Značka: business

INX submits bid for Voyager Digital's assets

Trading platform INX has submitted a bid for an undisclosed amount to purchase the assets of crypto brokerage firm Voyager Digital.In a Nov. 30 announcement, INX said it had sent a non-binding letter of intent for Voyager’s assets following the platform filing for bankruptcy in July. According to INX CEO Shy Datika, the bid was aimed at providing “credibility, technology, and unique regulatory positioning” for Voyager users seeking stability in a volatile market. Voyager’s original bankruptcy filing from the Southern District Court of New York suggested the firm could owe between $1 billion to $10 billion to more than 100,000 creditors amid a bear market and exposure to Three Arrows Capital. In September, FTX US won a $1.4-billion bid to purchase Voyager’s assets, but with FTX Group itself filing for bankruptcy in November, the funds were once again up for grabs.Related: Voyager Digital won’t sue its executives for incompetence, will claim insurance on themBinance has reportedly been considering a bid for Voyager’s assets, while crypto exchange CrossTower was one of the firms that made an offer prior to FTX’s downfall. Cointelegraph reported on Nov. 13 that CrossTower had been working on a revised bid following FTX Group’s bankruptcy filing. INX was not part of the bidding process in September. Cointelegraph reached out to INX for comment, but did not receive a response at the time of publication.

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Coinbase Wallet will stop supporting BCH, ETC, XLM and XRP, citing 'low usage'

Starting on Dec. 5, the Coinbase Wallet will no longer support four major tokens.In a Nov. 29 notice on its help pages, Coinbase said the wallet will no longer support Bitcoin Cash (BCH), XRP (XRP), Ethereum Classic (ETC), and Stellar (XLM) as well as their networks. The crypto firm cited “low usage” of the four tokens in its decision to stop support starting on Dec. 5.”This does not mean your assets will be lost,” said the announcement. “Any unsupported asset that you hold will still be tied to your address(es) and accessible through your Coinbase Wallet recovery phrase.”Source: CoinbaseThis story is developing and will be updated.

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FTX logos and promotional material still everywhere despite bankruptcy proceedings

Before its liquidity issues and bankruptcy filing in November, FTX was well known for its prolific stance on making sponsorship deals. Even with many in and out of the space now associating the exchange with failed financial institutions, traces of the promotional glitter bomb it has unleashed on the world aren’t likely to go away anytime soon.In Abu Dhabi, attendees for the Gumball 3000 motor rally in November noted on social media that wristbands for the event and more than one of the vehicles bore FTX’s logo, as did advertisements around the city. The crypto exchange did not appear as a sponsor on the event’s website at the time of publication. Race weekend in Abu Dhabi Didn’t know FTX also sponsored Gumball 3000. Lol good old days when I used to feel proud to see FTX man I’m in tears. My $ftt RIPGotta respect constant changes in crypto pic.twitter.com/PyG9XJuWhX— belindazhou.eth in Sg (@ciaobelindazhou) November 18, 2022In 2021, the now infamous crypto firm inked a $135-million deal to rename the NBA Miami Heat’s stadium the FTX Arena until 2040. Following FTX’s bankruptcy filing, officials in Miami-Dade County on Nov. 22 filed a motion to terminate the naming rights agreement. A hearing on the matter is scheduled for Dec. 16, but at the time of publication, the FTX logo is still all over the Miami sports venue, leading to mockery online:Lol hat a metaphor the best player on the team gets to blatantly travel while running near the FTX logo on the floor https://t.co/bLMgpkjM1V— ◾️ frontier (@frontier_anon) November 26, 2022

Ouch! Just passed the Miami Heat arena- the FYX arena.#Web3 @FTX_Official pic.twitter.com/h3c6w3FiHg— Sandy.NFT 11-11 (@sandy_carter) November 28, 2022

Though the FTX Token (FTT) may not be something crypto users want to hang on to, the firm’s bankruptcy could increase the value of promotional merchandise. FTX sponsored the Formula 1 international racing team backed by luxury car brand Mercedes. Some fans reported that Mercedes’ car no longer sported the FTX logo at the Sao Paulo Grand Prix — held around the same time the firm filed for bankruptcy — with many also pointing out that the team’s caps still prominently featured the company branding:FTX logo on Mercedes F1 caps looked cool, now it is a rare piece pic.twitter.com/Jq82IzTn2D— Nikita Fadeev (@NikitaAFadeev) November 24, 2022

Related: Esports team TSM suspends $210M sponsorship deal with FTXOther partnerships between the exchange and sporting entities included endorsements from NFL quarterback Tom Brady and NBA point guard Stephen Curry, a global partnership with the International Cricket Council, a five-year deal with Major League Baseball, and a ten-year agreement to purchase the naming rights to Cal Memorial Stadium — now FTX Field — in Berkeley. Though officials have reportedly scrapped some of the exchange’s logos in an effort to no longer advertise FTX’s services, the promotional shrapnel spread by the firm may not be wholly removed for some time.

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How to talk to family members about crypto this Thanksgiving season

This week in the United States, millions of people comprising various political and financial backgrounds are traveling to see family members for the first time in months to celebrate Thanksgiving.For crypto-minded individuals, questions about the market may come as quickly as “Why did you cut your hair?” or “Why didn’t you become a doctor?” — especially given the very public collapse of major exchange FTX and soured reputation of its former CEO, Sam Bankman-Fried. The Cointelegraph team has put together a humorous “how to” guide for U.S. readers to reference when interacting with crypto skeptics and curious people while at home, though hodlers in other countries may find a few helpful tips as well.“What’s an SBF?”Despite all the three-letter acronyms they’ve heard on the news, family members might have a difficult time believing that the former CEO of FTX is not, in fact, a ticker symbol — though someone did launch an SBF Goes to Prison (SBFP) token on Nov. 21 that has fared slightly better than the exchange and its leadership, dropping more than 66% in price. “SBF” stands for “Sam Bankman-Fried,” who led the now infamous FTX to become one of the most prominent companies in the crypto space before its bankruptcy. Bankman-Fried resigned on Nov. 11, the same day FTX filed for bankruptcy. He currently resides in the Bahamas, and there has been no shortage of stories and rumors about the former executive and his relationship with staff. SBF might be extradited to the United States to face questioning by government officials and potential criminal charges.“Why didn’t you make money from those cartoon monkeys?”Many in the crypto space and beyond have suggested that the nonfungible token, or NFT, market is in a bubble, but use cases for the technology go far beyond projects like Bored Ape Yacht Club — which is responsible for many of the images family members see when NFT stories go mainstream. Explaining that NFTs can provide authentication for digital and physical products may seem less important than swiping the last of the sweet potatoes from the dinner table, but if readers are looking for a relatable example to use at home, try this:[embedded content]“I heard Elizabeth Warren say crypto is going to ruin the economy”Whatever your political leanings may be, no one can deny that Democratic Senator Elizabeth Warren is among the loudest anti-crypto voices in Congress. In a Nov. 22 Wall Street Journal op-ed, the Massachusetts senator said the situation with FTX should be a “wake-up call” for regulators to enforce laws on the crypto industry in addition to associating digital assets with money laundering and ransomware attacks. Many in the space have criticized the senator for taking an “all or nothing” approach to digital assets, often failing to distinguish between front-facing centralized exchanges and decentralized projects building on the blockchain.What your older family members see when you’re trying to explain crypto to them: pic.twitter.com/rP1ooVqFCT— Cointelegraph (@Cointelegraph) October 1, 2022Despite the current crypto bear market, many industry proponents are not causing their companies to fold, cashing in all their digital asset holdings and burning any merch bearing the Bitcoin (BTC) logo. In fact, many experts agree that the state of crypto regulation and legislation in the United States needs to be addressed soon. And had there been more regulatory oversight of Bankman-Fried and FTX, the resulting market impact might have been less severe.Politicians from across the spectrum, including Texas Senator Ted Cruz and former Democratic presidential candidate Andrew Yang, have openly supported crypto and blockchain, but their parents probably don’t ask them when they’re going to “get a real job” over the holidays.Several Cointelegraph team members contributed to this article.

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Sam Bankman-Fried is 'deeply sorry' for collapse in letter to FTX team

Former FTX CEO Sam Bankman-Fried, also known as SBF, has reiterated apologies to the exchange’s employees in a letter explaining the collapse. According to a Nov. 22 letter reviewed by Cointelegraph, Bankman-Fried broke down the reasons behind FTX’s liquidity crisis and subsequent bankruptcy to employees. He largely confirmed information reported by media outlets amid the exchange’s collapse, citing the crypto market downturn as one of the factors leading to reduction in the value of FTX’s collateral assets. November’s “run on the bank,” according to the former CEO, helped reduce the exchange’s collateral to roughly $9 billion with $8 billion in liabilities. “I never intended this to happen,” said SBF. “I did not realize the full extent of the margin position, nor did I realize the magnitude of the risk posed by a hyper-correlated crash.”Bankman-Fried described his role in the calamity as a failure in oversight, saying he should have been “more skeptical of large margin positions,” and had more procedures in place to monitor and simulate crashes and runs on the bank. He said he planned to “make it up” to affected team members, but seemed to regret events leading to FTX’s bankruptcy:“I believe that a month earlier FTX had been a thriving, profitable, innovative business. Which means that FTX still had value, and that value could have gone towards helping to make everyone more whole. We likely could have raised significant funding; potential interest in billions of dollars of funding came in roughly eight minutes after I signed the Chapter 11 docs.”“Maybe there still is a chance to save the company,” said SBF. “I believe that there are billions of dollars of genuine interest from new investors that could go to making customers whole. But I can’t promise you that anything will happen, because it’s not my choice.”Related: Sam Bankman-Fried updates investors: ‘We got overconfident and careless,’ claims $13B leverageSBF resigned as the CEO of FTX on Nov. 11 in the same announcement in which the FTX Group filed for bankruptcy in the United States. Bankruptcy court proceedings in the District of Delaware are ongoing, but the legal team representing FTX debtors said on Nov. 22 that the exchange’s assets were still at risk of cyberattacks. An unknown actor removed 228,523 Ether (ETH) from FTX on Nov. 11.

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Binance CEO denies report firm met with Abu Dhabi investors for crypto recovery fund

Changpeng Zhao, chief executive officer of crypto exchange Binance, has denied a report claiming he met with investors in Abu Dhabi in an effort to raise cash for the company’s crypto recovery fund.According to a Nov. 22 report from Bloomberg, CZ and others affiliated with Binance discussed raising cash for its proposed fund, aimed at helping projects with potential liquidity issues. Zhao and the Binance team reportedly met with potential backers associated with United Arab Emirates National Security Adviser Sheikh Tahnoon bin Zayed, while a Binance spokesperson said the meetings were “focused on general global regulatory matters.” CZ pushed back against the report on Twitter, saying only it was “false.”The Binance CEO first announced the fund on Nov. 14 following FTX’s “liquidity crunch” and bankruptcy filing. It’s unclear how large the crypto exchange intended the fund to be. FTX’s bankruptcy filings suggested the firm owed more than $3 billion, while it had slightly more than $1.2 billion in cash as of Nov. 20. However, CZ added on Twitter that the fund was never intended for “liars or frauds.”To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify. 1/2— CZ Binance (@cz_binance) November 14, 2022Binance and CZ became entangled in the FTX debacle after announcing the exchange planned to liquidate its supply of FTX Token (FTT) and discussing a possible bailout at the request of then CEO Sam Bankman-Fried. Binance pulled out of the potential deal less than 48 hours later, FTX filed for bankruptcy, and Bankman-Fried resigned.“If we can’t help him, there’s probably nobody else that would,” said CZ on Nov. 17 in reference to a call with Bankman-Fried regarding FTX. “Probably a bunch of people passed on the deal before us.”Related: CZ explains why it’s so important to be building during the bear marketBased in Dubai since October 2021, CZ has been steadily pushing for adoption in the Middle East. In September, Dubai’s Virtual Asset Regulatory Authority gave the green light for Binance to offer virtual asset services to qualified retail and institutional investors. Abu Dhabi’s Global Market and Financial Services Regulatory Authority granted Binance similar approval to offer crypto services in November.

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High sentiment in FTX's shadow: event recap for Texas Blockchain Summit

Apparently, not everything is bigger in Texas. At least not in the days following a major crypto exchange declaring bankruptcy.The collapse of FTX and the ripples former CEO Sam Bankman-Fried made in the crypto space were on many people’s lips at the Texas Blockchain Summit held from Nov. 17-18 in the state capital of Austin. Unlike at the Texas Blockchain Council’s inaugural conference in October 2021 held over just one day, there were many open seats at the 2022 event, which featured speakers on energy, crypto mining, regulation, and innovations in the space.“Two years ago, this audience was packed,” said Chad Harris, chief commercial officer of crypto miner Riot Blockchain, at the summit — perhaps mistaking the year of the last event. “Today, this is an audience full of passionate people that believe that they can actually facilitate what they tell the public […] Every single time one of us fails in a disastrous way, it affects every one of us in this room.”Photo by authorUnited States lawmakers and regulators including Texas Senator Ted Cruz and Commodity Futures Trading Commission commissioner Summer Mersinger were in attendance, as were household names in the crypto space like podcast host Anthony ‘Pomp’ Pompliano and former presidential candidate Andrew Yang. The October 2021 summit had three U.S. senators speak, including pro-crypto lawmaker Cynthia Lummis. “Texas is a free state, and it’s attracted a lot of businesses […] I think we’re seeing the results of that,” Chamber of Digital Commerce founder Perianne Boring said to Cointelegraph at the summit.Kelsey Pristach, a senior policy adviser to Lummis, attended the 2022 summit to speak on a digital assets policy panel. However, some speakers scheduled to appear on panels on Nov. 17 were not in attendance for reasons unknown. Minnesota Representative Tom Emmer, announced as a confirmed speaker for the summit in May, did not appear on the final agenda. Although there were telltale signs of native Texans in the audience — a few cowboy hats and cheering whoop’s at bullish remarks — many attendees were dressed modestly in jackets, blazers, and slacks. Few sported attire like Bankman-Fried’s and other stereotypical “crypto bro” shorts and hoodies.“This industry needs to change, and it needs to change rapidly,” said Harris. “I think what’s going on today is a clearer sign and message that this industry… it’s time for us to mature.”He commented on the crypto market at one of its peaks:“Bitcoin was sixty plus thousand dollars, and everyone was driving lambos and flying planes and hanging on their yachts. And let me tell you something: it’s a much different world […] that type of bad behavior creates a bad environment for the people that are doing it right.”Cointelegraph’s Rachel Wolfson moderating a panel on ‘Bitcoin for Good’ at the Texas Blockchain Summit. Photo by author.”It was interesting to hear insights from speakers about how the FTX fallout will shape the industry moving forward,” said Cointelegraph’s Rachel Wolfson. “While the event wasn’t as heavily attended as last year, there were a number of high level speakers that had valuable insights to share regarding the FTX fallout and how Texas will continue to advance the industry forward with strong support for Bitcoin mining and blockchain innovation.”While Bitcoin (BTC), energy, and mining were largely the theme on Nov. 17, the last day focused on regulation and policy, with many speakers suggesting the fall of FTX could trigger a disproportionate response from lawmakers. Yang referred to a potential “appetite for regulation” among policymakers in the United States, while CFTC commissioner Mersinger suggested that the government may be “past the education stage” in crypto education and was moving towards action.Related: Event recap Austin’s SXSW 2022: NFTs everywhereMany in the crypto space said that they see Texas as a regulatory-friendly environment for mining firms as well as blockchain-based projects, as Governor Greg Abbott has publicly said he was a “crypto law proposal supporter.” The Texas Blockchain Council reported roughly 1,000 people attended the 2021 summit, while a report from the Texas Tribune suggested there were “hundreds of investors, legislators, professionals and enthusiasts” at the 2022 event.

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FTX Japan plans to resume withdrawals by 2023: Report

Crypto exchange FTX’s subsidiary in Japan, FTX Japan, reportedly plans to resume withdrawals by the end of 2022.According to a Nov. 21 report from Japan-based news outlet NHK, FTX Japan has been making preparations to resume withdrawals. Japan’s Financial Services Agency, or FSA, requested the exchange suspend business orders on Nov. 10 prior to FTX Group declaring bankruptcy in the United States for more than 130 associated companies, including FTX Japan Holdings, FTX Japan, and FTX Japan Services.On Nov. 11, the FSA announced that it had taken administrative actions against FTX Japan amid reports its parent company was “facing credit uncertainties.” The orders required FTX Japan to suspend over-the-counter derivatives transactions and related margins as well as new deposits from users from Nov. 10 to Dec. 9 unless directed otherwise by the financial regulator. FTX Japan should have also submitted a plan by Nov. 16 on how the exchange intended to protect investors and provide transparency on the ongoing situation.Citing an unnamed executive at the Japanese exchange, NHK reported that FTX Japan had roughly 19.6 billion yen in cash — more than $138 million — as of Nov. 10 when it ceased operations. The Japan-based company was also reportedly for sale amid FTX Trading’s bankruptcy proceedings in the United States.Related: FTX fiasco means coming consequences for crypto in Washington DCOther FTX subsidiaries have taken similar actions in response to ongoing litigation against the company. Liquid, one of FTX Group’s companies also based in Japan, announced on Nov. 20 that it had paused “all forms of trading” due to the firm filing for bankruptcy under Chapter 11. LedgerX, owned by FTX US under the firm West Realm Shire Services, may be exempt as a debtor in FTX’s bankruptcy filing.

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Sam Bankman-Fried updates investors: 'We got overconfident and careless,' claims $13B leverage

Former FTX chief executive officer Sam Bankman-Fried said he was “wrong” in his estimates of the crypto exchange’s leverage prior to its collapse, claiming it wasn’t $5 billion, but closer to $13 billion.In a Nov. 16 Twitter thread, Bankman-Fried said leverage at FTX built up to roughly $5 billion, backed by $20 billion in assets, which held value but also the potential for risk. According to the former CEO, the crypto market crash “with no bid side liquidity” alongside a bank run resulted in roughly $4 billion being withdrawn daily — 25% of consumer assets.“I was wrong,” said Bankman-Fried. “Leverage wasn’t ~$5b, it was ~$13b. $13b leverage, total run on the bank, total collapse in asset value, all at once. Which is why you don’t want that leverage.”23) Roughly 25% of customer assets were withdrawn each day–$4b.As it turned out, I was wrong: leverage wasn’t ~$5b, it was ~$13b.$13b leverage, total run on the bank, total collapse in asset value, all at once.Which is why you don’t want that leverage.—— SBF (@SBF_FTX) November 16, 2022Authorities in the Bahamas, United States, and Turkey have begun investigations into the collapse of the major exchange. Officials reportedly discussed extraditing Bankman-Fried from the Bahamas to the U.S. for questioning. It’s unclear whether this reported extradition was related to lawmakers in the House Financial Services Committee saying they “[expect] to hear” from SBF at a December hearing on the matter.Related: FTX collapse: The crypto industry’s Lehman Brothers momentFTX Group started bankruptcy proceedings by filing for Chapter 11 on Nov. 11 in the District of Delaware. The filing included more than 130 companies, including FTX Trading, FTX US, and Alameda Research. According to subsequent filings in bankruptcy court, the exchange could be accountable to more than 1 million creditors.

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DeFi platforms see profits amid FTX collapse and CEX exodus

A week after the fallout from the FTX and Alameda chaos, some on-chain data points are interesting to observe. Although record amounts of Bitcoin (BTC) and Ether (ETH) are leaving the exchanges, not all decentralized applications (DApps) and protocols have shown growth, mainly due to reliance on FTX and Alameda. DeFi earnings highlight positive revenue for some protocolsAccording to Token Terminal’s earnings leaderboard, in the last seven days, three protocols had revenue above $1 million. Ethereum led the on-chain earnings with over $8.5 million total, a sign of strong post-Merge fundamentals. OpenSea was a distant second place to Ethereum, earning $1.5 million, while nine protocols and DeFi platforms earned more than $100,000. Earnings leaderboard. Source: Token TerminalDecentralized perpetual exchanges see increased trading volumeCombined with the migration away from centralized exchanges (CEXs), the volatile crypto market has users trading in record numbers. According to data from Token Terminal, the daily trading volume of perpetual exchanges reached $5 billion, which is the highest daily trading volume since the LUNA and TerraUSD (UST) meltdown in May 2022.Perpetual exchange volume. Source: Token TerminalWhile trading volume increased, the total value locked in DeFi lags Only seven protocols saw a net increase in their total value locked (TVL) over a seven-day period. Gains Network, a perpetual exchange on Polygon, saw the largest seven-day increase at 17.3%TVL sorted descending from 7-day. Source: Token TerminalOne interchain operability protocol, Ren, witnessed a TVL drop of 50% in the last week. As reported by Cointelegraph, Ren partnered closely with Alameda, receiving quarterly funding and keeping its treasury directly on FTX. The protocol itself benefited from Alameda’s locked liquidity in an attempt to improve interoperability. Ren TVL. Source: Token TerminalData also shows that blockchain revenues are rising amid a constant rate of daily active users. Major blockchains saw an increase of over 300% in daily revenue when compared to previous weeks. At the same time, daily active users remained steady at 1 million. The dichotomy between these data points suggests that transactions are happening at a more frequent pace among existing users.Blockchain revenue and daily active users. Source: Token TerminalRelated: FTX collapse followed by an uptick in stablecoin inflows and DEX activityBlockchain revenues do not necessarily equal earningsWhile blockchains saw an increase in revenue,s which is likely primarily due to token emissions, only Ethereum saw positive earnings. Proof-of-stake (PoS) blockchains like Polygon, BNB Smart Chain and Optimism all recorded negative earnings. When PoS blockchains have negative earnings, holders of the tokens are hit with inflationary losses. Blockchain earnings. Source: Token TerminalOn-chain data continues to exhibit strong points with increased activity on decentralized perpetual trading platforms and positive revenue for DeFi protocols. Even though CEX outflows were historic, daily active DeFi users did not increase, but the fact that they remained consistent is notable. The same data also highlighted lagging blockchain earnings (except for Ethereum) and a decrease in TVL. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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'Need to update my LinkedIn' — FTX Ventures head resigns: Report

Amy Wu, an investor in FTX and the head of the firm’s venture capital arm, FTX Ventures, has reportedly resigned her position.According to a Nov. 11 report from The Information, Wu resigned as head of FTX Ventures following the announcement FTX would be moving forward with bankruptcy proceedings in the United States. According to her LinkedIn profile, Wu had been based at FTX Venture’s offices in The Bahamas since January.FTX Ventures’ website along with that of Alameda Research went dark on Nov. 9 amid its parent company’s liquidity crisis and deal with Binance falling apart. Wu said on Twitter at the time that she was learning about events affecting the company at the same time as everyone else through social media, and suggested she would update her LinkedIn profile for new job opportunities.Truth. Need to update my linkedin— Amy Wu (@amytongwu) November 9, 2022Wu’s resignation followed the news 134 companies associated with the FTX Group — including FTX Trading, FTX US and Alameda Research — would be filing for bankruptcy under Chapter 11 in the District of Delaware. Sam Bankman-Fried resigned as CEO in the same announcement, but said “this doesn’t necessarily have to mean the end for the companies.”Related: FTX US resigns from the Crypto Council for InnovationAs a $2-billion venture capital fund aimed at investments in Web3 projects, FTX Ventures backed projects including LayerZero Labs and purchased a 30% stake in SkyBridge Capital. In August, the firm reportedly absorbed the venture capital operations of Alameda Research amid the crypto bear market. Wu said at the time the two firms were still running at “arm’s length.”

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Billionaires lose billions: What's happening with Elon Musk and Sam Bankman-Fried?

In a matter of weeks, two major players in the tech industry have seen their net worth drop by billions of dollars — partly the result of their own business decisions.Sam Bankman-Fried, the now former CEO of crypto exchange FTX, reportedly had a net worth of roughly $24 billion in March and $16 billion as recently as Nov. 7, but no longer even qualifies for a listing on the Bloomberg Billionaires Index. Some reports suggest that with his stakes in crypto and stock trading platform Robinhood, FTX companies, and Alameda Research, SBF could be facing serious financial difficulties in the days to come.Many of the ripple effects from liquidity issues at FTX spread throughout the crypto space within a week. Bankman-Fried said on Nov. 7 that “assets are fine” at FTX in a now-deleted tweet, dismissing many of the reports on the firm’s liquidity as “false rumors.” He subsequently announced that FTX was working on a potential arrangement with Binance to address the “liquidity crunch,” but the deal fell apart within 48 hours. SBF resigned and announced FTX was filing for bankruptcy in the U.S. less than two days later.“FTX now joins the infamous club of centralized crypto entities that went bust this cycle because they took enormous liberties not only with its customers’ funds but also with ethics, integrity, and the very ideals of crypto,” Anto Paroian, CEO and executive director of crypto hedge fund ARK36, told Cointelegraph. “Hopefully, both the industry as a whole and individual crypto users will be able to learn and grow from this experience.”In contrast, Tesla CEO and still the world’s richest person Elon Musk had been teasing an acquisition of social media platform Twitter for months, leading many to speculate the billionaire had no intention of following through. When an agreement was reached in October, Musk purchased the company for $44 billion, with estimates suggesting that he may owe roughly $1 billion in interest expenses annually.Musk had a net worth of more than $300 billion in October 2021 before the acquisition of Twitter and around the same time the price of Tesla stock reached an all-time high of $407.36 in November 2021. In roughly a year, the Bloomberg Billionaires Index showed the Tesla CEO had lost more than $86 billion, dropping his reported net worth to $184 billion at the time of publication.Related: More billionaires turning to crypto on fiat inflation fearsTwitter’s new leader has already implemented a series of controversial policies that have many in the business world questioning Musk’s acumen. He fired many top executives in his first week at the company — including many members of Twitter’s content moderation team — and the platform saw a sudden spike in tweets containing hate speech, leading to reports revenue from advertisers could be at risk.Please note that Twitter will do lots of dumb things in coming months. We will keep what works & change what doesn’t.— Elon Musk (@elonmusk) November 9, 2022One business decision that has the potential to put Twitter at financial risk was to move the platform onto a subscription model, charging users for “verified” blue check marks instead of solely distributing them following an application process. The system led to a number of accounts falsely representing legitimate companies and individuals getting the blue checkmark, including Nintendo of America, video game publisher Valve, and United States President Joe Biden. It’s like this now, I’m sure advertisers will stick around pic.twitter.com/OE8PZxA5zx— David Milner (@DaveMilbo) November 9, 2022

“Elon Musk’s failed tenure at Twitter is a good example of how to repel authoritarian attempts,” said Max Berger, co-founder of activist group IfNotNow. “He lost critical support he needed from pillars of support (advertisers, workers, users). He tried to centralize control, but couldn’t.”

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