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☆ Crypto CEO warns his industry faces 2008-style crisis
▼ + stars: | 2022-11-11 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

New York CNN —The reeling crypto industry faces a 2008-style crisis that will lead to a much-needed regulatory crackdown, crypto CEO Changpeng Zhao warned on Friday. We’ve been set back a few years,” Zhao, the CEO of cryptocurrency exchange Binance, said during a conference in Indonesia. “Regulators, rightfully, will scrutinize this industry much, much harder, which is probably a good thing to be honest,” Zhao said. The Binance CEO accused FTX of “misappropriating” user funds. Bankman-Fried, the 30-year-old crypto wunderkind behind FTX, said on Friday he’s “really sorry” about what happened at his firm.

☆ Crypto: What's next as FTX collapse triggers 'Lehman moment'?
▼ + stars: | 2022-11-11 | by ( Julia Horowitz | ) edition.cnn.com time to read: +7 min

And can the beaten-down crypto industry bounce back? What’s clear is that the fallout from the FTX crisis injects significant volatility into the crypto ecosystem. “Thank God!”Can the crypto industry survive? “In the short term, this is going to be really, really bad for the crypto industry,” said Jog of Sei Labs. Fok said he expects the FTX collapse will push institutional investors away from the crypto space just as they had been warming up to it.

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.

It culminated on Wednesday, with Binance pulling out of its deal and throwing FTX's future into uncertainty. Bankman-Fried told Reuters on Tuesday that "I'll probably be too swamped" to do interviews. Voyager filed for bankruptcy protection the following month, with FTX's U.S. arm paying $1.4 billion for its assets in a September auction. Daily withdrawals normally totaled tens of millions of dollars, Bankman-Fried told his employees. Bankman-Fried signed a non-binding letter of intent for Binance to buy FTX’s non-U.S. assets.

☆ Crypto is in chaos as FTX files for bankruptcy
▼ + stars: | 2022-11-10 | by ( Allison Morrow | ) edition.cnn.com time to read: +7 min

By Friday morning, FTX said Bankman-Fried had resigned as CEO and that the firm was filing for bankruptcy. Failures are not uncommon in the murky, largely unregulated world of crypto, but FTX is not your average crypto startup. Namely, that the bulk of its assets are held in FTT, a digital token minted by Alameda’s sister firm, FTX. On Sunday, the CEO of Binance, FTX’s much larger rival, said his company was liquidating $580 million worth of FTX holdings. After a chaotic week, FTX filed for bankruptcy.

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.

☆ Binance-linked blockchain hit by $570 million crypto theft
▼ + stars: | 2022-10-07 | by ( Jennifer Korn | ) edition.cnn.com time to read: +2 min

A Binance-linked blockchain was involved in a $570 million hack late Thursday, a company spokesperson confirmed to CNN Business on Friday. Binance temporarily suspended its blockchain network, BNB Smart Chain, “due to irregular activity,” the company tweeted Thursday. The company said Friday that hackers had stolen two million BNB cryptocurrency tokens – which are issued by Binance – worth about $570 million at the time. Binance CEO Changpeng Zhao initially tweeted that an estimated $100 million worth of crypto had been stolen. This latest attack put the BNB blockchain offline for about nine hours.

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