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☆ FTX files for bankrupcty as CEO resigns
▼ + stars: | 2022-11-11 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

FTX said Sam Bankman-Fried, the 30-year-old founder of the exchange, will remain to assist in an orderly transition. Both the Justice Department and Securities and Exchange Commission are investigating FTX, The Wall Street Journal reported. Bankman-Fried has been one of the faces of the crypto industry, amassing a fortune once totaling $25 billion that has since vanished. The implosion of FTX was preceded by the decision to lend billions of dollars’ worth of customer assets to fund risky bets by Alameda, the Journal reported on Thursday. Alameda now owes FTX a staggering $10 billion that the exchange had serious trouble raising, the paper said.

☆ Crypto's Lehman moment: Here's how Sam Bankman-Fried's FTX compares to the biggest collapse of the Global Financial Crisis
▼ + stars: | 2022-11-11 | by ( Phil Rosen | ) www.businessinsider.com time to read: +7 min

Experts have drawn comparisons between the collapse of crypto exchange FTX and the fall of Lehman Brothers in 2008. Here's how the two events compare and what FTX's fall means for the broader financial system. In the years leading up to the Great Financial Crisis, Lehman loaded its balance sheet with vast amounts of subprime mortgage debt. When the "bank run" began this week, FTX didn't have the funds to meet withdrawal requests. But compared to 14 years ago, it probably won't be FTX's downfall that sparks a broader financial crisis, Allen said.

Bankman-Fried said he was in talks with "a number of players" in the crypto sector, including Justin Sun who is the founder of crypto token Tron, after a potential rescue deal with larger rival Binance fell apart. He also said his firm Alameda Research, which sources have said was partly behind FTX's problems, was winding down trading. FTX's native token, FTT , is down more than 90% this week and was attempting to steady around $3.50. Another exchange, OKX, said it had been approached earlier in the week by Bankman-Fried, who described liabilities of $7 billion that needed covering fast. Bankman-Fried said FTX.US, the U.S. operations of the exchange, however, had not been financially impacted.

☆ In about-face, Crypto exchange Binance pulls out of FTX acquisition
▼ + stars: | 2022-11-10 | by ( Elizabeth Napolitano | ) www.nbcnews.com time to read: +3 min

The crypto exchange Binance has pulled out of a deal to acquire rival digital currency company FTX just 24 hours after it announced the tentative agreement, the company said in a statement Wednesday on Twitter. Neither FTX nor the Securities and Exchange Commission immediately responded to inquiries about the deal or the reported investigation. “FTX going down is not good for anyone in the industry,” Zhao wrote. News of FTX’s insolvency has hit the platform and the wider crypto industry hard. The CoinDesk Market Index, a broad-based index of the digital asset market, is down by about 12% from last week.

☆ Rise and fall of crypto exchange FTX
▼ + stars: | 2022-11-10 | by ( ) www.reuters.com time to read: +2 min

Nov 10 (Reuters) - Cryptocurrency exchange FTX stood on the brink of failure on Thursday after a bailout from larger rival Binance collapsed. September - FTX signed a sponsorship deal with Mercedes' Formula 1 team. June 4 - FTX signed a reportedly $135 million sponsorship deal for naming rights of the Miami Heat's home court. July 1 - FTX signed a deal with an option to buy embattled crypto lender BlockFi for up to $240 million. Aug. 19 - A U.S. bank regulator ordered crypto exchange FTX to halt "false and misleading" claims it had made about whether funds at the company are insured by the government.

☆ Crypto is a 'significantly non-compliant' market and investors need better protections as FTX faces collapse, SEC chief Gary Gensler says
▼ + stars: | 2022-11-10 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

There must be stronger protections in place for investors in the crypto market, SEC Chair Gary Gensler said Thursday on CNBC. He appeared as crypto exchange FTX was on the verge of collapse in facing a potential shortfall of up to $8 billion. The crypto industry is "significantly non-compliant," but regulations "are often very clear," said Gensler. He appeared as contagion fears have been running high in the cryptocurrency market as investors watched FTX — the third-largest crypto exchange — veer toward collapse. And if we need, going to be the cop on the beat, going into court, putting the facts and the law in front of judges."

☆ Crypto exchange FTX warns of bankruptcy if it's unable to plug a shortfall of up to $8 billion: report
▼ + stars: | 2022-11-10 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

FTX CEO Sam Bankman-Fried told investors that the exchange faces a shortfall of up to $8 billion, per Bloomberg. FTX needs emergency funding or it will face bankruptcy, Bankman-Fried told investors, per Bloomberg. FTX faces a shortfall of up to $8 billion and was trying to raise $4 billion to stay solvent, Bloomberg reported. "I f---ed up," Bankman-Fried told investors, the media outlet reported. He repeatedly told investors Binance wasn't giving up on the deal, according to Bloomberg.

☆ Sequoia Capital says it's marking its investment in FTX down to $0 as a liquidity crunch threatens to put the crypto exchange into bankruptcy
▼ + stars: | 2022-11-10 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

VC giant Sequoia Capital told investors it's marking down its investment in FTX to zero. FTX had asked Binance for help amid a liquidity crunch, Binance's CEO said on Tuesday. Based on our current understanding, we are marking our investment down to $0," Sequoia added in the letter. Sequoia Capital also sought to reassure investors that its exposure to FTX was "limited." Bitcoin and most other cryptocurrencies fell Wednesday following Binance's announcement that it was walking away from the acquisition of FTX.

☆ Coinbase could benefit as crypto exchanges brace for regulatory scrutiny after FTX fallout, analysts say
▼ + stars: | 2022-11-10 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +4 min

The fall of crypto exchange FTX will likely bring regulatory scrutiny with it – and Coinbase may emerge as a winner, analysts say. “We believe today's events could potentially accelerate regulatory scrutiny on these offshore exchanges on both a national and global basis," a team of Cowen analysts said in a note this week. Retail trading will face several near-term headwinds in the aftermath of the FTX saga – lower crypto adoption, depressed prices, more regulatory scrutiny, potential FTX-related contagion. “Longer term, we expect Coinbase to benefit from clear leadership in adherence to regulatory compliance,” Cowen said. "We view Coinbase as the most regulatory compliant crypto platform globally.” That sentiment was echoed by others on Wall Street this week.

FTX head Sam Bankman-Fried said he was "exploring all the options", but fading hopes for rescue left FTX teetering. A message on the FTX website said: "FTX is currently unable to process withdrawals. "The dagger will continue to hang over the crypto market, as long as the outlook of FTX's fate remains unclear." 'CONFIDENCE CRISIS'There are also early signs that the fallout could spread beyond crypto markets, with jittery stockmarkets sliding on Wall Street overnight. Most crypto players remain bullish about the long term, but are braced for further falls in the near future.

☆ Breakingviews: FTX crash is old lesson for financial newcomers
▼ + stars: | 2022-11-10 | by ( Liam Proud | ) www.reuters.com time to read: +4 min

LONDON, Nov 9 (Reuters Breakingviews) - FTX is a young company facing an ancient financial problem. While it may be of little consolation to Bankman-Fried, the industry could end up better off for FTX’s agonies. Any investors who used trades on FTX’s exchange to hedge positions held elsewhere may now have to liquidate those other holdings, creating a wave of selloffs. While crypto is a new industry, the de-facto run that FTX experienced is a phenomenon as old as finance. Follow @liamwardproud on TwitterloadingCONTEXT NEWSCryptocurrency exchange Binance on Nov. 9 scrapped its deal to buy rival FTX.

He is seeking the remainder from other funds, including current investors in FTX such as venture capital fund Sequoia Capital, the source added. Bankman-Fried told investors that Alameda owes FTX about $10 billion, the Wall Street Journal reported. FTX had lent more than half of its customer funds to Alameda, the newspaper said. The U.S. securities regulator is investigating FTX.com's handling of customer funds and crypto-lending activities, according to a source with knowledge of the inquiry. Canada's Ontario Teachers Pension Plan, Tiger Global and Japan's Softbank are also FTX investors.

☆ SEC Chair Gensler slams "non-compliant" crypto industry amid FTX turmoil- CNBC
▼ + stars: | 2022-11-10 | by ( ) www.reuters.com time to read: +1 min

Nov 10 (Reuters) - Crypto investors need better protection in a space that is "significantly non-compliant" despite clear regulations, U.S. Securities and Exchange Commission Chair Gary Gensler said in an interview to CNBC on Thursday. Investors around the globe are getting hurt," he said while calling for cooperation from crypto companies. Gensler has for long argued the "Wild West" of crypto should be more actively regulated. Months ago, the SEC began a probe of FTX.com's handling of customers funds and its crypto lending activities. Reporting by Niket Nishant in BengaluruOur Standards: The Thomson Reuters Trust Principles.

FTX token - which gives holders discounts on FTX trading fees - was last trading at $5.33, having slumped by more than three-quarters. Tuesday's developments left FTX investors scrambling to figure out what the deal with Binance means for their investment in FTX, according to people familiar with the matter. In late 2019, Binance invested in FTX, then a far smaller exchange, before exiting the investment in July last year. By then FTX had mushroomed into a growing rival to Binance, which dominates the crypto industry with over 120 million users. "A *huge* thank you to CZ, Binance," Bankman-Fried wrote.

☆ Binance is walking away from its deal to rescue Sam Bankman-Fried's collapsed FTX crypto exchange, citing issues 'beyond our ability or control to help'
▼ + stars: | 2022-11-09 | by ( Carla Mozée | ) www.businessinsider.com time to read: +2 min

Crypto exchange Binance walked away from a deal to acquire rival FTX, reports said Wednesday. The issues at the exchange founded by Sam Bankman-Fried "are beyond our control or ability to help," Binance said. Binance CEO Changpeng Zhao said FTX asked for help amid a "significant liquidity crunch". "In the beginning, our hope was to be able to support FTX's customers to provide liquidity, but the issues are beyond our control or ability to help," Binance said. Before striking a deal with Binance, FTX had sought help from other large exchanges Coinbase and OKX but it was turned down, according to the Coindesk report.

☆ Sam Bankman-Fried deleted his tweet saying FTX 'assets are fine' on the day he announced his Binance deal
▼ + stars: | 2022-11-09 | by ( Britney Nguyen | ) www.businessinsider.com time to read: +3 min

The billionaire founders of cryptocurrency exchanges FTX and Binance sparred on Twitter Sunday. FTX founder Sam Bankman-Fried tweeted and then deleted that FTX and its assets "are fine." Bankman-Fried announced Tuesday that FTX came to an agreement to be acquired by rival Binance. Bankman-Fried also changed his tone from blaming Binance, to thanking it, Zhao, and FTX supporters in the announcement. When Bankman-Fried tweeted that FTX and its assets are "fine" on Monday, he was one of the wealthiest people in the world, sitting on a net worth of $16 billion.

☆ Retail investors are rushing in to buy the dip in crypto-linked stocks after FTX drama sparks big sell-off in digital assets
▼ + stars: | 2022-11-09 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

Retail investors have been snapping up crypto-linked stocks and ETFs during the latest plunge sparked by FTX's collapse. Net purchases of the long-positioned ProShares Bitcoin Strategy ETF and the ProShares Short Bitcoin Strategy ETF jumped on Tuesday. "Retail are buying the dip again," the firm said about shares of crypto-linked companies and exchange-traded funds in a note published Wednesday. He said net purchases by retail investors of the long-positioned ProShares Bitcoin Strategy ETF and the ProShares Short Bitcoin Strategy ETF jumped by a similar magnitude on Tuesday, by $1.4 million and US$1.1 million, respectively. Among shares of cryptocurrency companies active among retail investors, crypto trading platform Coinbase fell 8.5%, Robinhood slid nearly 10%, and Block lost more than 7%.

Binance is backing out of its plans to acquire FTX, the company said Wednesday, leaving Sam Bankman-Fried's crypto empire on the verge of collapse. It is unclear who is next in line to buy the beleaguered crypto exchange. The failed acquisition of the world's fourth-largest exchange is the latest chapter in a shocking collapse that's rocked the crypto world. He also deleted tweets from the prior day indicating that FTX was "fine" and that the exchange had enough assets to cover clients' holdings. Earlier on Wednesday, Zhao told Binance employees in a memo that he "did not master plan" the collapse of FTX.

☆ Binance backs out of FTX.com acquisition
▼ + stars: | 2022-11-09 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBinance backs out of FTX.com acquisition'Pivot' podcaster Kara Swisher joins Eamon Javers and the 'CNBC Special: Taking stock' to discuss why Binance's proposed acquisition of rival FTX.com broke down and what happens to FTX from here.

☆ How crypto giant Binance came to bail out its biggest rival, FTX, days after their billionaire founders got into a very public spat on Twitter
▼ + stars: | 2022-11-09 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

The CEO of Binance tweeted on Sunday the exchange would be liquidating all its FTT tokens due to "recent revelations." On Monday, FTX head Bankman-Fried tweeted "a competitor is trying to go after us with false rumors." Bankman-Fried announced on Tuesday his exchange FTX is to be acquired by Binance. The most recent brawl started on Sunday when Zhao tweeted Binance would be liquidating all its FTT tokens — a crypto token native to FTX — due to "recent revelations." The former announced the deal with Binance, and Zhao said Binance "signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch."

A representative for FTX did not immediately respond to requests for comment on the deal or the SEC investigation. FTX and Binance did not disclose the terms of their agreement, and markets face fresh uncertainty over whether it will proceed. REUTERS/Dado Ruvic/Illustration 1 2Prior to the Binance proposed deal, Bankman-Fried approached cryptocurrency exchange OKX on Monday morning about a deal, but the exchange declined to move forward. "It has been a truly a devastating year for the industry," said Ryan Wong, a senior researcher at crypto exchange Huobi. "This could be a major source of risk to crypto markets," Lai wrote.

☆ U.S. probes FTX over handling of client funds - Bloomberg News
▼ + stars: | 2022-11-09 | by ( ) www.reuters.com time to read: 1 min

Nov 9 (Reuters) - Two top U.S. financial regulators are probing whether crypto exchange FTX.com properly handled customers' funds, and its relationship with other parts of Sam Bankman-Fried's crypto empire, Bloomberg News reported on Wednesday. The Securities and Exchange Commission and the Commodity Futures Trading Commission are probing FTX.com’s relationship with its American counterpart FTX U.S. and Bankman-Fried's trading firm Alameda Research, the report said. The report, citing people familiar with the matter, comes a day after crypto exchange Binance said it would acquire FTX.com. The SEC and FTX.com did not immediately respond to Reuters' requests for comment. Reporting by Niket Nishant in Bengaluru; Editing by Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

☆ FTX faces federal probes on handling of client funds as asset shortfall could top $6 billion, report says
▼ + stars: | 2022-11-09 | by ( Brian Evans | ) www.businessinsider.com time to read: +2 min

FTX is facing down federal probes, which began months ago, into how it handled client funds, sources told Bloomberg. Both the Securities and Exchange Commission and the Commodity Futures Trading Commission are looking into the trading platform. Binance is re-evaluating its takeover of FTX as the gap between liabilities and assets could top $6 billion. Meanwhile, Binance is highly unlikely to move forward with its proposed acquisition of FTX amid solvency worries, Coindesk reported Wednesday. Bloomberg reported separately that Binance executives looking into FTX's financials found a massive gap between liabilities and assets that could exceed $6 billion.

☆ How Binance's plan to buy FTX unfolded in a matter of days
▼ + stars: | 2022-11-08 | by ( Hannah Lang | ) www.reuters.com time to read: +3 min

Here are the key developments in the longstanding relationship between Binance and FTX:* December 2019: Binance invested an undisclosed amount in FTX, which was then a derivatives exchange, CoinDesk reported. As part of that exit, Binance received the equivalent of $2.1 billion in Binance's stablecoin and FTT, according to Binance CEO Changpeng Zhao. loading* Nov. 2: Crypto news website CoinDesk reported on a leaked balance sheet from Alameda Research, FTX CEO Sam Bankman-Fried's crypto trading firm, which maintains close ties with FTX. * According to CoinDesk's report, $3.66 billion of Alameda's $14.6 billion in assets are held in “unlocked” FTT. The firm has more than $10 billion in assets that are not reflected in the CoinDesk report, she said.

loadingHe said Binance, the world's biggest crypto exchange, will conduct due diligence in the coming days as the next step toward an acquisition of FTX.com. By then FTX had mushroomed into a growing rival to Binance, which dominates the crypto industry with over 120 million users. FTX token - which gives holders discounts on FTX trading fees - was last trading at $5.33, having slumped by more than three-quarters. On Sunday, Zhao said his firm would liquidate its holdings of the FTX token due to unspecified "recent revelations." "A *huge* thank you to CZ, Binance," Bankman-Fried wrote.

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