Crypto Guides, Knowledge & Insights

A timeline of the monumental failure of the crypto exchange FTX

A massive surge of consumer transfers worth billions of dollars was sparked by worries about economic uncertainty at FTX, a top site where users may buy and trade cryptocurrency. However, FTX did not have enough money to compensate sellers; as a result, transactions were completely stopped.　　Some cryptocurrency traders who used the website to transfer their cash might never get their funds refunded.　　Among the most abrupt and significant company collapses in recent memory was that of FTX. An explanation of the chain of events that led to FTXs sharp and rapid decline is provided below.　　On November 02, a significant factor in FTXs demise was its tight association with Alameda Research, a cryptocurrency investment company also established by Bankman-Fried. When news outlet CoinDesk revealed that a sizable amount of Alameda Researchs holdings consisted of FTT, a token issued by FTX that enabled people of the exchanges to receive lower trading costs, major questions regarding FTX began to emerge.　　The revelation aroused concerns regarding the capital reserves of Alameda Research and consequently FTX because FTT is difficult to convert into cash.　　On November 06, In response to the story, Changpeng Zhao, also known as “CZ,” the CEO of competing cryptocurrency exchange Binance, declared he will

2022-12-14Deep Dive

Sam Bankman-Fried, the creator of FTX, was accused of fraud and denied bail.

After the magistrates judge denied bail due to a “great” danger of flight, the former FTX CEO, who was detained in the Bahamas on Monday, bowed his head and embraced his parents.　　According to a local official, he was officially transferred to a prison in the island nation where he will first be housed in the medical section until February 8.　　The days events culminated in the 30-year- olds fall from grace in recent weeks. Before FTX abruptly failed this year, he had accumulated a fortune worth over $20 billion by riding the cryptocurrency bubble to develop into one of the biggest exchanges in the world.　　　　Bankman-Fried previously expressed regret to consumers and admitted supervisory shortcomings at FTX, but he insisted that he does not believe he is directly responsible for any criminal activity.　　Bail for Bankman-Fried, according to Bahamas authorities, would violate a treaty with the United States that mandates that suspects be detained while extradition procedures are ongoing. Bankman-Fried informed the judge that he would not give up the right to fight the extradition process and hinted that he would try to stay in the Bahamas.　　Bankman-Fried was detained Monday night after the Royal Bahamas Police Force was informed of a secret accusation

2022-12-14Deep Dive

These Crypto Firms Are Taking the Lead Following the FTX Fall

Whatever the verdict, the collapse of his digital-asset exchange FTX threatens to rock the underpinnings of the larger crypto industry.　　Fearing that their funds would be frozen in place in the event that one of these sites collapsed, cautious investors are withdrawing money from other exchanges. Following FTXs collapse, at least one large cryptocurrency company declared bankruptcy, while two more were compelled to halt some withdrawals. A big default has shaken a decentralized lending project.　　The cryptocurrency businesses and initiatives listed below are garnering attention as traders try to predict where weaknesses in the approximately ten markets may surface next.　　SOLANA　　Bankman-Fried, who backed the coin and its crypto environment, was linked to Solanas token. When contrasted to Bitcoins fall, which was closer to 15%, the tokens decrease since early November has been almost 60%. As part of a group of venture capital businesses, Bankman-Fried had promised to fund Solana projects, along with a pledge of $100 million for blockchain-based gaming developments. The value of gaming currencies in Solanas crypto ecosystem has fallen significantly since early November.　　JUMP CRYPTO　　A major cryptocurrency merchant and a significant supporter of the Solana crypto space is Jump Crypto, a division of the Chicago-based trading company Jump Trading. A dollar

2022-12-14Deep Dive

FTX Founder Sam Bankman-Fried Arrested in the Bahamas

According to a news release, the Royal Bahamas Police Force arrested FTX founder Sam Bankman-Fried.　　The arrest came after the US filed criminal charges against Bankman-Fried, according to the statement, and the country expects the US to request that the Bahamas extradite Bankman-Fried soon.　　“As a result of the notification received and the material presented therewith, it was judged appropriate for the Attorney General to seek SBFs arrest and hold him in jail in accordance with our nations Extradition Act,” Attorney General Ryan Pinder said in a statement. “When a formal request for extradition is made, The Bahamas wants to process it as soon as possible, in accordance with Bahamian law and its treaty responsibilities with the United States.”　　The United States Attorneys Office for the Southern District of New York stated in a tweet that prosecutors in the United States have indicted Bankman-Fried, albeit the indictment remained sealed.　　The allegations could include wire fraud, securities fraud, money laundering, and associated conspiracy counts, according to the New York Times.　　The US Securities and Exchange Commission also intends to file charges, according to Enforcement Director Gurbir Grewals statement.　　“We thank our law enforcement partners for their efforts in securing Mr. Sam Bankman-arrest Frieds in the Bahamas on

2022-12-13Deep Dive

According to Korean officials, Terra co-founder Do Kwon fled to Serbia to avoid being arrested.

Do Kwon, the contentious founder and CEO of Terraform Labs, is the target of an ongoing international search operation. According to South Korean officials, he left Singapore in September and is currently believed to be in Serbia.　　According to a Dec. 11 story from Chosun Media, South Korean officials investigated a tip-off regarding Do Kwons locations saying he is currently in Serbia and has been able to verify it.　　“Recently, we obtained intelligence that CEO Kwon was in Serbia, and it was found to be true,” according to an official. 　　　　According to the source, the inquiry is being conducted by the South Korean Ministry of Finance, which “is in the process of asking for cooperation from the Serbian government.” Since Terras demise, South Korean authorities have been looking for Do Kwon, but they dont appear to have experienced much success locating him until now.　　The 31-year-old is said to have relocated to Singapore at the tail end of April, shortly before shocking breakdown of the Terra ecosystem.　　Kwon was the subject of an outstanding warrant on September 14 from the Financial and Securities Criminal Unit of the Seoul Southern District Prosecutors Office for reportedly breaking South Korean capital markets legislation.　　Around at that time, Singaporean

2022-12-13Deep Dive

After the US files allegations, former FTX CEO Bankman-Fried is detained in the Bahamas.

Sam Bankman-Fried (SBF), the founder of FTX, was detained in the Bahamas on Monday at the request of American authorities, the day prior to he was originally scheduled to appear before Congress over the unexpected closure of one of the biggest cryptocurrency exchanges in the world last month.　　The 30-year-old tycoon, commonly known by his initials SBF, rode a surge in bitcoin and other digital currencies to emerge as a multi-billionaire before FTXs quick death. His arrest is a remarkable fall from grace.　　　　The Bahamas-based, 2019-launched exchange declared bankruptcy on November 11 after struggling to obtain capital to avoid collapsing as investors rushed to remove $6 billion from the site in only 72 hours. Since then, it has come to light that Bankman-Fried hid the usage of $10 billion in customer money for the support of his trading company.　　The detention happened just as Bankman-Fried was getting ready to confront his former attorneys at Sullivan and Cromwell, the new CEO of FTX, John Ray, and rival exchange owner Binance in front of Congress.　　Bankman-Fried intended to claim in the witness statements version of which was obtained by Reuters—that Sullivan s said in a statement that he will no longer be allowed to testify. The

2022-12-13Deep Dive

Shareholders are being calmed by Binance, but its assets are still a mystery.

After FTXs bankruptcy, the biggest cryptocurrency exchange in the globe is attempting to calm investors about the security of their assets. Due to its prominence, Binances achievement or failure will have a significant impact on the whole cryptocurrency market.　　　　“Its important for us to show users that the coffers are not bare, like at FTX,” Patrick Hillmann, chief strategic officer of Binance, noted.　　Although Binance just announced a promise to openness, financial and accounting experts say it still has a long road ahead to travel before it exposes enough crucial data to inspire investors trust in its future.　　Binance has made information regarding the addresses of its cryptocurrency wallets public during the span of a month. It has engaged an independent accounting company to create a “proof of reserve report” that includes a tiny amount of financial information and covers a percentage of its assets and liabilities. Additionally, it has vowed to release additional details soon.　　　　“When we say proof of reserves, we are specifically referring to those assets that we hold in custody for users,” According to Binances homepage.　　By doing that, Binance is demonstrating and proving that the exchange has sufficient resources to cover all of our users assets in full, in addition

2022-12-13Deep Dive

Sam Bankman-Fried Officially Introduced As Testimony for This Week’s Congressional Hearing of FTX

Discredited FTX founder Sam Bankman-Fried has formally gotten named as a testimony for the upcoming Congressional committee on the crypto exchanges collapse.　　In accordance with a new administration document, the ex - chief executive of the insolvent crypto firm is being named forward to give testimony as a witness at a hearing of the House of Representatives Committee of Financial Services at 10 a.m. (EST) on December 13th.　　　　Even being summoned to testify is John J. Ray III, who assumed over as CEO of FTX last month following Bankman-Fried left.　　Ray will give testimony prior to actually Bankman-Fried, who is alleged of mismanaging client funds by lending money out to other businesses, failing to adequately assess risk, and price manipulation.　　Previously this week, Democratic Congresswoman Maxine Waters, the chair of the Committee on Financial Services, prompted Bankman-Fried to participate in the proceedings　　Based on your role as CEO and your media interviews over the past few weeks, its clear to us that the information you have thus far is sufficient for testimony.　　As you know, the collapse of FTX has harmed over one million people. Your testimony would not only be meaningful to Members of Congress, but is also critical to the American people.　　It is imperative

2022-12-13Deep Dive

Genesis liquidation could force DCG bankruptcy – The Chopping Block reports

On a recent edition of Unchaineds “The Chopping Block,” Haseeb Qureshi, Managing Partner at Dragonfly Capital, highlighted the probable ramifications of Genesis going bankrupt.　　Qureshi stated on the December 3 edition of Unchaineds The Chopping Block,　　“It appears that there was a lot of funny busy in the accounting department at Genesis at a very high level.”　　According to Qureshi, the Digital Currency Groups (DCG) $1.1 billion promissory note to Genesis may be “callable” in the case of liquidation, requiring DCG to pay the notes complete value immediately.　　Qureshi also mentioned DCGs reported $2.1 billion purchase of Genesis “bad debt” in Three Arrows Capital (3AC).　　However, Qureshi pointed out:　　“DCG does not have $2.1 billion in cash to cover the promissory notes face value.”　　Qureshi presented two possible possibilities in the event that Genesis went bankrupt.　　The first scenario involves “Genesis filing [for bankruptcy] and then pulling DCG into bankruptcy,” resulting in a complicated bankruptcy procedure.　　The second possibility is that “Genesis goes bankrupt, and then the note is auctioned off at a value less than par,” but DCG is saved.　　Qureshi continued by saying that “it looks very, very likely” that Genesis will have to file for bankruptcy or go through a restructuring in which creditors agree to lower

2022-12-12Deep Dive

Nigeria records N38.9 trillion in e-payment transactions in November 2022

By: Damian Okonkwo　　Nigerias e-payments transactions attained a high record of N38.9 trillion in November 2022. According to the Nigeria Inter-Bank Settlement System (NIBSS), the country recorded its highest e-payments transactions so far in November 2022, with the total transactions rising to N38.9 trillion in November. This marked an over 12.7% increase compared to the N34.5 trillion recorded in the previous month.　　The November data also brought the total e-payments made so far in 2022 to a total of N345 trillion.　　A significant improvement was also witnessed in the e-payments transactions on a Year-over-Year (YoY) basis which rose by 50% YoY judging by the N25.9 trillion recorded in November 2021.　　The total NIP volume for November increased to N492.2 million marking a 53.8% YoY increase compared to the N319.9 million recorded in November 2021.　　Overall, Nigeria has made a significant improvement in its efforts towards running a cashless economy. The current data showed that more citizens have embraced the cashless methods for sending and receiving money within the country.　　The e-payments transactions through NIP are an account number-tied method of payment created in 2011 by NIBSS. The CBN has pushed so hard to enforce this method of payment since then such that it has become today

2022-12-12Deep Dive

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