Weekly Crypto News Recap – Nov 18, 2022

November 18, 2022



TOP STORIES OF THE WEEK

Bahamas seized FTX Digital Markets’ assets on Nov. 12, regulator now says

The Block
The Securities Commission of the Bahamas on Nov. 12 transferred FTX Digital Markets' assets to a digital wallet it controls, the regulator said on Twitter Nov. 17, further complicating a legal struggle between the company and disgraced former CEO Sam Bankman-Fried. Assets began mysteriously moving out of FTX accounts late on Nov. 11, with the company itself appearing unsure of what was going on. "Urgent interim regulatory action was necessary to protect the interests of clients and creditors of [FTX DM]," the Securities Commission's release continues. According to bankruptcy attorneys hired by the embattled company last week, Bankman-Fried is attempting to hamstring the U.S. Chapter 11 case by tying assets up in the Bahamas. "Mr. Bankman-Fried, the co-founder, and controlling owner of all of the Debtors and of FTX DM, appears to be supporting efforts … to expand the scope of the FTX DM proceeding in the Bahamas, to undermine these Chapter 11 Cases, and to move assets from the Debtors to accounts in the Bahamas under the control of the Bahamian government," the filing said. The Bahamas' securities regulator shrugged off these concerns in its statement. "It is not the understanding of the Commission that [FTX DM] is a party to the U.S. Chapter 11 bankruptcy proceedings," the Securities Commission said.

Alameda Had ‘Secret Exemption’ From FTX Liquidation Protocols, New CEO Says

CoinDesk
Alameda Research, the trading vehicle at the center of Sam Bankman-Fried’s and FTX’s downfall, had a “secret exemption” from the crypto exchange’s liquidation procedures, according to bankruptcy filings Thursday. The revelation in a court filing, though scant on details, would indicate that Alameda held an advantage when making risky leveraged trades on FTX. The allegations are part of a litany of poor management practices highlighted by Ray, previously responsible for sweeping up the mess left by Enron, who said FTX was the worst failure of internal controls and record-keeping he has seen in his 40-year career.

Genesis’ Lending Arm, Gemini Earn, Halt Withdrawals as FTX Contagion Spreads

CoinSpectator
Genesis' lending unit, Genesis Global Capital, has suspended redemptions and new loan originations in the wake of the bankruptcy of FTX. Genesis said on Wednesday that its lending unit got first hit by the downfall of Three Arrows Capital, a hedge fund that went under in July. Since then, the company had been derisking its book and “shoring up [its] liquidity profile and the quality of [its] collateral”, the firm said on Twitter. However, in the wake of the blowup of FTX, Genesis saw “abnormal withdrawal requests” that eventually “exceeded [their] current liquidity” and forced it to halt redemptions. Last week, Genesis revealed that it has about $175m stuck in its trading account on FTX. In response, Digital Currency Group, the owner of Genesis, Grayscale, and other crypto companies, offered a $140m cash infusion to strengthen Genesis’ balance sheet. Other reports indicate Genesis is currently looking to raise an extra $1b of external capital. Hours after Genesis halted withdrawals, Gemini, an American crypto exchange, suspended its Gemini Earn product, which provided additional yield to users that opted in to lending their cryptoassets to Genesis.

Wrapped tokens issued by FTX or Alameda collapsing, no longer redeemable

The Block

Matter Labs Nets $200M to Build zkSync Ethereum Scaling Platform

CoinDesk
Ethereum development firm Matter Labs has raised a monster $200m to support the launch of its zkSync V2 rollup network, one of the major platforms vying for dominance in a crowded competition to reduce Ethereum’s fees and increase its transaction speeds. Matter Labs’ Series C funding round, which closed before the market was roiled by the collapse of crypto exchange FTX, was co-led by Blockchain Capital and Dragonfly. The version of zkSync that launched on Ethereum in October, the “baby alpha” version of zkSync V2, is only open for internal testing by the Matter Labs team. According to a public roadmap put out by the firm, any whitelisted project will be able to launch on zkSync to run their own tests in a soon-to-arrive update to the platform, with users eventually gaining access to the platform in a subsequent update slated for late 2022 or early 2023.

BITCOIN

$600M in Bitcoin options expire on Friday, giving bears reason to pin BTC under $16K
Nayib Bukele announces Bitcoin prescription for El Salvador: 1 BTC a day
$3 billion in Bitcoin left exchanges this week amid FTX contagion fears

ETHEREUM

Ether Staking Yields Jump Up to 25%; All-Time High Since Merge
Ether staking withdrawal schedule removal faces harsh criticism
Arbitrum sees steady growth as airdrop speculation leads to increased earnings
Wallet Linked to Vitalik Buterin Sells Off $3.75 Million in Ethereum
Ethereum becomes most deflationary in history as activity spikes amid FTX collapse

ALTCOINS

Starkware launches token on Ethereum, but it’s not yet tradable
Sui Network, a New Blockchain From Ex-Meta Employees, Launches Its Testnet
Uniswap website goes dark for some users after Cloudflare routing problem
1inch seeks to optimize gas costs with its new v5 router
Serum’s SRM Tokens Double in Price After Emergency Fork in Wake of FTX Hack
DeFi protocol Oxygen held 95% of supply on FTX
Solana Foundation reveals minimal exposure to FTX
Trust Wallet Token Soars 47% as Binance CEO Shills Self-Custody Solution
Bitcoin Cash Could Be Legal Tender in St. Kitts by March, Prime Minister Says
Cosmos Blockchain Founder Jae Kwon Opposes Proposed Changes to ATOM Token
Star Atlas cash runway sliced in half by FTX catastrophe
New FTX tokens worth about $380 million appear out of thin air

STABLECOINS

Cardano developer Emurgo to issue fiat-pegged stablecoin called USDA
MakerDAO Releases Speedy DAI Transfers and Tightens Controls on Vaults
Businesses Can Now Accept USDC With Apple Pay
US Sen. Gillibrand Says a Last-Ditch Stablecoin Bill May Still Emerge This Year
Tether says it has no exposure to Genesis Global or Gemini Earn
Circle CEO Calls for Clear US Laws on Stablecoins to 'Unleash' Their Potential
Circle’s USDC issuance falls 3 billion from Binance stablecoin conversions

CRYPTO ECOSYSTEM

FTX market aftershock reportedly causes Genesis Block to cease trading in Hong Kong
Jump Crypto denies rumors that it intends to wind down due to FTX losses
Genesis Sought $1B Loan Before Halting Redemptions
FTX Exploiter Swaps Thousands of Stolen BNB Crypto Tokens Into Ether, BUSD
Nexo resolves real-time audit outage laying insolvency rumors to rest
Market Maker B2C2 Offers to Buy Loans From Genesis Crypto-Lending Unit
Esports team TSM suspends $210M sponsorship deal with FTX
Nigerian crypto startup Nestcoin says funds stuck in FTX
Alameda Allegedly Traded These 18 Tokens on Insider Info Through FTX
Crypto Lender SALT Halts Withdrawals After FTX Collapse
Paxos Freezes $19 Million in PAXG Tokens Linked to FTX
Unsecured DeFi Lenders Look Shaky in Face of FTX Contagion
BlockFi has ‘significant exposure’ to FTX, denies talk of majority of assets being custodied at FTX
Sam Bankman-Fried’s Unceremonious Exit Leaves ‘Alameda Gap’ in Crypto Markets
Wintermute Ceased Trading and Moved Funds From Crypto Exchange FTX US Before Warning
Matrixport reveals FTX exposure; 79 users incurred losses as result
Genesis receives additional equity infusion of $140M following recent market events
Alameda promised ‘high returns with no risk’ in 2018 pitch
Jump Crypto says it remains ‘well capitalized’ following FTX downfall
After BlockFi pauses withdrawals, customers are left confused and angry
Payments company Curve bids for BlockFi’s 87,000 credit card customers

NFTS / GAMING / METAVERSE

Sony Files Patent for Tracking In-Game Digital Assets With NFTs
3LAU’s Royal Debuts Marketplace to Bring Music NFTs to the Masses
Solana NFT Protocol Metaplex Announces Layoffs in Wake of FTX Collapse
SuperRare Auctions NFT Subscription Passes For More Than $4M
Cristiano Ronaldo to Release the First NFT Collection on Binance on Friday
Bored Ape Creator Yuga Labs Acquires Beeple’s WENEW, 10KTF NFT Project
Nike Launches Web3 Platform Offering Virtual Apparel and Other NFT-Based Products

MINING

Startup Arkon Energy Raises $28M to Further Expand Into Bitcoin Mining
Bitfarms Deepens 2022 Loss Despite More Bitcoins Mined
Bankrupt Compute North Sells $1.55M in Assets to Flared-Gas Bitcoin Miner
Bitcoin hosting provider Applied Digital secures $15 million loan to expand in Texas
Bitcoin Miner Core Scientific Facing Lawsuit for Improperly Disclosing Financials
Is GPU mining profitable after the Ethereum Merge?
Bitcoin Miner Cathedra Slashes Payroll Costs by Two-Thirds With Job, Salary Cuts
Bitcoin miner Canaan seeks to expand operations despite decline in Q3 revenue
Bitcoin Miner Bitfarms Pays Down $27M of Debt
Bitcoin Mining Firm TeraWulf Raised $17M of Capital in Q3, But Cash Reserves Remain Low
Canaan Feels the Bitcoin Blues. Net Income Down 90%
Oil Giant Shell Makes Move Into Bitcoin Mining Industry – Here’s What You Need to Know
Ex-Ethereum Miners Token Hop to Stay Alive After the Merge

EXCHANGES

Former Enron Liquidator Finds 'Complete Absence of Trustworthy Financial Information' at FTX
FTX Catastrophe Likely Triggered By Terra Collapse: Nansen
Binance.US to bid for bankrupt crypto lender Voyager: CoinDesk
Bahamian FTX Liquidators Cite ‘Serious Fraud and Mismanagement’ in Court Filings
South Korean Crypto Exchange Gopax Services Hit by Genesis Disruption
Fintech firm TrueLayer to power Coinbase payments, eyes stablecoins
FTX acquisition no more: Canadian exchange Bitvo backs off the deal
Crypto Exchange Bitstamp Wins Registration in Spain
Abu Dhabi Grants Permission to Binance to Offer Custodial Services
OKX exchange plans $100 million market recovery fund
Binance role in FTX collapse under congressional scrutiny
Bitget starts operations in Brazil: InfoMoney
Bybit releases reserve wallet addresses amid calls for transparency
Gemini Restores Service to Exchange After Outage Spooks Investors
Coinbase says it has no exposure to Genesis, touts ‘strong capital position’
U.S. prosecutors recommend 12-month probation for former Bitmex executive
FTX Employees Were Encouraged to Keep Life Savings in the Now-Bankrupt Exchange, Sources Say
Crypto Exchange Gemini Suffers $485M Rush of Outflows Amid Contagion Fears
Sam Bankman-Fried says he regrets filing for bankruptcy: Report
Bahamian liquidators reject validity of FTX’s US bankruptcy filing
Hong Kong Crypto Exchange AAX Reopening Hinges on Capital Raise
SBF says he wants to ‘raise liquidity’ as puzzling tweets continue
Binance gets regulatory nod for institutional crypto custody in Abu Dhabi
Uniswap Overtakes Coinbase as Second-Largest Exchange Trading Ethereum Today
Crypto Exchange PowerTrade to Offer Custody Services to Institutional Clients
Binance to Be 'Guinea Pig' for Vitalik Buterin's Proof-of-Reserves Protocol: CZ
Bitget Raises Protection Fund to $300m after FTX Turmoil
FTX debacle sees Nansen take stock of major exchange on-chain holdings
Bahamian Supreme Court Approves Liquidators for FTX Assets
FTX-acquired crypto exchange Liquid suspends withdrawals
Binance CEO Announces 'Industry Recovery Fund' Amid FTX Exchange Collapse
Crypto.com Trimmed $1 Billion FTX Exposure to $10 Million
Hong Kong Crypto Platform Hbit's $18.1M Stuck in FTX
FTX customers attempt roundabout ways to withdraw their funds in Bahamas
KuCoin CEO addresses rumours surrounding FTX, FTT exposure
FTX Withdraws US CFTC Derivatives Clearing Plan: Bloomberg
Crypto.com Holds 20% of Its Reserves in Meme Token SHIB
FTX Hit by Nine-Figure Hack as Meltdown Continues
SBF built bespoke ‘backdoor’ to outwit FTX compliance systems: Reuters
Bitfinex publishes details of reserves after rival FTX files for bankruptcy protection
FTX CEO John Ray Confirms Late-Night Hack, Says Company Is Working With Law Enforcement
Huobi and Gate.io under fire for allegedly sharing snapshots using loaned funds
Kraken freezes FTX and Alameda accounts, ‘maintains full reserves’
All Custodial Crypto Exchanges Should Adopt Proof-of-Reserve Programs, but Even That Isn’t Enough
CrossTower revises new offer for Voyager’s assets after FTX’s bankruptcy
Crypto.com Accidentally Sent $400M in Ethereum to Wrong Address, CEO Calls Concerns ‘FUD’
Huobi Asset Transparency Report Reveals $3.5B in Crypto Holdings
Crypto Exchange AAX Suspends Withdrawals as FTX Failure Reverberates

INVESTMENT MANAGEMENT

Community fears FTX implosion might affect Grayscale
Temasek writes down $275 million investment in FTX
3AC wallet shifts over $20M in ETH, stablecoins over past 6 days, fueling rumors of revival attempt
Multicoin Capital’s third VC fund has exposure of more than $25 million to FTX
Digital Asset Manager Valkyrie Lays Off 30% of Staff: Bloomberg
Crypto asset management firm Ikigai ‘caught up in the FTX collapse’
Crypto Venture Firm Sino Global Reveals 'Mid-Seven Figures' Exposure to Bankrupt FTX
Ontario Teachers Sunk $95M in FTX—Pension Fund Says Collapse Will Have 'Limited Impact'
Galois Capital admits over 50% of its capital was locked up in FTX
Paradigm marks down FTX investment to zero: Sources

TRADFI / TECH

Twitter closes offices, staff resign while users eye decentralized options
Revolut to debut ‘lite’ app as it trumpets 25 million users
Wells Fargo, HSBC Add Offshore Yuan to Blockchain Foreign-Exchange System
Elon Musk will find someone else to run Twitter: WSJ
Silvergate records reveal $425M in transfers to South American money launderers
ASX cancels years-long blockchain settlement and clearing system project
Visa Pulls Plug on FTX Partnership, Will Wind Down Debit Cards: Report
GameStop to End FTX.US Ties, Refund Customers
Plaid suspends FTX.US access to user data after ‘concerning’ reports

CBDC

Zimbabwean Central Bank Launches CBDC Consumer Survey
BIS Innovation Hub launches new prototype CBDC
Fed paper looks at theoretical role of remuneration, convenience in CBDC design
U.S. Banks Launch a Digital Dollar Blockchain Pilot

REGULATORY / COUNTRIES

FINRA Targets Crypto Communications After FTX Collapse
CFTC Has ‘Boots on the Ground’ at FTX Subsidiary LedgerX
U.S. House Financial Services Committee Plans Official Hearing on FTX Collapse: Report
Aussie treasurer promises crypto regulation next year amid FTX debacle
US Treasury Secretary Janet Yellen Says Crypto Markets Need More ‘Effective Oversight’ Following FTX Implosion
Crypto Will Soon Threaten Global Financial Stability, FSB Official Says
South Korean Authorities Raid Terra Co-Founder’s Company Office
FTX, Bankman-Fried Will Face Congressional Hearing in December
Republicans Secure US House Majority, Will Shift Path for Crypto Bills
FDIC acting chair says no crypto firms or tokens are backed by agency
South Korean Regulator Set to Launch Crypto Auditing Guidelines
South Korean Prosecutors Raid Terra Co-Founder's Company in UST Probe
US reportedly considering Bankman-Fried extradition for questioning
CZ plans industry association to communicate with regulators worldwide
CFTC Pushes Back Against Amicus Briefs in Ooki DAO Lawsuit
European AML rules could ban privacy coins: CoinDesk
Ripple publishes proposed guidelines for UK regulators
Bahamas Securities Commission neither “authorized” nor condones FTX enabling local withdrawals
Government Official: FTX Collapse Will Not Stop Hong Kong Becoming Virtual Asset Hub
FTX under investigation in the Bahamas for possible criminal misconduct

ENVIRONMENTAL, SOCIAL, GOVERNANCE


Ethereum Software Firm ConsenSys Co-Launches Ethereum Climate Platform
Blockchain and the world’s growing plastic problem

SURVEYS, HACKS, MISC

Sam Bankman-Fried Switches Legal Counsel as Investigations Into FTX Collapse Mount: Report
Founder of Crypto Exchange Thodex to Be Extradited to Turkey From Albania: Report
Crypto Token Launch Platform Tokensoft Doxes 4500 Users, Calling Them ‘Bad Actors’
Tom Brady and other celebrities named in class-action lawsuit against FTX
FTX’s new CEO John Ray coldly addresses SBF’s erratic tweets
ZachXBT calls out Gate.io for keeping 2018 hack under wraps
Trump officially announces 2024 presidential bid
FTX drainer sells more BNB, now 34th largest holder of ETH
SolChicksNFT CEO, COO leaked messages confirm up to $20M treasury fund loss
Luna Foundation Guard Spent $2.8B Defending UST Peg, Third-Party Audit Finds
SBF tells New York Times that he ‘could be worse’
Crypto Twitter unhappy with SBF ‘puff piece’ pushed by mainstream media
Defunct Billion-Dollar Crypto Hedge Fund Three Arrows Capital Speaks Out, Blames Collapse on FTX
Sam Bankman-Fried ends bizarre tweet thread and we are still none the wiser
FTX hacker begins possible Pump & Dump scam as troll messages & cryptic tokens sent to Uniswap
FTX Owes Miami $16.5M For Arena Sponsorship Cancellation






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