandbach and freed of FTX said that they had come to an agreement with CZ a binance for binance to acquire FTX dot com, pending, do diligence on the part of binance. Now, according to a source today, binance is leaning against getting this deal done. They took a look under the hood and it's not looking good according to a source talking to coin desks the analysis. This is a highly fluid situation, something that has captured the markets and mainstream attention as FTX and binance inch toward a possible takeover. There's so much to go into on this one. Really crazy stuff has been going on in the trading world in the past 48 to 72 hours. But here we are now on the cusp of possible deal, but then again, maybe not. I'm going to throw this to Wendy for her initial thoughts on this whole binance FTX thing, which is just gone crazy and so quick. What's up? So there is definitely a lot to talk about here. There's a lot to break down. I want to come in with this from a business perspective. Business perspective means the LOI, the intent to purchase FTX or to acquire, to save them, is just an intent. It doesn't mean that it's actually going to happen. A lot of people are complaining, especially on Twitter saying that binance kind of started this whole thing by fighting FTT, et cetera. But realistically, that might not be the actual case. CZ did put a memo out a statement out indicating what kind of happened. We don't know the exact story because we're not in internally. One thing I will say from a business perspective, it might not make sense after they do their due diligence process to actually acquire FTX. Another thing that's very important to note is FTX U.S. and FTX official or FTX international are completely two different companies. Right now, FTX U.S. is safe to use. However, people should still consider getting their cryptocurrency off of the exchange. I did that yesterday
The Bitboy Crypto Podcast
"ftx" Discussed on The Bitboy Crypto Podcast
"You know, they're fine. You shouldn't have any problem I would draw on your functions. And then, of course, this is all news leading up into what did happen. In which CZ basically bailed out. Here's another article basically just kind of go and they appear to stop processing withdrawals, but of course we all know what it ended up happening there. It's just a lot of well, and that's the thing we should that's what's so tough, like when a lot of this was coming out in real time, you know, either yesterday or last night or this morning. You know, when it came to that Bitcoin wallet, it was like, oh, that's just we're using a different wallet now to hold our Bitcoin. We're not going negative. It's just we're not using that one anymore. So we've moved it. That's why this is down 90% or something like that. So, and then same with the withdrawals, like I said, pause, look like very, very briefly. But good question from max, what happens to the FTX arena in Miami? Is it now the binance arena? Because you know, he normally sees the he's like kind of makes fun of people wasting all this money on sponsorship deals and naming rights for stadium. So no, there's going to be a lot of fallout lot. They're going to have to own one. What happens to Solana? Obviously Alameda are still involved in a lot of this stuff. They're still an entity. FTX U.S. is still an organization so they did say this doesn't affect binance U.S. FTX U.S. so I don't know who did that sponsorship deal was it FTX U.S.? Was it FTX parent? That sort of stuff. All of those are going to not going to just unwind immediately. I imagine like what are they going to do with the FTX brand? Are they going to keep it? Or are they going to wipe it out? Like, who knows? Yeah, these exchanges spend that money on stadiums was foolish. It's kind of hard. It's a risky strategy that is going to take a long time to pay off their essentially trying to get the 18 to 49 male American audience that has a lot of disposable income. And so this is more of a also you see FTX for 5 years and then you're ready to make the leap in a crypto. It also gets corporate America in a lot of major ways too, you know, the businesses, business people, you know, a lot of people at sweets and games and all that sort of stuff. I think I actually like these sponsorships. And I just personally, I used to work at a company Lucas oil that when they sponsored Lucas oil stadium, the NFL deal, it was a big leap for them as their company size, but it had a dramatic impact in their growth and what they were able to do from that sponsorship. People could just keep bringing up B and B, yeah, it did have a fantastic pump if we look at it. I do have a little have a nice story about it. Check your wallets 'cause B and B was so easy to transact with. You might have some dust. I had a two wallets with I was checking while Frank was talking to had two wallets.
"ftx" Discussed on Crypto Banter
"Because binance have been sitting on those $2 billion worth of FTX and BUD that they sold. They've been sitting around for you. And in Nigeria, they've had multiple opportunities to sell, they could have sold at the top at $87 and they could have solved all the way down. But only at this point that CZ comes out and says, okay, we're exiting. Why did CZ come out at this point? I think it's because he's a smart guy. He realized that they were holes in the FTX balance sheet. He realized this is a liquidity crunch and that he could hit his competitor with a knockout blow. And that's what he did. When I asked him about it on Twitter, what he said was he said, look, I'm not as smart as that. I don't actually think as much as that. But I mean, he must be smart because he runs binance. And he's going to be smarter than me because I don't run by that. So I run back to he runs binance. He must be a bit smarter than me. All right, so that's where we're at. That's the whole story. So we've now had some that's where we left last night. We've now had some reply from SPF. And what SPF is said is the following. A competitor is trying to go after us with false rumors. FTX is fine. Assets are fun. He says, if you want more details, very simple. FTX has enough to cover all client holdings. We don't invest client assets even in treasuries. We've been processing withdrawals and we'll continue to process withdrawals. It's a heavily, it's heavily regulated, even when it slows us down, we have got accounting audits, blah, blah, blah, blah, blah. He says, I'd love it if CZ binance if we could work together for the ecosystem, which is very strange, which is very, very strange, because not so long ago, Sam bankman fried tone was very different
The Breakdown with NLW
"ftx" Discussed on The Breakdown with NLW
"And of course, as a disclosure, I also help run marketing at FTX. Second, how you guys can support the show. First, rate review subscribe, all of those things actually really help people discover the show, which is good for growing the community of listeners around. Speaking of which, if you want to join the community, the best place to have discussions around these topics, other types of things you want to see on the show, macro topics, anything really at all, come join the breakers Discord. The link is in the bio and.