Autor Cointelegraph By Savannah Fortis

US Sen. Elizabeth Warren says crypto will ruin economy —community responds

US Sen. Elizabeth Warren says crypto will ruin economy —community responds

Uverejnil používateľ | nov 23, 2022 |

The downfall of former crypto exchange FTX has had the entire industry in disarray since the situation began to unravel days before it declared bankruptcy on Nov. 11. A new op-ed from United States Senator Elizabeth Warren revealed a negative stance towards the industry with regard to the fallout.Warren wrote that the crypto industry is on a “well-worn path of financial innovation,” which starts with exciting rewards but ends in “crippling losses.” She compared it to subprime mortgages of 2008, penny stocks and credit-default swaps. The Senator said what happened with FTX should be a “wake-up call” to regulators to enforce laws on the industry. On Twitter, some agreed with the Senator, tweeting that the crypto industry is just “smoke and mirrors” and that Warren has been trying to warn the public all along. Though many have pointed the finger back at her, saying regulators don’t understand the industry and incite fear with such comments. One user pointed out a middle ground saying there is room for regulation when it comes to centralized exchanges, which are much different than the technology of crypto and decentralized exchanges.Centralized exchanges for crypto are a far cry from crypto the technology. Know the difference and only regulate the centralized exchanges. The risk is the centralized exchanges, not the crypto and not decentralized exchanges/finance. Crypto did not fail. SBF failed. SEC failed.— Steve Westhoff (@SteveWesthoff) November 22, 2022The following day, not referencing the op-ed specifically, the co-founder and CEO of Binance Changpeng “CZ” Zhao also tweeted on the topic saying where there is progress there is always failure.Some (including me) say this will “set the industry back a few years.” But thinking about it, this is natural. There will be failures with progress. Happened in regulated TradFi in 2008, after 70+ years of development. The industry will recover quickly, and become stronger.— CZ Binance (@cz_binance) November 23, 2022

In response to CZ’s tweet, many in the community said that this is the reset crypto needed. Related: Will SBF face consequences for mismanaging FTX? Don’t count on itRegulators in the U.S. have been actively voicing concerns following the FTX scandal. On Nov. 21, U.S. senators released a letter to Fidelity urging it to reconsider its Bitcoin offerings in light of FTX. On Nov. 16 Warren, along with Senator Richard Durbin, publicized a letter they sent to the former and current CEOs of FTX — Sam Bankman-Fried and John Jay Ray III. The letter had 13 requests for documents, lists and answers regarding the situation. Warren has been a major critic of the crypto industry over the last year. Previously she has called DeFi “dangerous” and has been active to expose unsustainable practices in the crypto mining scene in the U.S.Her latest op-ed also addresses those topics, along with crypto’s role in money laundering and ransomware attacks.

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CoinMarketCap launches proof-of-reserve tracker for crypto exchanges

CoinMarketCap launches proof-of-reserve tracker for crypto exchanges

Uverejnil používateľ | nov 22, 2022 |

CoinMarketCap, a leading market researcher and tracker in the crypto industry, announced the launch of a new feature on its platform which allows users updated financial insights on exchanges.The proof of reserves (PoR) tracker audits active cryptocurrency exchanges in the industry for transparency on liquidity at a given moment. According to the announcement, the tracker details the total assets of the company, and its affiliated public wallet addresses, along with the balances, current price and values of the wallets.CoinMarketCap reports the PoR trackers will update data every 5 minutes. On Nov. 22 the company tweeted a guide for users on how to navigate the tool.NEW #CMC Feature: Exchange’s Proof of Reserves Proof of Reserves (PoR) provides transparency to #cryptocurrency reserves through a verifiable auditing practice. pic.twitter.com/HlNbUGzOYE— CoinMarketCap (@CoinMarketCap) November 22, 2022In the 5-part Twitter thread, Binance was given as an initial example with over $65 billion listed in its combined wallet addresses. Additional exchanges with PoR information available include KuCoin, Bitfinex, OKX, Bybit, Crypto.com and Huobi.Binance CEO and co-founder Changpeng “CZ” Zhao, retweeted the development from CoinMarketCap with a link to Binance’s page. Some in the crypto community on Twitter have called this feature a “great transparency addition”.CZ was among the first to make a pledge for providing proof of reserves following the on-going FTX liquidity and bankruptcy crisis.On Nov. 10 it published a proof-of-assets, which included wallet addresses and activity. CZ then tweeted that what is available now is only the first iteration of what will be available via Merkle Tree PoR in the near future.Related: Binance tops up SAFU fund at $1 billion amid price fluctuationsFollowing Binance’s example, many other platforms in the space began releasing their financial reserve and liquidity information in an effort of transparency. Chainlink Labs, Bitfinex and ByBit were among some of the first to come forward with their own data.However, the cryptocurrency investment product servicer Grayscale has withheld its on-chain PoR due to what it says are security concerns. It did release a letter from Coinbase Custody which verified that Grayscale’s crypto holdings are fully backed, yet withheld wallet addresses.

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SBF, FTX execs reportedly spend millions on properties in the Bahamas

SBF, FTX execs reportedly spend millions on properties in the Bahamas

Uverejnil používateľ | nov 22, 2022 |

The latest revelation from the FTX case reveals that Bahamian properties worth millions were bought in the company name. FTX, at the time operated by Sam Bankman-Fried (SBF), his parents and other high-level executives of the company, reportedly purchased at least 19 properties in the Bahamas over the last two years.Collectively, these purchases have a worth of over $121 million, according to a Reuters report of the official property records. Among the acquired properties were seven luxury condos. While the residents of the condos remain unknown at the time of writing, the property deed claims they were to be used as “residences for key personnel” of the defunct exchange. Additionally, a property worth $16.4 million has SBF’s parents, Joseph Bankman and Barbara Fried, as signatories. The deed allegedly has the property designated a “vacation home,” with documents dating back to Jun. 15 of this year. According to original reports, a spokesperson for the couple did not answer the question as to how this leisure property was acquired and if any FTX funds were involved. Only the couple had been trying to return the property to FTX prior to the bankruptcy. “Since before the bankruptcy proceedings, Mr. Bankman and Ms. Fried have been seeking to return the deed to the company and are awaiting further instructions.”FTX moved its headquarters from Hong Kong to the Bahamas in Sep. 2021, which was purchased for $60 million and had an groundbreaking ceremony in April of this year. The official channel of the Prime Minister of the Bahamas released a video of the ceremony.However, according to reports from a recent property visit by media outlets, the space has been untouched for months. Related: Bahamian securities regulator ordered the transfer of FTX’s digital assetsAs the liquidity crisis and bankruptcy scandal unraveled, Bahamian authorities had Sam Bankman-Fried and two former associates at the former exchange ‘under supervision’ in the country, where they still remain toda.Court documents filed after the initial bankruptcy notice revealed that the company may have over 1 million creditors in total, with over $3 billion collectively owed to the 50 largest creditors.On Nov. 21, the United States Senate committee announced a scheduled FTX hearing for Dec. 1, during which the head of the CFTC head will testify.

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Celsius bankruptcy victims get proof-of-claim deadline from US court

Celsius bankruptcy victims get proof-of-claim deadline from US court

Uverejnil používateľ | nov 21, 2022 |

The ongoing case of the Celsius bankruptcy continues as the United States Bankruptcy Court in the southern district of New York State approved a new filing deadline.According to an official document, a deadline has been set for those filing any claims against the former digital assets lender. Any person or entity – which covers individuals, partnerships, corporations, joint ventures and trusts – who wishes to do so must submit a proof of claim by Jan. 3, 2023, 5:00 pm Eastern Time. Celsius itself made a thread on Twitter, informing its former users of the recent court deadline approval, along with step-by-step information as to how claims are filed:We created this video to help explain the claims process: https://t.co/jXmL1VQNxg— Celsius (@CelsiusNetwork) November 20, 2022The decision came shortly after the independent examiner in the Celsius case made an allegation that the company had ‘insufficient’ accounting and operational controls in its management of customer funds.Celsius’ activities have been under the watchful eye of regulators. A court ruling on Nov. 1 from the judge overseeing the case ordered a probe to investigate the possibility of Celsius as a Ponzi scheme as customers claimed that the former crypto lender used the assets of new users to cover existing yields and facilitate withdrawals.Additionally, the courts objected to a reopening of the platform for withdrawals and stablecoin sales. The next court hearing in the case is scheduled for Dec. 5 of this year.Related: Celsius users concerned over personal info revealed in bankruptcy caseDevelopments in the Celsius bankruptcy case come on the heels of yet another major crypto platform going under. The ongoing FTX liquidity crisis turned bankruptcy scandal is yet another case that has former users and investors with lost funds at the mercy of regulators.The FTX case is speculated to have over 1 million creditors involved. On Nov. 20, five days after it filed for Chapter 11 bankruptcy, the defunct exchange announced it is beginning a strategic review of its global assets to attempt to sell or reorganize.Lawyers familiar with these types of legal proceedings have speculated that getting funds recovered from FTX could be a process lasting years, possibly “decades.”Ironically, back in early October, the former CEO of FTX, Sam Bankman-Fried, outlined how he would proceed with a bid to acquire Celsius’ assets.

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FTX market aftershock reportedly causes Genesis Block to cease trading in Hong Kong

FTX market aftershock reportedly causes Genesis Block to cease trading in Hong Kong

Uverejnil používateľ | nov 18, 2022 |

In the wake of the recent FTX scandal, another crypto business is feeling the market effects. Genesis Block, a frontrunner for providing cryptocurrency retail services in Hong Kong, announced it will cease trading and shutter operations, according to reports.According to an email sent out to its customers by the compliance department, the company said from Dec. 10 of this year, it will be closing down its over-the-counter (OTC) online trading portal.Wincent Hung, the CEO of the company, told Reuters that the company has ceased trading as counterparties continue to shutter in light of the FTX fallout, and no one can tell who is next.”So we would rather close out all our positions to regain some of our liquidity.”The company’s website is still active, and even appears with help messages for customers interested in OTC trading. However, according to the email, the company is asking its customers to withdraw their remaining funds and is no longer accepting new customers.Genesis Block is not related to the separate crypto company Genesis, which provides institutional cryptocurrency trading services. That Genesis has also been affected by the FTX fallout, as it tweeted that $175 million of its funds are locked up in the defunct exchange.Sources close to the company said Genesis Block began winding down services earlier this year and cut ties with FTX prior to the fallout. Additionally the company used to operate one of the most robust bitcoin ATM networks in the region, with 29 locations in Hong Kong, which it sold to a third party.Cointelegraph reached out to Genesis Block for further comment on the situation.Related: FTX will be the last giant to fall this cycle: Hedge fund co-founderGenesis is one of many companies in the space who are feeling serious repercussions of the ongoing saga of the fallen exchange. Like the above mentioned Genesis, Huobi Global said it too has inaccessible funds held up in FTX. The company says it has $18.1 million worth of deposits frozen, of which $13.2 million are client deposits.The situation surrounding the FTX fallout, affected businesses and repercussions for its former CEO Sam Bankman Fried is currently unfolding. 

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