Crypto exchange giant FTX collapses, files for bankruptcy


Olde Hornet

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NEW YORK (AP) — It took less than a week for FTX to go from the third-largest cryptocurrency exchange in the world to bankruptcy court.

The embattled cryptocurrency exchange, short billions of dollars, sought bankruptcy protection after the exchange experienced the crypto equivalent of a bank run. FTX, the hedge fund Alameda Research, and dozens of other affiliated companies filed a bankruptcy petition in Delaware on Friday morning. FTX US, which originally was not expected to be included in any financial rescue, was also part of the company's bankruptcy filing.

CEO and founder Sam Bankman-Fried has resigned, the company said. Bankman-Fried was recently estimated to be worth $23 billion and has been a prominent political donor to Democrats. His net worth has all but evaporated, according to Forbes and Bloomberg, which closely track the net worth of the world's richest people.
“I was shocked to see things unravel the way they did earlier in the week,” Bankman-Fried wrote in a series of posts on Twitter.
 

FTX bankruptcy is ‘somebody running a company that’s just dumb-as-f—ing greedy,’ says Mark Cuban​



Billionaire tech entrepreneur and Dallas Mavericks owner Mark Cuban has offered his perspective on the implosion of crypto platform FTX late this week.

‘That’s somebody running a company that’s just dumb-as-fucking greedy.’
— Mark Cuban
Cuban, speaking on Friday at a conference in Washington, D.C., hosted by Sports Business Journal, shared the view that avarice was at the root of the downfall of onetime crypto darling Sam Bankman-Fried, whose firm, FTX Group, has filed for Chapter 11 bankruptcy.

“So what does Sam Bankman [Fried] do? He’s just ‘Gimme more, gimme more, gimme more.’ So I’m gonna borrow money, loan it to an affiliated company and hope and pretend to myself that the [FTX tokens] that are in there on my balance sheet are gonna sustain their value.”
 
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FTX Latest: Contagion Spreads to Genesis, Winklevosses’ Gemini​



(Bloomberg) -- Crypto brokerage Genesis is suspending redemptions at its lending business after facing what it described as “abnormal withdrawal requests” in the aftermath of the collapse of FTX. Genesis’ lenders include Gemini Trust Co., the cryptocurrency platform run by the Winklevoss brothers. Gemini said it has paused withdrawals on its lending program.

Meanwhile, Singapore’s state-owned investor, Temasek International, invested $200 million to $300 million in cryptocurrency giant FTX before its implosion and is preparing to write down the entire bet, people familiar with the matter said.

Michael Novogratz, the billionaire founder of Galaxy Digital Holdings, said the crypto crisis could get worse, as the industry braced for more contagion from the fall of Sam Bankman-Fried’s FTX empire.

The fallout from the crisis is threatening the future of crypto lenders like BlockFi Inc. and Voyager Digital Ltd. Digital-asset markets extended losses Wednesday morning, with Bitcoin down 2% at 9:38 a.m. New York time.
 
Well, that's one bad thing you have to deal with when it comes to an unregulated currency. Overall, crypto was basically just another scam.
 
Well, that's one bad thing you have to deal with when it comes to an unregulated currency. Overall, crypto was basically just another scam.
I have always been suspicious of crypto. A friend of mine tried to get me to buy into that. I told him NO. He tells me that I am too conservative with my money. I told him, oh well.
 
FTX's bankruptcy filings show the situation is much worse than anyone thought. From a million creditors to a stunning lack of oversight, here are the craziest details.
:popcorn:
:popcorn:
:popcorn:


https://www.yahoo.com/finance/news/ftxs-bankruptcy-filings-show-situations-131500480.html

Bankruptcy filings from FTX shed new light on how crypto exchange FTX, once worth $32 billion, lost it all. To put it mildly—it's a doozy.

Anyone who watched a few weeks ago as Sam Bankman-Fried, the CEO of the third largest crypto exchange, flailed through rumors of insolvency on Twitter only to file for bankruptcy a few days later, probably thought, "well this seems bad". To say it got worse would be an understatement.

Among the people looking on in sheer awe at the magnitude of the disaster was new FTX CEO John Ray III, who oversaw the liquidation of Enron in 2001. "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."

From the guy who presided over the cleanup of the worst financial scandal of its time, that's saying something.

The swift collapse FTX sent shockwaves across the industry and may leave an untold number of creditors—up to one million—holding the bag, including countless customers who had funds on the exchange, many of them retail clients.
 

Crypto bank Signature slides on Friday amid troubles at Silicon Valley Bank, Silvergate​


The initial move followed a big day for its crypto banking peer Silvergate Capital, which announced earlier this week that it would liquidate its bank. Its losses deepened Thursday after shares of SVB Financial
, whose Silicon Valley Bank lends to tech startups, announced a plan to raise more than $2 billion in capital to help offset losses on bond sales.

By late Friday morning, the Federal Deposit Insurance Corp had closed Silicon Valley Bank and taken control of its deposits, making it the largest U.S. bank failure since the global financial crisis.

The troubles at Silicon Valley Bank rippled across financial stocks, as investors worried about the likelihood that other banks with large bond portfolios could face similar issues, if they’re forced to sell those bonds before maturity for fundraising purposes. Treasuries have been falling for the past year as the Federal Reserve has been hiking rates.

First Republic Bank, PacWest Bancorp, Western Alliance Bancorp were among the other names whose trading was at one point halted for volatility.

Signature has said it has minimal exposure to crypto, but Silicon Valley Bank’s need to recapitalize on the heels of the Silvergate event has linked the two events in some people’s minds.
 
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