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☆ US inflation has peaked, a recession is coming, and the FTX fiasco has shaken faith in markets, Ken Griffin says. Here are the Citadel CEO's 10 best quotes from a new interview.
▼ + stars: | 2022-11-18 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +5 min

Ken Griffin said US inflation has probably peaked, but the Fed needs to squash the threat entirely. "FTX is one of these absolute travesties in the history of financial markets. That undermines trust in all financial markets." "The confidence of a generation in financial markets has been shaken. If they don't believe or trust in financial markets, this is a huge problem.

☆ As the FTX fallout spreads, smaller cryptocurrencies may have to stop be taken off exchanges to protect consumers, Crypto.com CEO says
▼ + stars: | 2022-11-18 | by ( Phil Rosen | ) www.businessinsider.com time to read: +2 min

The CEO of Crypto.com said exchanges may have to delist smaller cryptocurrencies to protect users as FTX-related volatility spreads. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. One consequence of the fallout has been reducing the liquidity in the broader market, and various exchanges are going to have adjust accordingly. "The business generated over a billion dollars last year, and almost generated a billion dollars in revenue this year. Marszalek cautioned that the broader sector could face trouble as confidence erodes in the wake of the lastest crypto chaos.

☆ Nobel laureate Paul Krugman calls for a crypto crackdown after the FTX fiasco - and warns regulation could wipe out the industry
▼ + stars: | 2022-11-18 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Plunging prices and collapsing companies show crypto needs to be regulated, Paul Krugman says. The Nobel Prize-winning economist warned stricter rules could spell the end of the crypto industry. Krugman suggested traditional banks could dominate the crypto space if regulators crack down. The veteran economist also took aim at crypto exchanges and lenders, which are facing mounting financial and regulatory pressures. He pointed out that both crypto firms and traditional banks rely on people trusting them with their money.

Sam Bankman-Fried, founder and chief executive officer of FTX Cryptocurrency Derivatives Exchange, during a Senate Agriculture, Nutrition and Forestry Committee hearing in Washington, D.C., on Wednesday, Feb. 9, 2022. Serious red flags around Sam Bankman-Fried's FTX emerged before the now-embattled cryptocurrency exchange even launched, according to an early would-be investor. Alex Pack, now the managing partner of New York-based venture capital firm Hack VC, said he met Bankman-Fried in 2018. Bankman-Fried stepped down as CEO of FTX last Friday as the crypto company filed for Chapter 11 bankruptcy protection. In 2018, Bankman-Fried was a relatively unknown founder seeking a deal in the emerging crypto market.

☆ Justin Bieber bought a Bored Ape NFT in January for $1.3 million that's likely worth about $70,000 in the wake of the FTX collapse
▼ + stars: | 2022-11-17 | by ( Aaron Mok | ) www.businessinsider.com time to read: +2 min

Justin Bieber's bought a Bored Ape NFT for $1.3 million in January. It's now probably worth $70,000, according to NFT Price Floor. The 95% drop in valuation comes after Sam Bankman-Fried's FTX collapsed and caused crypto prices to crash. In addition to Bored Ape, some top ethereum NFT collections are also facing lower values this month. Talk show host Jimmy Fallon, model Paris Hilton, and rappers Snoop Dogg and Eminem also own Bored Ape NFTs.

☆ The fallout of Sam Bankman-Fried's FTX spreads as Gemini Earn and Genesis Global Capital suspend withdrawals
▼ + stars: | 2022-11-16 | by ( Phil Rosen | ) www.businessinsider.com time to read: +2 min

The crypto lending arm of Genesis Global Trading is suspending customer withdrawals, days after Sam Bankman-Fried's FTX filed for bankruptcy. Gemini Earn, run by the Winklevoss brothers, said it also paused withdrawals on its lending program. Genesis Global Capital is the lending partner of the Gemini Earn program, which lets users to lend their crypto to institutional borrowers. Genesis Global Capital, which is the crypto-lending arm of Genesis Global Trading, cited "the extreme market dislocation and loss of industry confidence caused by the FTX implosion," according to CoinDesk. Genesis Global Trading is capitalized separately and continues to provide full trading and custody services.

☆ Three Arrows Capital's Kyle Davies blasts FTX over the collapse of the crypto hedge fund
▼ + stars: | 2022-11-16 | 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 EmailThree Arrows Capital's Kyle Davies blasts FTX over the collapse of the crypto hedge fundKyle Davies, co-founder of Three Arrows Capital, joins CNBC's Kate Rooney to discuss the cryptocurrency hedge fund's bankruptcy proceedings amid the collapse of Sam Bankman-Fried's FTX.

☆ Watch CNBC's full interview with Three Arrows Capital's Kyle Davies on the downfall of the defunct crypto hedge fund
▼ + stars: | 2022-11-16 | 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 EmailWatch CNBC's full interview with Three Arrows Capital's Kyle Davies on the downfall of the defunct crypto hedge fundKyle Davies, co-founder of Three Arrows Capital, joins CNBC's Kate Rooney to discuss the cryptocurrency hedge fund's bankruptcy proceedings amid the collapse of Sam Bankman-Fried's FTX. Davies also addresses reports that he's trying to begin a new fund and weighs in on how FTX's and Three Arrows Capital's downfalls have impacted the broader crypto industry.

☆ Coinbase CFO says full contagion impact of FTX collapse still to show - WSJ
▼ + stars: | 2022-11-16 | by ( ) www.reuters.com time to read: +1 min

"What we are seeing now is a fallout of FTX is becoming much more like the 2008 financial crisis where it's exposing poor credit practices and is exposing poor risk management," Haas told the WSJ in an interview. It will take a few days or weeks to understand the full contagion of the event, Haas added. The collapse has fanned fears about the future of the crypto industry after FTX outlined a "severe liquidity crisis". "We're gonna see a drive towards regulation both in the U.S. and globally," Haas told the Journal. Coinbase, which many believe is poised to gain market share from FTX's collapse, recently underwent a second round of job cuts this year.

☆ Billionaire investor Charlie Munger defends the Fed's inflation fight - even if it causes a recession
▼ + stars: | 2022-11-16 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Charlie Munger defended the Fed, saying it needs to curb inflation even if the cost is a recession. Warren Buffett's right-hand man compared the US central bank to the sober person at a party. "That's what they're supposed to do," Munger continued. "They're supposed to be the one guy at the party that doesn't hang around the punch bowl getting drunk." "If you look at Japan today, you would find that the central bank has made our central bank look like a little mouse that hardly tries to do anything," he said.

☆ Sam Bankman-Fried's FTX employed a 'company therapist' who looked for 'dating options' for staff, report says.
▼ + stars: | 2022-11-16 | by ( Sawdah Bhaimiya | ) www.businessinsider.com time to read: +3 min

Sam Bankman-Fried's FTX employed a "company therapist" who helped staff with dating, Vice reported. Psychiatrist George Lerner said he was worried staff would quit due to a lack of dating options. Lerner said he would look for "dating options" for staff to improve their lives in the Bahamas. In response to Avedisian's comments, Lerner told Vice: "Dating options. He also spent 12 hours maintaining a private practice where at least 20 FTX employees sought his services.

☆ Chamath Palihapitiya said Sam Bankman-Fried once pitched him, but after the investor suggested changes like forming a board, FTX told him to get lost
▼ + stars: | 2022-11-15 | by ( Britney Nguyen | ) www.businessinsider.com time to read: +3 min

Sam Bankman-Fried once pitched Social Capital, but Chamath Palihapitiya said he "didn't make much sense." After the Zoom meeting, the firm sent FTX recommendations if things were to proceed, including the formation of a board. Palihapitiya said that FTX then told his firm to "go fuck yourself" for suggesting changes. He said Bankman-Fried pitched Social Capital while raising a $17 billion round. Palihapitiya said he still thought Bankman-Fried and FTX were in "the bucket of these guys are unbelievably arrogant and smug."

☆ A top oil analyst explains why oil is about to surge to $120 - and stay there for 2 years as Europe battles supply shocks
▼ + stars: | 2022-11-15 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

Come December, oil prices in particular will come under pressure as the European Union imposes fresh sanctions on Russia. Oil prices are about to hit $120 a barrel, and they're likely going to stay high for two years. The Energy Aspects senior analyst said that Europe is facing troubling supply issues that are unlikely to go away anytime soon. "OPEC's been very protective of making sure there's a floor to prices," Gallarati said. What's something that you think could help ease oil prices heading into 2023?

☆ BlockFi is reportedly preparing for layoffs and may file for bankruptcy as FTX's implosion weighs on the the crypto lender
▼ + stars: | 2022-11-15 | by ( Phil Rosen | ) www.businessinsider.com time to read: +2 min

BlockFi is preparing for possible bankruptcy amid "significant exposure" to failed exchange FTX, WSJ reported. BlockFi last week paused withdrawals and limited activity on the exchange, and is preparing for layoffs, per the report. FTX filed for bankruptcy last Friday after failing to line up a rescue amid a liquidity crunch. BlockFi said that it had assets in the exchange as well as obligations owed by FTX's affiliated trading firm, Alameda Research. BlockFi halted withdrawals and limited activity on its platform last week, blaming uncertainty around FTX's liquidity issues.

☆ Binance CEO says crypto industry needs clarity of regulations
▼ + stars: | 2022-11-14 | by ( ) www.reuters.com time to read: +1 min

"We're in a new industry, we've seen in the past week, things go crazy in the industry," Zhao told a gathering of G20 leaders at the summit in Bali. "We do need some regulations, we do need to do this properly, we do need to do this in a stable way." His comments come as crypto industry peers and partners outline steps to deal with the collapse of rival exchange Sam Bankman-Fried's FTX. FTX filed for bankruptcy on Friday after a week of seeing customers pull assets and Binance abandoned a rescue offer. "I think the industry collectively has a role to protect consumers, to protect everybody.

☆ How the smart money got fooled by Sam Bankman-Fried: Here's what happened to 2 hedge funds and a trader.
▼ + stars: | 2022-11-14 | by ( Dakin Campbell | ) www.businessinsider.com time to read: +8 min

3 traders tell what drew them to FTX and how they now have money stuck inside it. Wintermute, a large crypto trading firm, stopped trading on FTX, but still had some funds stuck on the US exchange, CoinDesk reported. The three traders who spoke to Insider all acknowledged having some amount of money stuck inside FTX, despite some pretty sophisticated risk management strategies. FTX's collapse was precipitated when FTX sent billions of dollars to Alameda to cover losses, The Wall Street Journal reported. Bankman-Fried may now face charges for wire fraud, the Wall Street Journal reported this week after talking with securities lawyers about how the US laws might apply.

☆ The Lehman Brothers of Crypto: Here's how the fall of Sam Bankman-Fried's FTX compares to the collapse that sparked the Great Financial Crisis
▼ + stars: | 2022-11-14 | by ( Phil Rosen | ) www.businessinsider.com time to read: +7 min

It gives maybe the clearest, most entertaining breakdown of how many, many very bad bets on subprime mortgages kickstarted the 2008 Financial Crisis. The most serious domino to fall 14 years ago was Lehman Brothers, the classic too-big-to-fail behemoth that did in fact go under. All this is a roundabout way of saying the collapse of Sam Bankman-Fried's crypto exchange, FTX, is severe and dramatic enough to warrant its own movie in a few years. Reminisce with me for a moment: In the years leading up to 2008, Lehman Bros loaded up its balance sheet with huge amounts of subprime mortgage debt. Lehman went under, and the world sunk into its worst financial crisis since the Great Depression.

☆ Crypto lender BlockFi will 'explore all options' to deal with the fallout from FTX's bankruptcy after it took a $250 million loan from the exchange
▼ + stars: | 2022-11-14 | by ( April Joyner | ) www.businessinsider.com time to read: +3 min

Crypto lender BlockFi said Monday that it had "significant exposure" to the bankrupt exchange FTX. FTX had given BlockFi an emergency $250 million loan in June after the summer's crypto crash. Even so, the company said, "the rumors that a majority of BlockFi assets are custodied at FTX are false." A crypto investor told Insider that Alameda Research requires several of those portfolio companies to hold assets with FTX. Alameda Research is not a BlockFi investor, but the firms are closely tied because of BlockFi's loan with FTX.

☆ Crypto.com CEO downplays FTX contagion fears, says he’ll prove naysayers wrong as withdrawals rise
▼ + stars: | 2022-11-14 | by ( Ryan Browne | ) www.cnbc.com time to read: +7 min

"We do not run a hedge fund, we do not trade customers' assets. Alameda Research, FTX's sister company, borrowed billions in customer funds from the exchange to ensure it had enough funds on hand to process withdrawals, CNBC reported Sunday. Bankman-Fried declined to comment on allegations of misappropriating customer funds but said its recent bankruptcy filing was the result of issues with a leveraged trading position. Asked about this Monday, Marszalek said this was just a reflection of the assets Crypto.com customers were buying. Crypto.com has 70 million users globally and made revenues of $1 billion annually in both 2021 and 2022, according to Marszalek.

☆ Billions of dollars seem to have disappeared with the collapse of FTX. How does that even happen?
▼ + stars: | 2022-11-14 | by ( Matthew Fox | ) www.businessinsider.com time to read: +4 min

The implosion of the FTX crypto exchange vaporized billions of dollars overnight. The disaster is being called crypto's Lehman Brothers moment, but Lehman had more than $600 billion in real assets that were salvageable. Sure, Lehman Brothers equity investors were completely wiped out, as will be the investors in FTX, but that's the risk equity investors assume when they buy in. According to a report from the Financial Times, FTX held less than $1 billion in liquid assets against $9 billion in liabilities. Compare that to Lehman Brothers going bankrupt with $639 billion in assets against $613 billion in debts.

☆ Between $1 billion and $2 billion of FTX customer funds have disappeared, SBF had a secret 'back door' to transfer billions: Report
▼ + stars: | 2022-11-12 | by ( Mackenzie Sigalos | ) www.cnbc.com time to read: +1 min

Sam Bankman-Fried, co-founder and chief executive officer of FTX, in Hong Kong, China, on Tuesday, May 11, 2021. As Sam Bankman-Fried's FTX enters bankruptcy protection, Reuters reports that between $1 billion to $2 billion of customer funds have vanished from the failed crypto exchange. Both Reuters and The Wall Street Journal found that Bankman-Fried, now the ex-CEO of FTX, transferred $10 billion of customer funds from his crypto exchange to the digital asset trading house, Alameda Research. The former FTX chief wrote that he "disagreed with the characterization" of the $10 billion transfer, adding that, "We didn't secretly transfer." "We had confusing internal labeling and misread it," the text message read, and when asked specifically about the funds that are allegedly missing, Bankman-Fried wrote, "???"

☆ FTX's Sam Bankman-Fried faces $8 billion shortfall
▼ + stars: | 2022-11-11 | by ( Kate Rooney | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFTX's Sam Bankman-Fried faces $8 billion shortfallCNBC's Kate Rooney joins 'Squawk Box' to report the latest details from the fallout of Sam Bankman-Fried's FTX and its impact on the crypto markets.

☆ Bahamas freezes certain FTX assets, further crippling Sam Bankman-Fried's troubled crypto trading firm
▼ + stars: | 2022-11-11 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

The Bahamas securities regulator has frozen the assets of FTX Digital Markets, an FTX subsidiary. The Bahamian securities regulator said any such actions are "contrary to normal governance." Certain assets of FTX Digital Markets — a subsidiary of Bankman-Fried's FTX crypto exchange — have been frozen by the Bahamas securities regulator, the authorities said in a media release on ThursdayAttorney Brian Simms, K.C. The Securities Commission of the Bahamas said in the announcement it's aware of statements suggesting FTX mishandled, mismanaged, or transferred the assets of clients to Alameda Research, Bankman-Fried's crypto trading firm. "Based on the Commission's information, any such actions would have been contrary to normal governance, without client consent and potentially unlawful," the Bahamian securities regulator added.

☆ 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.

☆ 'Bulldog' lawyer Thomas Lauria Lauria predicted a crypto 'liquidation boom' well before Sam Bankman-Fried's FTX filed for bankruptcy
▼ + stars: | 2022-11-11 | by ( Jack Newsham | Sindhu Sundar | ) www.businessinsider.com time to read: +14 min

Thomas Lauria runs the bankruptcy team at White & Case where clients have included Hertz and Johnson & Johnson. But Lauria told Insider that the ability of crypto companies to reorganize will depend on whether they have any real assets. Notably, when Lauria represented Hertz in its Chapter 11 case during the coronavirus pandemic, even its unsecured creditors were repaid in full. So I'm not sure that what's happening in crypto right now is really going to be a reorganization boom, but really probably more of a liquidation boom. About $10 billion of Hertz debt, when they filed, was related to financing in connection with their US fleet.

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