Značka: cryptocurrency exchange

Binance hires audit firm that served Donald Trump to verify crypto reserves

Cryptocurrency exchange Binance is working with accounting firm Mazars as part of its proof-of-reserve (PoR) audits triggered by the fall of FTX.Mazars, the accounting firm that worked for former United States President Donald Trump’s company, was appointed as an official auditor to conduct a “third party financial verification” as part of Binance’s PoR updates, the Wall Street Journal reported on Nov. 30.The accounting firm is reportedly already reviewing all of Binance’s publicly shared information on Bitcoin (BTC) PoR and will also be verifying future updates and tokens, a spokesperson for Binance reportedly said. “The first verification update for BTC will be completed this week,” the representative added.Mazars is an international accounting firm headquartered in Paris. Its United States division, Mazars USA, was the longtime accounting firm for Trump and had been involved in a controversy with a House Oversight and Reform Committee’s request for some of Trump’s financial records since 2019. The firm reportedly eventually cut ties with Trump and his family in 2022.The news comes amid Binance moving large amounts of cryptocurrency as part of its PoR audits. On Nov. 28, Binance sent 127,351 BTC, or about $2 billion, to an unknown wallet, with CEO Changpeng “CZ” Zhao subsequently announcing that the transaction was part of the ongoing PoR process.The action has triggered some concerns in the community, as previously, CZ argued that it’s bad news when exchanges have to move large amounts of crypto to prove their wallet address.As previously reported, Binance launched a PoR process and mechanism in response to the crash and bankruptcy of the FTX crypto exchange. On Nov. 25, the firm also published Merkle Tree-backed proof of funds for Bitcoin, which was just one of many Binance’s measures to prove its transparency.Related: OKX releases proof-of-reserves page, along with instructions on how to self-audit its reservesBinance is not alone in putting major efforts to maintain the trust of its customers in the aftermath of the FTX collapse, with many other exchanges like OKX and KuCoin rushing to release their PoR reports as well. In the meantime, some industry observers believe that the existing PoR process by exchanges is largely useless unless they also provide liabilities, which are very hard to fake.Binance did not immediately respond to Cointelegraph’s request for comment.

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Huobi, Poloniex announced strategic partnership despite initial denials of a merger

Huobi and Poloniex announced a strategic partnership on Nov. 30. Reports of a planned merger of the two cryptocurrency exchanges emerged and were denied last week. The two exchanges will “progressively cooperate” on Huobi’s HT coin ecosystem development, connectivity, liquidity sharing and global compliance. Beginning in December, the Huobi Advisory Board will make a monthly evaluation of all Poloniex projects, with top performers potentially directly listed on Huobi, the exchange stated.Talk of a merger began with a tweet from Wu Blockchain. Poloniex is by far the larger of the two exchanges. It is not available to U.S. users.The Poloniex exchange, which Justin Sun acquired from Circle in 2019, will merge with his recently acquired Huobi exchange, according to sources familiar with the matter. Coingecko shows that Poloniex’s daily spot trading volume is only 1/10 of Huobi’s. Exclusive— Wu Blockchain (@WuBlockchain) November 25, 2022The Chinese exchange has seen a number of changes this year. It launched an investment arm in June. Cofounder Leon Li reported in August to be selling his share. Hong Kong-based About Capital bought a controlling share in Huobi in October. Earlier in November, it denied reports of widespread layoffs and resignations. Huobi is reportedly planning to relocate its headquarters to the Dominican Republic. Poloniex and @HuobiGlobal Advisory Board will assess all Poloniex-based projects on a monthly basis. Projects that stand out will have the chance to be listed on Huobi and receive support from both platforms, reaching tens of millions of users. https://t.co/VqdGdbQq4h— Poloniex Exchange (@Poloniex) November 30, 2022

On the same day as the merger announcement, Huobi said it was creating an upgraded affiliates program for influencers, offering Spot commission up to 50% and futures commission up to 60%.Related: Dominica works with Huobi for digital identity programPoloniex reached a $10-million settlement with the United States Securities and Exchange Commission for allegedly selling unregistered securities last year, in a case that was later criticized by Congressman Brad Sherman, a prominent crypto skeptic, as an example of the agency going after “small fish” in its enforcement efforts. Polonium was blocked by South Korean regulators in June. 

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Kraken cuts workforce by 30% in an effort to survive crypto winter

Cryptocurrency exchange Kraken announced on Nov. 30 that it has made one of its “hardest decisions”  and is cutting down its global workforce by approximately 1,100 people, comprising approximately 30% of its total workforce, amid current market conditions.According to CEO and co-founder Jesse Powell, Kraken had to triple its workforce due to the fast-growing crypto ecosystem, and the current pullback takes the size of the company’s team back to where it was 12 months ago. Powell shared in a tweet, “Macro was already tough and we held out but recent industry woes diminished near-term optimism about a crypto rebound.”Rough day at @krakenfx. Headcount rolled back 12 mos. Macro was already tough and we held out but recent industry woes diminished near-term optimism about a crypto rebound. Better positioned now. Glad we were able to take good care of our former colleagues. Been a privilege. ‍♂️ https://t.co/xfwShapS2N— Jesse Powell (@jespow) November 30, 2022Lower trading volumes and fewer client sign-ups amid turbulent market conditions have contributed to Kraken’s decision to cut down its expenses by slowing down hiring efforts and avoiding large marketing commitments. According to the exchange, these changes are necessary “to sustain the business for the long-term while continuing to build world-class products and services in selective areas that add the most value for our clients.”The company stated that employees being let go were given a decent severance package, which includes separation pay covering 16 weeks of base pay, performance bonuses, four months of healthcare coverage including counseling, immigration support and career support, among other benefits. Related: US lawmaker questions major crypto exchanges on consumer protection amid FTX collapseEarlier this year in June, Kraken announced that it would continue to hire over 500 roles in various departments amid a market downturn. The company’s hiring efforts were at the time in stark contrast to major layoff announcements from major blockchain firms such as Coinbase and BlockFi.In support of the decision to continue to expand its staff earlier in the year, Kraken had said: “We have not adjusted our hiring plan, and we do not intend to make any layoffs. We have over 500 roles to fill during the remainder of the year and believe bear markets are fantastic at weeding out the applicants chasing hype from the true believers in our mission.”Current layoffs, however, show a contrasting picture from the CEO’s statements made in June, when he took the opportunity to throw shots at supposed “woke activists” while discussing the company’s decision to hire hundreds of new employees.

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Singapore’s Temasek sees ‘reputational damage’ due to FTX, official says

Singapore government-owned investment firm Temasek has suffered a lot more than just financial losses due to investing in FTX, according to Deputy Prime Minister Lawrence Wong.Wong, who is also the finance minister, believes that Temasek’s $275 million investment in FTX has caused significant damage to the company’s reputation. The official addressed the growing criticism over Temasek’s FTX exposure at a parliament meeting on Nov. 27, according to a report by the South China Morning Post.The prime minister emphasized that the collapse of FTX was a result of a “very badly managed company” as well as possible fraud and misappropriation of user funds.“What happened with FTX, therefore, has caused not only financial loss to Temasek but also reputational damage,” the official said, adding that Temasek has launched an internal investment review to improve processes and draw lessons for the future.Wong stressed that investments by other major institutional investors like BlackRock and Sequoia Capital do not mitigate that reputational damage.Temasek, which is fully owned by the minister for finance but operates independently, said on Nov. 17 that it wrote down its entire $275 million FTX investment. The amount accounted for just 0.09% of Temasek’s $403 billion portfolio as of March 2022. According to Wong, FTX-related losses would not affect investors’ contribution to the net investment returns contribution, which is the amount of the government revenue coming from interest earned on its reserves.Apart from addressing concerns around FTX and Temasek, Wong also argued that Singapore had no ambitions to become a crypto hub but rather seeks to be a “responsible and innovative digital asset player.”“Some of the earlier optimism about blockchain technologies has been proven to be […] not well-placed. I think there’s a more realistic sense of what these technologies can do,” Wong stated. He also emphasized that crypto investors must be prepared to lose all their investments on crypto, adding: “No amount of regulation can remove this risk.”Related: FTX collapse put the Singapore government in a parliamentary hot seatDespite Temasek writing down its investment in FTX, the state-owned company apparently still holds investments in many other industry platforms. Despite not directly investing in crypto, Temasek is known for participating in multiple investment rounds for big crypto companies, including Binance and Amber Group.In August, Temasek also reportedly led a $110 million strategic funding round for the major metaverse and blockchain gaming company Animoca Brands.Temasek did not immediately respond to Cointelegraph’s request for comment.

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Libertex crypto exchange head Vyacheslav Taran dies in helicopter crash in France

Russian billionaire Vyacheslav Taran, president of Libertex Group and founder of Forex Club, died Nov. 25 in a helicopter crash in France while en route from Lausanne to Monaco, Switzerland. He was 53. The helicopter pilot, the only other person aboard the craft, also died.Libertex has confirmed Taran’s death, stating:“It is with great sadness that Libertex Group confirms the death of its co-founder and Chairman of Board of Directors, Vyacheslav Taran, after a helicopter crash that took place en route to Monaco on Friday, 25 November 2022.”Taran, who was trained as a radio engineer, founded the foreign exchange trading platform Forex Club in Russia in 1997. Forex Club became one of the three leading exchanges in the country before the Russian Central Bank closed it and a number of other exchanges in December 2018 for irregularities in their registrations. Forex Club Group continues to operate in more than 100 other countries. The Libertex trading platform was established in 2012 as part of the Forex Club Group and registered in Cyprus. It offers a wide range of financial products, including cryptocurrency trading and “in-app crypto mining software” and is a sponsor of Bayern Munich football club. According to Russian media, Taran was associated with the YouHodler wallet and Wirex app and card, as well as several other investment and real estate companies. Taran was also the founder of the Change One Life charitable foundation, which provides assistance to Russian orphans and adoptive families.Russian billionaire, 53, is killed in helicopter crash near Monaco in latest crypto mystery death – ‘after another passenger cancelled at the last minute’Vyacheslav Taran, 53, died after the helicopter he was travelling in crashed near the resort town of pic.twitter.com/LwGX089ttM— MassiVeMaC (@SchengenStory) November 29, 2022Taran is the third crypto executive to die unexpectedly in recent weeks. Amber Group cofounder Tiantian Kullander (TT) died Nov. 23 in his sleep at the age of 30, and MakerDAO cofounder Nikolai Mushegian drowned in Puerto Rico Oct. 28 at the age of 29. Taran is also the latest in a longer string of Russian businessmen to die under various circumstances. Taran’s death has led to some speculation in the press. The helicopter accident that claimed Taran’s life in under investigation; It took place in good weather conditions with an experienced pilot. According to France Bleu, a second passenger was booked for the flight but cancelled at the last minute. The Ukrainian new agency Unian alleged, “According to press accounts, Taran was a staff specialist of Russian foreign intelligence and was responsible for laundering Russian Federation funds through a system of cryptocurrency operations.” Unian did not provide links to those media. It stated his net worth at $20.2 billion.Taran is survived by his wife Olga and three children, including an adopted son.

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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 Fiasco boosts Bitcoin ownership to new highs: analysts weigh in

The bear market has inspired the little guy to accumulate vast amounts of Bitcoin (BTC).  The number of wallets holding 1 BTC or more recently hit new highs while those with 10 BTC or less are setting accumulation records.However, to what extent are these newly minted “wholecoiners” taking custody of their private keys? Has the recent spate of insolvency among centralized exchanges (CEX) encouraged Bitcoin enthusiasts to move their Bitcoin into cold storage, removed from third party risk?For Checkmate, lead analyst at Glassnode, the data would point to this result. Checkmate told Cointelegraph, “Overall looks like, at least a short-term, movement towards self-custody. Partly out of concern for CEX solvency.” “Last few weeks have been the largest monthly decline in exchange balances in history, peaking at 177.9k BTC/month in withdrawal volume.”He also shared that withdrawals from exchanges have made new records, as users have taken thousands of Bitcoin from exchanges. The spike is shown in red on the graph. Customers withdrawing Bitcoin from exchanges has impacted exchange supply. The number of Bitcoin available on exchanges has “fallen to its lowest % of supply (11.99%) since Dec 2017. This means pretty much every coin that flowed in over the last 12 months, has flowed out,” Checkmate observed.Plus, according to Glassnode data, withdrawals from exchanges accounted “for ~30% of all transactions in recent weeks.” The data would suggest an overall shift to self-custody: Bitcoin is being sent to hot or cold wallets.When Bitcoin investors “withdraw” from exchanges, it can be to an offline hardware wallet, sometimes called cold storage, or an online wallet (hot). Hardware wallets or signing devices are tools that manage a user’s cryptocurrency wallet and private keys. Popular hardware wallets include Ledger, Trezor and ColdCard; hot wallets include Blue Wallet or Exodus Wallet. Josef Tětek, Bitcoin analyst at Trezor, one of the world’s largest hardware wallet providers has observed a considerable drive in sales in the past mont. Tětek told Cointelegraph, “We have seen a dramatic rise in interest in Trezor devices and new Trezor Suite downloads. Our sales are hitting historic highs over the past few weeks.”“Normally, a bear market is rather a quiet period for us, so this uplift in sales only shows how big of an impact the collapses of FTX and BlockFi have on people’s trust in custodian services.”Cointelegraph had previously reported that Trezor benefited from a 300% increase in hardware sales due to the FTX fiasco. That’s despite the price per Bitcoin grinding down to the mid-teens. For Swiss-based Bitcoin exchange Relai, it’s a similar story; the company shared with Cointelegraph that it’s seen plenty of new users as well as increased volume since FTX shenanigans. Related: First time Bear market? Advice from Bitcoin Bull Michael SaylorImo Bábics, the Chief Marketing Officer at Relai told Cointelegraph: “Well, we are non-custodial, to begin with. We have definitely noticed more people buying bitcoin due to the FTX crash.”November was the best month in the Bitcoin exchange’s history. Relai added, “We know from our friends at ShiftCrypto that there’s been a huge increase in demand for their BitBoxes.” ShiftCrypto is a hardware wallet provider like Trezor. The company’s social media feeds shared countless stories of users who recently became Bitcoin self-custody advocates following the FTX fiasco.

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Bitcoin capitulations abound — Data shows realized and unrealized losses at record-highs

Being three weeks removed from the FTX collapse, Bitcoin (BTC) analysts are combing through data to decipher whether more selling will continue or if a bear market floor has been reached. One thing miners, short-term and long-term holders have in common is they are losing in the Bitcoin market right now. According to on-chain analysis from Glassnode, the scale of both realized and unrealized losses amongst Bitcoin holders is one of the heaviest capitulation events in BTC’s history. Capitulation is hindering all groups from the increasing number of bankruptcies and dwindling miner revenue. Bitcoin’s realized losses fourth largest on record while unrealized losses increaseNovember recorded $10.8 billion in 7-day realized losses for Bitcoin. The largest recorded realized loss in Bitcoin’s history is June 2022 when $19.8 billion was recorded. Such losses show that a large volume of Bitcoin has changed hands at discounted prices.Bitcoin realized 7-day losses. Source: GlassnodeA popular crypto investing saying is “you cannot lose if you do not sell.” Unrealized losses track the entire Bitcoin market versus total market capitalization. The November 2022 56% unrealized loss is the largest in the current bear market. In 2014-2015, unrealized losses hit an all-time high for Bitcoin holders at 86%. The current unrealized losses are the fourth largest in Bitcoin’s history.According to Glassnode analysts: “This metric has recently peaked at 56%, which is the highest for this cycle, and comparable to prior bear market floors.”Bitcoin unrealized losses 7-day moving average. Source: GlassnodeBlock times slow down as Bitcoin miners struggle Bitcoin investors are not the only group capitulating in the current market. Bitcoin miners are struggling to remain profitable with the depressed prices.There it is. Hash Ribbon miner capitulation confirmed. Triggered by the $10B FTX fraud and subsequent collapse, Bitcoin miners are now going bust and Hash Rate is trending down. pic.twitter.com/TorX7PzrNu— Charles Edwards (@caprioleio) November 28, 2022Since Bitcoin miners are under pressure to remain financially viable, this affects the BTC mining hash rate. A reduction in Bitcoin’s hash rate slows down BTC transactions. According to HashRate Index, block times reached over 11 minutes. Bitcoin’s hashrate is dropping like a rock↘️Bitcoin’s 7-day average hashrate is currently 236 EH/s, a 14% decrease from its 274 EH/s ATHBlock times are sluggish as a result: 11 minutes and 12 seconds on average this epochhttps://t.co/JN7OmpJ8X0 pic.twitter.com/ckxqEqOGqX— Hashrate Index (@hashrateindex) November 28, 2022

Despite the current challenges, analysts believe that capitulation is healthy for starting the next bull run. Glassnode notes:“One consistent event which motivates the transition from a bear back towards a bull market is the dramatic realization of losses, as investors give up and capitulate at scale.”With so many groups currently at a loss at this stage of the bear market post-FTX collapse, Bitcoin and overall market sentiment will need to improve to spur new money to drive a bull run. Without improved sentiment, the capitulation may not match previous Bitcoin cycles. The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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FTX collapse impacts Miami’s nightclub scene: Report

The fallout from the collapse of FTX spans beyond the Web3 and crypto ecosystem. Reports gathered by the Financial Times suggest that nightclubs in Miami have been negatively affected by the collapse of the once-reputable cryptocurrency exchange.According to nightclub owners, young, nerdy crypto bros went from lavishly spending on champagne showers and buying $50,000 tables at clubs to completely vanishing from the nightlife scene.Andrea Vimercati, director of food and beverage at the Moxy Hotel group, told the Financial Times: “They were ordering 12 or 24 bottles of the most expensive champagne and just showering themselves without even drinking.” According to the nightclub staff, the young, nouveau riche entrepreneurs walked around the clubs pulling out their digital wallets and bragging about the amount of money they were making.However, the unexpected implosion of FTX, loss of funds and fall in the value of cryptocurrencies have completely changed the nightlife scene in Miami. The young crypto entrepreneurs who once splurged in nightclubs now appear to be visibly absent following the collapse of FTX. Gino LoPinto, operating partner at Miami nightclub E11even, shared that once his establishment started accepting cryptocurrency payments, it processed $6 million worth of transactions between April and December 2021. However, over the last three months, the club has only recorded about $10,000 worth of transactions. Related: FTX collapse put the Singapore government in a parliamentary hot seatSince the collapse of FTX, many companies and individuals have been affected. On Nov. 28, BlockFi announced that it had filed for Chapter 11 bankruptcy, citing the collapse for its troubles. On Nov. 15, Cointelegraph reported that FTX-owned Japanese cryptocurrency exchange Liquid took to Twitter to officially announce it had suspended fiat and crypto withdrawals on its Liquid Global platform.

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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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Line shuts down crypto exchange to focus on blockchain and LN token

The Japanese messaging giant Line has decided to shut down its cryptocurrency exchange business amid the ongoing crypto winter.Line-owned crypto exchange Bitfront officially announced on Nov. 27 a plan to completely close down the platform by March 2023.According to the statement, the closure was driven by the continued cryptocurrency bear market and other issues in the crypto industry.Despite the exchange’s closure, Line will still continue to run its other blockchain ventures, including the Line blockchain ecosystem and Link (LN) token, the announcement notes, stating:“Despite our efforts to overcome the challenges in this rapidly-evolving industry, we have regretfully determined that we need to shut down Bitfront in order to continue growing the Line blockchain ecosystem and Link token economy.”Bitfront also emphasized that the decision to close the exchange was made for the “best interest” of the Line ecosystem and is unrelated to the ongoing industry scandal involving the FTX exchange.According to the announcement, Bitfront will take a gradual approach to suspend its services, stopping signups and credit card payments on Nov. 28. The platform then plans to suspend additional deposits and interest payments of LN interest products and proceed with the related LN withdrawals by mid-December.By the end of December, Bitfront aims to stop all cryptocurrency and fiat deposits alongside trading suspension and cancellation of open orders. Total suspension of withdrawals is scheduled for March 31, 2023, while customers would be still able to claim their assets in different jurisdictions of the United States.As previously reported by Cointelegraph, Line launched its proprietary crypto exchange in 2018 as a Singapore-based business. Originally known as BitBox, the company was rebranded to Bitfront and moved to the U.S. in February 2020. The exchange has been downscaling some of its operations in recent years, suspending services in South Korea in August 2021.Related: Argo Blockchain is at risk of closing if it fails further financingDespite being a smaller crypto exchange, Bitfront has significant trading volumes at the time of writing. According to data from CoinGecko, Bitfront’s daily trading volume amounts to $55 million, with the exchange trading a total of five cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Link, Litecoin (LTC) and Tether (USDT).

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Trouble in the Bahamas following FTX collapse: Report

Following the collapse of crypto exchange FTX, which was headquartered in the island nation of Bahamas, Bahamians are reportedly still trying to find a way to make sense of everything, while remaining optimistic about the future. According to a report by the WSJ, the island nation — which encouraged cryptocurrency companies to feel at home with their “copacetic regulatory touch” — has been rocked by the implosion of FTX. The Bahamas, which was also hard hit by hurricane Dorian in 2019 and the pandemic shortly afterward in 2020, was already struggling to find ways to strengthen its economy which relies heavily on tourism and offshore banking for a bulk of its GDP. It appeared that the prime minister of the Bahamas, Philip Davis, and his government believed crypto could play a critical role in the island’s economic recovery. Now, the community suggests that FTX’s sudden implosion has left a trail of unemployment on the tiny 80-square-mile island. While functioning at full capacity, FTX provided employment for locals, as it reportedly spent over “$100,000 a week on catering” and also set up a private shuttle service to transport workers around the island. FTX also hired a number of local Bahamians in areas such as logistics, events planning, and regulatory compliance, according to the WSJ. With the collapse of FTX, many high-spending foreigners who worked for the company and once boosted the local economy have reportedly fled the island, leaving Bahamanian security guards to now guard “nearly vacant buildings.”Related: SBF, FTX execs reportedly spend millions on properties in the BahamasIn the aftermath of the fall of FTX, some crypto community members have said they feel no sympathy for the effects of the collapse of FTX on the tiny island nation.A contributor on the Hacker news with the username matkoniecz commented; “Given that Bahamas help rich people and companies to evade taxes, my sympathy to negative consequences of that are limited.” Another user going by the handle Exendroinient00 shared, “Nothing wrong with inviting every scammer to do scamming on your islands,” in reference to the island’s laws, which seem to incentivize offshore banking activities on its island. On Oct. 18, Cointelegraph reported that the Bahamian securities regulator ordered the transfer of FTX’s digital assets to a wallet owned by the commission “for safekeeping.”According to a statement by the Royal Bahamas Police Force sent to Reuters on Nov 13, an investigation of possible criminal misconduct over the insolvency of FTX is underway by financial investigators and the Bahamas securities regulators. 

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