Bitcoin (BTC) is the best financial revolution of the fashionable age. By merely shopping for and holding Bitcoin, residents are staging a peaceable protest in opposition to the indentured servitude introduced on by fiat economics. Within the course of, they’ve initiated one of many biggest wealth transfers of all time — a course of that can take many years to play out absolutely.
Bitcoin has additionally galvanized a trillion-dollar cryptocurrency and blockchain trade — a double-edged sword that’s each inspiring and horrifying. Sam Bankman-Fried, the disgraced founding father of the now-bankrupt FTX Group, is a case research of what can go fallacious when pariahs are accountable for main companies. Sam Bankman-Fried, or SBF as he’s usually referred to as, has “sincerely apologized” for defrauding traders, conning auditors and utilizing buyer funds to prop up FTX’s sister hedge fund. We haven’t even untangled the political internet that SBF finds himself in — one that may include Gary Gensler of the USA Securities and Trade Fee.
This week’s Crypto Biz continues to unpack the implosion of FTX, which, as of 10 days in the past, was the second-largest digital asset alternate on the planet.
Sam Bankman-Fried is ‘below supervision’ in Bahamas, seeking to flee to Dubai
After denying rumors that he fled to Argentina over the weekend, SBF was said to be under supervision within the Bahamas alongside FTX executives Gary Wang and Nishad Singh. A supply conversant in the matter knowledgeable Cointelegraph that it could be tough for the trio to go away the nation on their very own accord. The identical supply, who selected to stay nameless, additionally claimed that Alameda Analysis CEO Caroline Ellison was attempting to flee to Dubai to keep away from extradition to the USA. Regardless of attempting to convey a modest way of life to the general public, SBF lives in a $40 million penthouse within the Bahamas.
FTX fallout continues: BlockFi reportedly mulling chapter, SALT pauses withdrawals and deposits
The fallout from the FTX debacle was each speedy and devastating as Bitcoin lender BlockFi halted platform exercise, resulting in credible rumors that it was on the verge of chapter. In an official replace to shoppers on Nov. 14, BlockFi said it had “significant exposure” to FTX and its affiliated corporations. In the meantime, crypto lending firm SALT additionally disclosed this week that it was halting platform exercise, together with pausing all deposits and withdrawals, because of the FTX contagion. As Cointelegraph reported, SALT CEO Shawn Owen has denied allegations that his firm was “going bust.” However, issues don’t look good for SALT customers for the time being.
Salt lending goes bust.
When you presently have cash on a lending platform or “earn” platform, GET IT OFF. pic.twitter.com/eOIGG8yTrO
— Coffeezilla (@coffeebreak_YT) November 15, 2022
Genesis International halts withdrawals citing ‘unprecedented market turmoil’
On Nov. 16, the FTX contagion spilled over into the institutional markets as liquidity supplier Genesis International introduced a temporary suspension of withdrawals on account of “unprecedented market turmoil.” Genesis International isn’t a family identify in crypto, however it does present liquidity to Grayscale’s Bitcoin Investment Trust, which presently has over $20 billion in internet belongings. Genesis managed to climate the Three Arrows Capital collapse earlier this yr, having since filed a $1.2 billion declare in opposition to the failed hedge fund. It’s unclear whether or not Genesis will survive the FTX meltdown, because it had $175 million price of funds caught on the alternate.
FTX chapter freezes tens of millions price of crypto firm funds
Along with BlockFi, SALT and Genesis International, a number of corporations have been left holding the bag on FTX’s chapter. Hedge fund Galois Capital is said to have as much as $50 million price of crypto caught on FTX. New Huo Expertise, which owns the Hong Kong crypto alternate Hbit, has been unable to withdraw $18.1 million of digital belongings from FTX. Nestcoin, a Nigerian Web3 startup, has reported related issues however didn’t disclose how a lot cash was locked up on SBF’s alternate. FTX touched each nook of the cryptocurrency market, leaving tens of millions of individuals uncovered. Extra particulars will come to gentle within the coming weeks and months.
— YB (25,25) ⏳ (@YeleBademosi) November 14, 2022
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