The FTX News Update Megathread (Updated – December 2, 2022)

Folks, there’s a ton of stuff going on out there with FTX ($FTT.X) and the contagion that could or could not spread. Until more clarity and certainty is available, we thought, instead, to share with you some quick bullets you can follow up on.

All The Big News – December 2, 2022

Accusation That FTX Misused Customer Funds Presents a ‘Prison’ Problem, Says Crypto Legal Expert Jeremy Hogan From The Daily Hodl

U.S. Trustee asks bankruptcy court to appoint FTX trustee From The Block

FTX Japan drafts plan to return client funds From Cointelegraph

Sam Bankman-Fried’s still sorry, but now he says his memory isn’t great From The Block

FTX Contagion Haunts Yet Another Crypto Trading Firm From Cryptopotato

Sam Bankman-Fried says not aware of any improper use of funds in FTX downfall From Forkast

All The Big News – November 25, 2022

FTX founder Sam Bankman-Fried quietly purchased major Democratic data firm From Fox News

FTX CEO stresses Bankman-Fried, Ellison no longer involved in operations From The Block

Alameda bought this obscure OTC desk to handle FTX banking From Protos

BlackRock Chief Executive Fink said firm invested $24 million in FTX From The Block

Report: Former billionaire Sam Bankman-Fried says he’s down to $100,000 in bank account From USA Today

Sam Bankman-Fried says he isn’t sure what happened to his $100 million stake in Twitter, shortly after Elon Musk claimed the crypto mogul didn’t have any shares From Yahoo! Finance

All The Big News – November 25, 2022

Online bank SoFi struggles amid FTX-inspired crypto probe From Protos

FTX founder Sam Bankman-Fried will speak during the New York Times’ annual DealBook Summit despite ongoing FTX investigations. From CryptoNews

China was one of FTX’s biggest clients, bankruptcy filings show. From Bitcoinist

Here’s how much has been recovered since FTX’s bankruptcy filing. From CryptoPotato

All The Big News – November 23, 2022

SBF says he is deeply sorry for collapse in letter to FTX team. From Cointelegraph

Celebrity athletes Tom Brady and Steph Curry in more FTX hot water. From BeInCrypto

FTX Group hold total cash balance of $1,240,000,000: Report. From The Daily Hodl

US lawmakers ask DOJ to hold FTX execs accountable ‘to the fullest extent of the law’. From Cointelegraph

InsureAce to pay out on FTX claims, launches crypto deposit insurance to protect CEX users. From CryptoSlate

All The Big News – November 21, 2022

Sam Bankman-Fried tries to broker FTX bailout from his home in the Bahamas. From CNBC

FTX owes nearly $3.1 billion to its 50 top creditors. From CNN

US aid to Ukraine was not laundered by crypto exchange FTX. From USA Today

FTX exploiter converts million in Ethereum to Alameda Research-linked Ren Bitcoin tokens. From CoinDesk

Liquid Exchange, a crypto exchange backed by FTX, suspends trading. From Bitcoinist

All The Big News – November 18, 2022

New FTX CEO John J. Ray III says FTX’s bankruptcy was “A complete failure, worse than Enron.” From Protos

Report: FTX and Alameda likely colluded from the very beginning. From Cointelegraph

FTX’s fall was probably sparked by Terra’s ($LUNC.X), a report reveals. From Bitcoinist

Delaware Federal judge to hear FTX Trading case on Tuesday. From Forkast

FTX advisers find only $740 million crypto, while the liquidity gap stands at $8 billion. From U.Today

All The Big News – November 16, 2022

Daily Mail: FBI is planning to extradite SBF. From The Daily Mail

No joke, SBF says he wants to raise liquidity and restart business. From U.Today

R. Kiyosaki calls FTX founder Bankman-Fried the ‘Bernie Madoff of crypto.’ From Finbold

Compliance firm Argus reports that Alameda Research used insider information and front running to accumulate more than $60 million in tokens ahead of their listing on FTX. From Decrypt

The Block, citing Bloomberg, reports that Temasek, Sequoia, and SoftBank take more than $600 million in FTX write-downs. From The Block

The same attorney that sued Mark Cuban for promoting Voyager ($VGX.X) is now targeting celebrities who promoted FTX. Tom Brady, Steph Curry, and Larry David are some names identified in the lawsuit. From The Block

Crypto lender BlockFi pauses platform activity and prepares for bankruptcy. From CryptoNews

Crypto lender Salt ($SALT.X) halts withdrawals citing FTX impact. From The Block

FTX’s Australian Finance License was revoked. From BeInCrypto

FTX’s collapse is crypto’s version of Enron says former US Treasury Secretary. From The Daily Hodl

Crypto community lambasts New York Times ‘puff piece’ and ‘love letter’ to SBF. From BeInCrypto

Crypto community demands investigation into Gary Gensler’s possible ties to FTX. From Crypto Briefing

Golden State Warriors and Miami Heat axe FTX deals. From Blockworks 👿

All The Big News – November 14, 2022

Revelations, rumors and news continue to pour in. Since the beginning of SBF’s and FTX’s fall, the news has become mainstream. These are some of the major updates since Friday.

U.S. prosecutors in New York investigate FTX downfall. From Reuters

Rumors flew over the weekend that SBF fled to Argentina. When asked by Reuters if he fled the Bahamas, SBF said, “Nope.” From CNBC

Report: Sam Bankman-Fried is ‘under supervision’ in Bahamas. From Cointelegraph

Bahamas Police begin an investigation into FTX for Criminal Misconduct. From CryptoNews

Reuters reported that SBF transferred nearly $10 billion in client funds to his Alameda Research trading firm. Between $1 and $2 billion is unaccounted for. From Reuters

The Financial Times shared an alleged copy of an FTX balance sheet indicating FTX only had $900 million of assets to sell ‘easily’ – mostly in Robinhood ($HOOD) stock –  despite having nearly $9 billion in liabilities. From The Financial Times

Musk told over 60,000 listeners on Twitter that his bullshit meter was redlining’ when he talked with SBF. Further, Musk dismissed even close associates praising SBF. “Then I was like, man, everyone, including major investment banks – everyone was talking about him like he’s walking on water and has a zillion dollars. And that [was] not my impression. <…>That dude is just – there’s something wrong, and he does not have capital, and he will not come through. That was my prediction.” From Finbold

Payment processor Plaid ($PLAID.P) announced on Twitter (November 12) that FTX’s access to Plaid’s products and financial information was terminated. 

FTX hacked, allegedly, for $477 million? Nothing is 100% clear on that topic. Cryptocurency news site, Decrypt, aggregated a significant amount of Twitter feed data from individuals tracking and sharing massive crypto transfers from FTX to other wallets. Even Elon Musk took to Twitter to post, “FTX meltdown/ransack being tracked in real-time on Twitter.” Hacken.io’s CEO Dyma Budorin posted the following on the hacker, citing the exchange Kraken was used – which means the identity is known because Kraken uses AML/KYC. 

US-based cryptocurrency exchange Kraken froze all accounts tied to Alameda Research and FTX on Sunday. 

The past has a way of bringing back trouble. A 2018 slide deck from Alameda Research showed Alameda told potential investors that offers and loans had no downside, no risk, and high returns. From CryptoGlobe

Visa ($V) terminates FTX Debit Card Program. From CryptoPotato 👎

All The Big News – November 11, 2022

FTX’s Twitter released a statement that they have entered Chapter 11 Bankruptcy. 

Minnesota Congressman Tom Emmer took to Twitter and alleges that SEC Chair Gary Gensler collaborated with SBF to gain a regulatory monopoly. Emmer says his office is looking into those reports. He further criticized Gensler for going on CNBC and creating more fear.

A mega-thread from SBF’s Twitter highlights his mistakes, granting clarity and admitting a huge liquidity crisis.

Bloomberg: FTX.US employees are reportedly trying to sell assets without SBF’s inclusion. The attempted sales include big-ticket assets like the clearing platform Embed and the naming rights to a Miami, FL arena – most likely the FTX Arena, where the Miami Heat play. From The Block

FTX.US’s website and, reportedly, the app shared the following message/alert: “Trading may be halted on FTX US in a few days. Please close down any positions you want to close down. Withdrawals are and will remain open. We will give updates as we have them.” From The Daily Hodl

The Financial Services Agency (FSA) of Japan ordered FTX Japan to suspend its derivatives business and prevent any new deposits until December 9, 2022. From CoinTelegraph

The Bahamas Securities Commission (BSC) froze FTX Digital Markets (FTX.com) and related parties’ assets. The BSC also suspended their registration and got approval from the Bahamian Supreme Court to appoint a liquidator. From CoinTelegraph

On-chain analytics firm, Glassnode, took Twitter and reported large outflows of Bitcoin ($BTC.X) were in excess of 75% from FTX. 

Reuters reports that FTX used customer funds to prop up SBF’s Alameda Research. From Rueters

SEC Chair Gary Gensler spoke with Aaron Ross Sorkin, a CNBC’s Squawk Box host. Gensler called the field (crypto) “… significantly non-compliant.” From CNBC’s YouTube channel

CEO of Jefferies Financial Group, Richard Handler, shared screenshots on Twitter allegedly between him and other redacted parties (possibly SBF was included in the emails). Richard Handler wanted to warn FTX about their problems back in July 2022.

As the news continues to pile up, we’ll do our best to keep you updated. 🍿

Learn More About...

More in   Crypto

View All

Technically Speaking – January 9, 2023

Lots of nice big breakouts and moves across the board since last week. Looking at the top 25 cryptocurrencies by market cap, all are in the green for the past seven trading days, with 20 out of 25 in double-digit percentage gains. 

However, analysts warn that a pause in the near-term upward momentum may occur. Not necessarily a cessation of the current bullish momentum but a pause as the rest of the market digests what the moves mean. We’re going to look at key price levels that investors, traders, and analysts are looking at as resistance. ✋

Read It

Technically Speaking – January 30, 2023

Some of the strongest selling pressure of 2023 occurred today, putting traders and investors on edge as they digest today’s move. 🔻

A good number of analysts believe profit-taking is beginning before the major fundamental news events later this week – and there are some big ones.

Read It

Polygon Selling Risk? On-chain Inflows Increase

On-chain analysis involves several metrics that can be daunting for someone new to cryptocurrencies. So don’t get freaked out about the word. 🤔

Analysts often interpret inflows as bearish because crypto going to an exchange is usually sold.

Read It