Crypto Guides, Knowledge & Insights

Binance Allocates Another $1B for Its Crypto Recovery Fund

Binance, a cryptocurrency exchange, has allocated another $1 billion to its industry recovery fund, effectively increasing the funds size to more than $2 billion.　　Binance CEO Changpeng “CZ” Zhao announced the additional allocation on Friday.　　The increase comes just one day after CZ revealed that Binance is aiming for $1 billion for its crypto recovery fund. Aptos Labs, Jump Crypto, and other well-known cryptocurrency companies have joined Binances initiative and will contribute $50 million to the fund.　　The recovery fund would be used to purchase distressed crypto assets and provide assistance to the industry. Since the beginning of the year, the crypto market has experienced a massive decline, resulting in the closure of several crypto firms.　　The cryptocurrency market remains volatile, with BTC trading 1.6% lower during the day, hovering around $16,400 at the time of writing.As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!　　Scan the QR Code to get more news!

2022-11-25Deep Dive

FTX Hires Ex-Regulators to Investigate Firm’s Collapse

Former senior U.S. regulators have been hired to help untangle the mess at cryptocurrency exchange FTX, whose recent collapse has raised concerns about a lack of regulatory oversight.　　In its first hearing in Delaware bankruptcy court on Tuesday, a lawyer for FTX stated that the company has hired former enforcement chiefs from the Securities and Exchange Commission and the Commodity Futures Trading Commission, both of whom are now partners at law firm Sullivan s new CEO in determining what went wrong.　　FTX has hired Steven Peikin, who was co-director of the SECs enforcement division from 2017 to 2020, and James McDonald, who was director of enforcement at the CFTC from 2017 to 2020.　　Another prominent FTX hire is Nicole Friedlander, who from 2008 to 2016 served as chief of the complex frauds and cybercrime unit at the U.S. attorney‘s office for the Southern District of New York, one of the nation’s most influential federal law-enforcement agencies. Ms. Friedlander is also a Sullivan s priorities will most likely include document preservation.　　According to James Bromley, counsel to FTXs new management and a partner at Sullivan s demise and will engage with regulators in the United States and around the world. The team of former regulators

2022-11-25Deep Dive

Genesis employs a professional in bankruptcy avoidance

The corporation has hired investment banking firm Moelis s significant to observe that Voyager Digital also employed Moelis s report dated November 21 suggesting the contrary. 　　The spokesman said, “Genesis continues a constructive and fruitful dialogue with its creditors. According to reports, Genesis is attempting to raise between $500 million and $1 billion from investors to close a funding gap brought on by ”extraordinary market turbulence and the collapse of the crypto trading FTX. 　　　　On its balance sheet, the cash strapped lending institution has existing debts worth $2.8 billion, based on a story that was released by Bloomberg on November 22. The corporation has lent to “associated parties,” which would include both its holding company, Digital Currency Group, and its subsidiary and loan unit, Genesis Global Trading, for almost 30% of its total lending.　　Digital Currency Groups CEO, Barry Silbert, asserts in a recently circulated letter that the business owes Genesis Global Capital $575 million, with final payment in May 2023. 　　Since the closure of FTXs exchange on November 11, Genesis, Grayscale Ventures, and its parent company, Digital Currency Group, have been the center of attention. The spread has caused others to worry that all these businesses may fail as the

2022-11-25Deep Dive

Germany's Bitpanda is the first "retail" cryptocurrency marketplace in Europe.

The cryptocurrency exchange that has its offices in Austria is now officially able to advertise its services to people who live in Germany as a result of the obtaining of this license. Additionally, according to Bitpanda, they were the first merchant bitcoin exchange to be established in Europe, making them very noteworthy. 　　People are being more attentive to cryptocurrency exchanges that function beyond a countrys jurisdiction and are devoid of regulations as a direct result of the failure of the FTX cryptocurrency exchange. As a result, a sizable proportion of exchangers are attempting to secure licenses in various countries so that they can demonstrate that they are a reliable company.　　　　Since its premises are in Austria, Bitpanda asserts that it was the first “European” merchant bitcoin marketplace to obtain the license. The reason for this is because Austria is regarded as being in Europe.　　Since FTXs demise, the issue of how to regulate and license bitcoin exchanges has been on the top of the public discourse. In particular, it is debatable if or not bitcoin exchanges need to be registered. 　　The BoE intends to build up a “regulatory sandbox” to determine how to effectively manage exchanges in a bid to understand how

2022-11-25Deep Dive

FTX Contagion Revives Dreaded 2022 Crypto Knell

The phrase “halting withdrawals” in the crypto industry in 2022 is like black smoke billowing out of a building. Damage is unavoidable.　　Technically, it means that a crypto exchange or lender has barred customers from receiving their money or digital tokens, usually due to a lack of assets on hand to meet redemption requests. The likely outcome is that the company will be difficult to recover from the devastation. In many cases, the next step is to file for bankruptcy.　　Now, the rapid dismantling of former billionaire Sam Bankman-crypto Frieds empire, which included the FTX exchange and the crypto trading firm Alameda Research, has triggered a new wave of crypto exchanges and lenders suspending customer withdrawals in recent weeks.　　The collateral damage adds to the list of casualties from the Terra blockchains dramatic collapse earlier this year, which accelerated or directly led to the failures of crypto firms such as Celsius Network, Babel Finance, Voyager Digital, and Three Arrows Capital.　　The disease has the potential to spread quickly. When one company abruptly refuses redemption requests, another faces a liquidity crisis. Market jitters frighten investors, prompting more withdrawal requests and exacerbating the panic. This is the pattern in digital asset markets, where there is no

2022-11-24Deep Dive

Police in Singapore have issued a warning about FTX phishing schemes.

According to a local news outlet, Channel News Asia, on November 19 the police gave a notice regarding a website that asked FTX users to log with using their login details and purported to be run by the US Department of Justice. The website is targeted towards local investors who are negatively affected by the collapse of FTX, and consumers are given the impression that they “would be able to withdraw their money after paying legal charges.”　　The website, according to the police, was a phishing attempt designed to fool those who werent aware of the scam into disclosing their personal information. Local authorities have warned individuals to be aware of such content while browsing the internet as fake online articles that promise cryptocurrency auto trading programs in the country appear to have thrived recently.　　　　Tan Chuan-jin, the speaker of the Singaporean parliament, is one of the well-known Singaporean politicians who frequently appears within those stories. Even though Singapores police have previously warned the people about cryptocurrency scams, recent market developments have made consumers more vulnerable to attacks than they were previously. One million creditors and shareholders are expected to have suffered as a consequence of FTXs insolvency.　　They might collectively stand to

2022-11-23Deep Dive

FTX Acknowledges "Unauthorized Access" to Certain Assets and Collaborates with Law Enforcement

Ryne Miller mentioned on Twitter that in accordance with a declaration from John Ray, the interim CEO, “unauthorized access to certain assets has occurred,” and that “we are in the process of removing trading and withdrawal functionality and moving as many digital assets as can be identified to a new cold wallet custodian.”　　Ryne indicated that FTX is now working with police agencies and other relevant regulators in his notes conclusion.“We have been in contact with and are coordinating with law enforcement and relevant regulators,” Ryne said. 　　Interestingly, this revelations come just after a previous news update that claimed hackers had access to the FTX exchange. Customers were advised not to visit the FTX website because scammers had hacked it by the FTX Telegram admin. The admin had earlier claimed that money had been taken from the site and had intimated that some money might have been recovered.　　　　Despite the sad failure of the exchange, many users ended up losing a significant amount of money as a result. Over-the-counter cryptocurrency hedge company Galois Capital has disclosed that all half of its assets are stuck in FTX.　　Kevin Zhou, a co-founder of Galois, indicated that the stuck wealth is believed to be worth $100

2022-11-23Deep Dive

Bankman-Fried Apologizes to FTX Employees, Details Amount of Leverage in Internal Letter

FTX founder and former CEO Sam Bankman-Fried “froze up in the face of pressure” as his company failed, he wrote in a new letter to former employees.　　Bankman-Fried stated in the letter, which was shared internally on FTXs company Slack and obtained by CoinDesk, that he was “deeply sorry about what happened” and what it meant for the companys employees. He did not respond to allegations that FTX diverted customer and corporate funds to support Bankman-Alameda Frieds Research, revelations that Alameda was exempt from FTXs normal liquidation process, or statements that Alameda had loaned funds to FTX officials, including himself.　　“I didnt intend for any of this to happen, and I would give anything to be able to go back in time and redo things. You were like family to me ”He stated. “Ive lost that, and our old house is now a monitor warehouse. Theres no one left to talk to when I turn around.”　　“In the face of pressure, leaks, and the Binance [letter of intent to purchase FTX], I froze up and said nothing,” he explained.　　Bankman-Fried resigned as CEO of FTX on November 11, just before the company declared bankruptcy. He is not a current employee of the company, according

2022-11-23Deep Dive

The first US DAO to take on the SEC without counsel

In the 2021 file it made to the SEC, the Decentralized Autonomous Organization (DAO) registered its native, interdependent tokens. These tokens included the governance token Locke and the stablecoin Ducat. Although this is the case, the regulatory authority has begun the legal steps required to request a halt order, claiming a wide range of registration-related issues. 　　Additionally, American CryptoFed has declared that it will file a lawsuit to extend the date for submitting its reply to the SECs decision initiating administrative proceedings.　　As a result of this event, it will then have a period of twenty days to prepare a reply to the SECs request to halt American CryptoFeds registration. 　　The DAO outlines how the Locke and Ducat toks, which are components of the DAOs envisioned financial system with a Wyoming headquarters, interact in its file dated September 2021. On this document, September 2021 is depicted.　　The targeted recipient of these currencies are the DAO participants, which may include governmental bodies, private companies, financial institutions, cryptocurrency exchanges, and other kinds of organizations. American CryptoFed would become a reporting entity and be compelled to meet its obligations to make regular reports to the regulating agency if it were to file with the Securities

2022-11-22Deep Dive

Bitcoin Declines as the Crypto Market Again Crashes

The majority of the day was spent trading in the red on cryptocurrency exchanges for the most part. 　　Given that recent trading volume has been calm at approximately $16,700, it is clear that bitcoin traders have maintained their protective stance from the prior week. This is a drop of 1.4% in the previous twenty-four hours. Approximately $1,200 was the most recent price of ether on the market, a decrease of 3.7%. In the past day, the value of CEL and UNI, two more well-known cryptocurrencies, fell by more than 5%. The FTX FTT coin was trading at $1.66 as of the time of this writing, down about 4%. This is a sharp decline from the years early near-$36 high.　　　　Derar Islim, the interim CEO of Genesis, revealed on a teleconference with clients that the company is looking into a number of options for the loan sector, one of which is finding a new source of capital. The following week, he promised, Genesis would give clients more details about the plan. According to information on the firm website, Genesis Global Capital catered to institutional clients and had a total of $2.8 billion in outstanding loans as of the end of the third

2022-11-22Deep Dive

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