Crypto Guides, Knowledge & Insights

The safest country for FTX clients was Japan.

The enormous hydra FTX had branches all across the world. Among these subsidiaries, FTX Japan, seems to have fared rather well amid the breakdown of FTX and its entry into bankruptcy court. In the event that FTX Japan succeeds, the following are some lessons that other countries can take away from Japans experiences.　　In the beginning of 2022, Bahamas-based FTX bought FTX Japan, a cryptocurrency exchange with headquarters in Japan that was formerly called Liquid. While most FTX companies clients are still waiting to hear back from them, FTX Japan claims to be almost there:　　“We have put together a plan for the resumption of withdrawal service, which has been shared with and approved by the new FTX Trading management team. Development work for this plan has already started and our engineering teams are working to allow FTX Japan users to withdraw their funds.”　　　　Due to “how these assets are held and property interests under Japanese law,” the exchange claims that Japanese customers cash and cryptocurrencies wont be entangled in American bankruptcy procedures. Clients cash from the largest exchange, FTX International, with offices in Chicago, the Bahamas, and Australia are still mired in insolvency.　　What is it regarding Japan that might allow FTX clients

2022-12-15Deep Dive

CFTC considers Bitcoin, Ethereum, Tether to be commodities

In its Dec. 13 court filing against FTX founder Sam Bankman-Fried, the US Commodity Futures Trading Commission (CFTC) stated that digital assets such as Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) are commodities.　　According to the CFTC, these digital assets are commodities because they satisfy the definition of the term as defined by the United States Constitution.　　Is the CFTC Chairman of a different mind？　　While the CFTC lawsuit stated that ETH was a commodity, CFTC chairman Rostin Behnam appears to view the asset differently.　　Benham stated at a recent private cryptocurrency event at Princeton University that BTC is the only cryptocurrency that should be classified as a commodity.　　The statement contradicted the regulatory chiefs previous ones. In a CNBC interview in May, Benham stated that Bitcoin and Ethereum were suitable for classification as commodities.　　He reportedly said something similar at a New York event in October, implying that SEC chair Gary Gensler has a different opinion.　　Following the migration of ETH to the proof-of-stake network, Gensler reportedly stated that cryptocurrencies that allow staking could qualify as securities under the Howey test.　　Meanwhile, token classification remains a major issue in the United States, with regulators failing to clarify how assets can be classified. The SEC and crypto payment

2022-12-14Deep Dive

Mobile payments are now available to US clients thanks to Binance US.

Approximately 22 months after the global exchange released the option for its clients outside of the U.S. in 2021, the United States-based cryptocurrency exchange Binance US has eventually brought out its Binance Pay service.　　The service, which first launched in beta in February 2021 for peer-to-peer transactions before being made available to merchants on March 12 for fee-free payments, enables mobile users of the Binance app to instantaneously trade with almost 150 accepted currencies.　　In a blog post published on December 13 by Binance US, the company confirms that Pay transactions will not incur any transfer or gas costs and mentions that the app is now only accessible on mobile devices while getting ready to launch a web page “which will arrive in the near future.”　　While everything was going on, Binance CEO Changpeng Zhao (CZ) praised the Binance American branch and urged them to “Keep developing!”　　Users of Binance.US must upgrade to the newest version of the app, go through the identification authentication, and fill their Pay wallet in order to utilize the additional services.　　However, the tool is limited to facilitating user-to-user payments on the Binance US mobile app. Every 24 hours, users can get up to $1 million in cryptocurrency.　　The most recent

2022-12-14Deep Dive

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

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