Cryptocurrency

SBF out as CEO as FTX files for bankruptcy; SEC Chairman’s ties with exchange under scrutiny

The biggest news in the Cryptoverse on November 11th included FTX filing for bankruptcy, John Ray III taking over from Sam Bankman Freed as CEO, and FTX users using the “Bahamas loophole” to navigate the bankruptcy process. Including what you are trying to avoid. Suspicious ties with FTX, and Crypto.com disclosing reserve holdings to quell bankruptcy rumors.

CryptoSlate Top Stories

FTX Files For Bankruptcy, Sam Bankman-Fried Steps Down As CEO

About 130 companies under the FTX Group filed for Chapter 11 bankruptcy protection on November 11. The exchange said it would work to restructure the remaining assets to refund affected stakeholders.

Additionally, John Ray III will assume the CEO role from Sam Bankman-Fried.

Binance CEO Expects More Regulatory Scrutiny After FTX Implosion

Binance CEO Changpeng Zhao “CZ” has said that he has to withdraw from FTX trading as a result of the regulatory scrutiny that has to fight FTX.

CZ added that the FTX demise will lead to increased scrutiny of cryptocurrency exchanges. To increase transparency, CZ recommends that regulators consider an audit of the exchange’s business model and margin, in addition to his KYC and AML laws.

Crypto.com Discloses Partial Reserves To Counter Bankruptcy Rumors

In the wake of FTX, several cryptocurrency exchanges, including Crypto.com, have begun disclosing their reserve holdings to ease fears of bankruptcy.

According to details shared by Crypto.com CEO Kris Marszalek, the exchange holds about 53,024 bitcoins, 391,564 ethereum, and a total of about $3 billion in altcoins.

Pantera Capital swiftly implements precautionary measures following FTX and Alameda fallout

Venture capital firm Pantera said it conducted a risk assessment of projects in its investment portfolio to take precautionary measures following the collapse of FTX.

About 95% of projects in Pantera’s portfolio have no exposure to FTX or Alameda, according to the valuation report. However, two startups have been affected and will receive further support from investment firms.

US Congressman Claims SEC’s Gensler Had Questionable Relationship With FTX, Promises Investigation

SEC Chairman Gary Gensler, FTX CEO Sam Bankman-Fried, and Alameda CEO Caroline Ellison reportedly have long-standing relationships linked to MIT.

As a result, rumors circulated that Gensler had a sinister relationship with FTX, and he seeks to give FTX more control over the crypto space.

Crypto-friendly US Congressman Tom Emer Responds To Speculation Said He launches an investigation to uncover Gensler’s role in helping FTX gain regulatory monopoly.

Desperate FTX users employ shady tactics to avoid the bankruptcy process

In the wake of FTX’s collapse, Bahamian authorities have frozen FTX’s assets. However, we allowed the Bahamians to withdraw the remaining funds.

As a result, many FTX users choose to work with Bahamian citizens to withdraw their funds.Some members of the cryptocurrency community have criticized the practice as illegal, but many investors @Depression 2019 Rather than waiting through the five-year bankruptcy process, it said it would be better to employ such tactics to recover the full amount.

BlockFi Suspends Withdrawals Amid FTX Crisis, Genesis Trading, Crypto.com Emphasize Transparency

The impact of FTX has caught up with BlockFi as BlockFi has moved to suspend withdrawal and trading activity on the platform. BlockFi reportedly got a $400 million loan from his FTX.US, which expires in July 2023.

Kucoin CEO Addresses Rumors Over FTX, FTT Exposure

To keep Kucoin away from FTX collapse, CEO Johnny Lyu shared the details of Kucoin’s proof of reserve.

At the time of publication, Kucoin held approximately 20,504 BTC, 180,299 ETH, 69.6 million KCS, 1.08 million USDT and 365 million USDC.

Realized Bitcoin Losses Surge As Grayscale GBTC Trades Below $10,000 BTC Equivalents

The FTX collapse that started on November 9 has pushed Bitcoin below $15,590. As a result, realized losses on flagship assets hit a record high.

Similarly, Grayscale’s GBTC share fell to an all-time low of $9,771. GBTC is trading at a 41% discount to net asset value (NAV).

The FTX crash forces Bitcoin into self-control.Ethereum Switched to Stablecoin

With the spread of FTX, more investors are moving Bitcoin from centralized exchanges to self-custody wallets. As of Nov. 11, up to 78% (around 15 million) of the approximately 19 million BTC in circulation are self-managed, according to Glassnode data. As a result, Bitcoin’s illiquid supply chart surged to new highs.

Further on-chain research reveals that the market cap of the top four stablecoins has overtaken Ethereum’s market cap. Implicitly, more and more investors are moving their funds into stablecoins to hedge against the growing uncertainty of the crypto market.

research highlights

Bitcoin Whale Leads Aggressive Accumulation Phase Despite FTX Catastrophe

The FTX crash has fueled bearish sentiment across the market. However, on-chain data analyzed by CryptoSlate shows that Bitcoin whales are increasing their holdings.

As of November 10, the Accumulation Propensity Score (ATS) has reached around 0.74, indicating that Bitcoin investors are actively accumulating.

Similarly, the forex net position change chart shows that whale and super whale holdings have increased significantly recently.

Whale exchange net position fluctuation

News from the Cryptoverse

FTX Withdraws US CFTC Derivatives Plan

Following FTX Group’s bankruptcy filing on November 11, bloomberg has reported that it has withdrawn a derivatives clearing plan submitted to the US Commodity Futures Trading Commission (CFTC).

This proposal will allow FTX users to access and mitigate derivative risk in real time.

Deribit coordinates withdrawal and deposit procedures

Debit exchange is notification Users can create new wallet addresses after updating Fireblocks. Users were warned not to transfer funds to their previous accounts.

Exchange withdrawal requests are manually approved and processed by Deribit Withdrawals.

crypto market

Over the past 24 hours, Bitcoin (BTC) has fallen more than 3% to trade at $16,722, while Ethereum (ETH) has fallen 2.2% to trade at $1,258.

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