Cryptocurrency News TheBitTimes.com

The fortune of the founder and head of the largest crypto exchange, Binance, Changpeng Zhao, decreased by $12 billion amid problems with the trading platform. The Bloomberg Billionaires Index cut its earnings estimate for the Binance cryptocurrency exchange by 38% amid falling platform sales. As a result, Zhao’s wealth decreased by $11.9 billion to $17.3 billion. In addition to losing his fortune, Zhao reset the wealth of the founder of the FTX crypto exchange, Sam Bankman-Fried. In November 2022, the founder of Binance announced that he was liquidating the token associated with FTX following a report that Bankman-Fried’s hedge fund Alameda Research also held a large position in it. You might also like: Scaramucci predicts Sam Bankman-Fried will be ‘skinned alive’ at trial Some FTX clients rushed to withdraw money, and the exchange could not cope with the withdrawal surge. Less than a week later, the company filed for bankruptcy. This has seen Bankman-Fri...

The FTX bankruptcy estate recently staked approximately $122 million in SOL tokens and around $5 million in ETH. The FTX bankruptcy estate has staked an impressive sum of approximately $122 million in Solana (SOL) tokens. The information came to light when on-chain data indicated that a wallet identified as FTX’s shifted the SOL tokens to Figment, a staking validation entity known for serving institutional clientele. Simultaneously, FTX’s estate made another move, staking about 3,200 Ethereum (ETH), which is equivalent to an estimated $5 million. Both crypto wallets are associated with Alameda Research, identified as the sister trading firm to FTX. For those unfamiliar with the term, staking in the crypto realm involves securing a specified quantity of tokens for a set duration. As a reward for this commitment, participants often receive supplementary coins. This procedure is pivotal in fortifying proof-of-stake networks, which include Ethereum and Solana among others....

FTX founder Sam Bankman-Fried’s criminal trial for fraud resumed at 10 a.m. New York time, as Federal Judge Lewis A. Kaplan moved to conclude jury selection and hear opening statements from attorneys on both sides. Senior District Judge Lewis A. Kaplan is presiding over the case, and Assistant U.S. Attorney Nicolas Roos is leading the prosecution. The defense is being led by Mark Cohen. Here are the latest live updates from inside the courtroom on day 2:  Judge Kaplan wrapped up initial juror picks around 11:20 a.m. ET, with 12 jurors and 6 alternates selected. Opening statements begin with 40 minutes for the defendant, and 25 minutes for the prosecutors.  Opening statement from the prosecutor Assistant U.S. Attorney says Bankman-Fried lied to the world as he built his crypto empire at FTX. Only his close friends and girlfriend knew the truth about what was happening.  Prosecutor says the defendant opened bank accounts with fake records and stole FTX customer depos...

Michael Lewis, the author of “The Big Short,” says the disgraced crypto entrepreneur was exploring the legality of such a move. Sam Bankman-Fried (aka SBF), founder and former CEO of the now-bankrupt cryptocurrency exchange FTX, was considering paying Donald Trump $5 billion not to run for re-election. In an interview with CBS, Michael Lewis, the author of “The Big Short” and “Going Infinite: The Rise and Fall of a New Tycoon,” noted that SBF was not sure at the time whether that number came directly from Trump. However, the disgraced crypto entrepreneur was not worried about the number but about the legality of this move. “He [SBF] got one answer, yes. The question Sam had was not just, “Is $5 billion enough to pay Trump not to run,” but “Was it legal?” Michael Lewis. You might also like: FTX ramps up asset recovery ahead of Bankman-Fried’s trial According to an excerpt of Lewis’ forthcoming book ...

Coinbase recently considered buying FTX Europe, highlighting the growing significance of crypto derivatives in global trading strategies. In the crypto trading space, derivatives have grown in significance, outpacing the popularity of spot trading. This trend is demonstrated by Coinbase’s recent interest in acquiring FTX Europe on Sept. 22, further underlining the expanding role of derivatives in global crypto trading strategies. Derivatives, which are intricate financial instruments taking their value from underlying assets like Bitcoin and Ether, have become the powerhouse in the crypto trade. Data from Kaiko Research highlights that in the second quarter of 2023, derivatives volume was a staggering six times more than spot volume. While spot trading centers on an asset’s current price, derivatives have been capturing the limelight. #Coinbase is considering the acquisition of #FTX Europe to expand its #Crypto derivatives business.#CryptoCom is also interested in acqui...

A Matrixport analyst envisions a scenario, where Ethereum price can “materially drop lower” by the end of the year. Ethereum (ETH) price can go down to the $1,000 mark should the cryptocurrency decline below $1,500 amid a possible sell-off initiated by FTX creditors. A Matrixport analyst said in a recent research report that FTX creditors could trigger an “overhang for altcoins for the rest of the year” if they get a green light from a US court. “A decline below $1,500 could bring back the idea that Ether could decline to $1,000 — a level that would appear justified based on the revenue projection from the Ethereum ecosystem.” Matrixport analyst The analyst notes ETH at current prices is below the 50d MA, which is a bearish sign. Besides, Ethereum is underperforming Bitcoin as the trend (20d) MA shows ETH/BTC ratio is decreasing, the analyst added. As of press time, ETH is trading at $1,611, according to CoinMarketCap data. Solana funding r...

FTX’s bankruptcy estate manages a $7 billion portfolio that includes Solana, Bitcoin, and the Bahamas real estate , as court filings reveal a potential platform relaunch amidst staggering customer claims. Amid legal entanglements and looming court appearances, FTX finds itself contending with a bankruptcy estate valued at roughly $7 billion, according to recent court documents. These filings also offer a roadmap for the exchange’s potential reboot, named tentatively as “FTX 2.0.” Court filings FTX’s asset breakdown and legal quagmires Documents filed with the court indicate that FTX’s bankruptcy estate has managed to amass a wide range of assets. This includes around $1.16 billion in Solana (SOL) tokens and $560 million in Bitcoin (BTC). The estate’s liquidity has $1.5 billion in cash, on top of the $1.1 billion it had as of November last year. The estate also values its holdings in various other cryptocurrencies at $3.4 billion as of the end of Au...

Disgraced former FTX CEO Sam Bankman-Fried has been told that he m US t remain in jail while he prepares for his upcoming trial, reports Reuters. Bankman-Fried saw his $250 million bail revoked last month amid claims that he had sought to interfere with witnesses and influence proceedings. The former billionaire appealed almost immediately with his team arguing that he couldn’t properly prepare his defense due to the “inhumane” and “dangerous” conditions inside the Brooklyn-based Metropolitan Detention Center. Court papers specifically claim that the few hours a day Bankman-Fried has been allotted to review evidence on a laptop are insufficient. They also claim he’s lost valuable preparation time due to him being required to take part in prisoner counts . However, these protests fell on deaf ears when the 2nd US Circuit Court of Appeals made its decision on Wednesday. The court did offer some hope, stating that it would ask the next available three-judge panel to consider Bankma...

The Federal Reserve (Fed) has taken enforcement action against Farmington State Bank, based in Washington, and its parent company, FBH Corporation. This action follows undisclosed changes to the bank’s business plan. Previously known as Moonstone Bank, the bank had close ties to FTX’s trading division, Alameda Research. In a statement on Aug. 17, the Fed clarified that this action aims to ensure a controlled winding down of the bank’s operations. This move is vital to protect the bank’s depositors and the broader Deposit Insurance Fund. Additionally, Farmington and FBH are now explicitly prohibited from distributing dividends or capital, reducing cash assets, or pursuing certain ventures without prior approval from their supervisory authorities. Today’s #EnforcementActions:https://t.co/bTmGeUBJdP — Federal Reserve (@federalreserve) August 17, 2023 Acknowledging the Fed’s action s, Farmington State Bank released a statement...

FTX Hits Back At Creditors For Seeking Control Over Assets According to a filing in the court on August 9, FTX responded to a statement by the UCC in response to the draft plan of reorganization and term sheet. FTX blasted the UCC for seeking control over debtors’ assets after it called on debtors to invest nearly $2.6 billion cash reserves in short-term Treasuries to offset professional fees of up to $330 million. advertisement Disputes arise between the UCC and debtors as creditors allege a lack of consultation and FTX losing most funds amid the bankruptcy filing. However, SEC is frustrated about lack of involvement and unprofessional conduct from many members of the UCC. “The Debtors hope that the members of the Committee will constructively engage in these negotiations and actually sit down in person alongside the Ad Hoc Committee, customers and stakeholders holding other views in an effort to achieve the optimal result for all those impacted by F...

Media Outlets Appeal Against Customer Names Redaction Earlier this month, Bankruptcy Judge John Dorsey ruled that FTX can keep its individual customers’ names secret as it could expose them to identity theft and other scams. Typically, bankrupt companies are required to disclose their creditors and debt amounts they hold, including individual customers, but the US bankruptcy law contains sections preventing details on the basis of risk of identity theft or other injuries. advertisement FTX debtors and creditors argued customers of crypto lender Celsius Network faced scams and identity theft after its customers’ names were revealed. On Friday, the media outlets filed a notice of appeal in the Delaware Bankruptcy Court to appeal Judge John Dorsey’s ruling to permanently redact FTX customer names from the bankruptcy case. Attorneys for Bloomberg and other media outlets argue FTX bankruptcy is not entitled to disclosure requirements exception. Thi...

Details About the FTX Verdict As revealed in a report by the Associated Press, the ruling follows a two-day hearing in which media outlets and the United States Bankruptcy Trustee opposed FTX’s plea to keep customer and creditor names hidden. This decision marks a significant development in the intersection of privacy , finance, and cryptocurrency, as it sets a precedent for customer protection in the event of future bankruptcies. FTX, a once prominent player in the crypto market, filed for bankruptcy after facing financial difficulties last year. As part of its bankruptcy proceedings, the exchange sought to protect the privacy of its customers by keeping their identities confidential. FTX argued that disclosing customer names could expose their personal information and potentially lead to misuse. At the time, some media outlets contested the notion that potential risks to customers outweigh the public’s right to access bankruptcy filings and information. The outlets...

FTX lawyers have filed a lawsuit against former FTX chief Sam Bankman-Fried (SBF), co-founder Zixiao Wang, and executive Nishad Singh. The lawsuit is related to the $220 million acquisition of Embed, a stock-clearing platform. The lawyers allege that there was a lack of due diligence before the acquisition process. The court overseeing the proceedings authorized the sales of Embed and other FTX assets after the company filed for bankruptcy. But the highest bidder for the platform only made a $1 million offer. The lawyers noted in the filing that, “Embed’s vaunted software platform was essentially worthless.” During the proceedings, a total of twelve entities expressed interest, the largest of which was $78 million. However, after a thorough look around, all except one refused to submit a final bid. That sole entity was Embed’s founder and former CEO, Michael Giles. Giles made an offer of $1 million to regain ownership of Embed. Did FTX insiders know about the insolvenc...

Less than a day back, FTX founder Sam Bankman-Fried was charged for bribing a Chinese official. In a new indictment, the U.S. Department of Justice alleged that he paid $40 million as a bribe. In fact, the indictment claimed that accounts belonging to Alameda Research were the target of a freezing order from Chinese police “in or around” November last year. Retrospectively, the bribe was paid to unfreeze the accounts. The latest development only adds to the piling charges against the FTX founder. According to Bloomberg News’ Annabelle Droulers, “He’s now facing 13 criminal counts and faces more than a century behind bars if convicted.” Sam Bankman-Fried already was facing more than a century behind bars if convicted of all the charges outlined against him. The addition of a charge that he bribed Chinese officials once again raises the stakes. More here: https://t.co/dtj8KddWcR pic.twitter.com/b4RPPApMha — Bloomberg Crypto (@crypto) March 29, 2023 Also Read: FTX ’s Gary...

The collapse of the FTX exchange was one of the biggest catastrophic events of 2022. Ever since the fall, the bankruptcy lawyers and the investigators have been trying their best to pool the funds to repay the customers who lost millions. The attempt to get their hands on the Robinhood shares didn’t turn out to be successful. According to the latest report by the New York Times, $400 million worth of investments by Sam Bankman-Fried have been sitting in a JP Morgan Chase account. The investment by SBF in Modulo Capital, an obscure hedge fund, is worth $400 million, according to people familiar with the matter. Also read: Tether USDT’s Market Cap Shot up by $1 Billion in a Day One person familiar with the standard event stated that the founders of Modulo are in negotiations with FTX prosecutors. If FTX turns out to be successful in receiving the $400 million, it would push them several steps ahead and require the effort of recovering billions to pay the customers and inves...

The cryptocurrency industry along with the entire globe witnessed the downfall of the FTX empire and its founder Sam Bankman-Fried. Currently, under house arrest, the court requires the former CEO to abide by certain rules. Contesting the same, SBF’s attorneys made a new plea to the Judge. According to a recent court filing, the former FTX CEO intends to “resolve the outstanding issues” associated with his bail conditions. Elaborating on the same, SBF’s counsel, Mark Cohen wrote, “The parties would like to continue these discussions, which we are optimistic will lead to an agreement between the parties in the next few days and eliminate the need for further litigation.” Earlier this week, U.S. District Court Judge Lewis Kaplan altered SBF ’s bail requisites. The Judge banned the troubled CEO from contacting former or current employees of both FTX and Alameda. He was forbidden from employing Signal and other messaging applications to do so. ...

The current whereabouts of the funds remain unknown. According to a Bloomberg report published on Dec. 27, the U.S. Department of Justice has launched an investigation into the whereabouts of approximately $372 million in missing digital assets from now-defunct cryptocurrency exchange FTX and FTX US. On Nov. 12, amidst bankruptcy and internal collapse, FTX warned customers of abnormal wallet activity regarding at least 228,523 Ether (ETH) transferred out of the exchange from an unknown perpetrator.  On Nov. 11, or the night of the company's bankruptcy filing, FTX US' general counsel Ryne Miller confirmed that the transactions were unauthorized and that the subsidiary exchange had moved all crypto to cold wallets as a precaution. On Nov. 20, Blockchain forensics firm Elliptic wrote that the unauthorized transfers amounted to $477 million, and the unknown perpetrator swapped the stolen Ether for RenBTC, before being bridged to Bitcoin through the RenBridge service. Ren was acqu...

Peter Smith said the hardest thing to trace was the funds that enter the banking system. Blockchain.com's founder and CEO, Peter Smith, believes on-chain analytics will play a significant role in locating the missing FTX funds, though it will have its limitations. On Dec. 20, Fox Business host Liz Claman said that blockchain’s selling point was that it makes crypto transactions transparent and traceable, asking Smith the question of what it could trace in the case of FTX’s missing customer funds. Smith said that blockchain sleuths have already done a fair bit of work in chasing the money trail, adding that it could in fact be the banking system where the trail could turn cold: “The most challenging thing for [blockchain analytics] firms working on this today is when money moves off chain and into the banking system because they’re no longer able to track it.” He cited an example of when Sam Bankman-Fried or associates purchased real estate as that would have originated from a ban...