Category Archives: Cryptocurrencies

Founder of failed crypto exchange FTX apologises to ex-employees

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Sam Bankman-Fried continues to say firm’s downfall can be solely explained by misplaced $8bn

The founder of the failed crypto exchange FTX has written to its former employees apologising for his role in its collapse and continuing to insist its downfall can be solely explained by a misplaced $8bn (£6.7bn).

In the letter, first published by the industry news site CoinDesk, Sam Bankman-Fried wrote: “I deeply regret my oversight failure. In retrospect, I wish that we had done many many things differently … I’m going to do what I can to make it up to you guys – and to the customers – even if that takes the rest of my life.”

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New FTX boss, who worked on Enron bankruptcy, condemns ‘unprecedented failure’

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US corporate restructuring expert John Ray says ‘never in my career have I seen such a complete failure of corporate controls’

In a stinging court filing posted on Thursday John Ray III, the new boss of the bankrupt crypto exchange FTX, said the company had suffered an “unprecedented and complete failure of corporate controls”.

Ray has overseen some of the biggest bankruptcies ever, including the collapse of the energy giant Enron, and has 40 years of experience in restructuring companies. He said he had never seen anything as bad as FTX.

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China circles El Salvador’s economy as country edges toward crypto plunge

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President Nayib Bukele bet on bitcoin and its tumbling value has put the Central American country in a financially precarious spot

As crypto-Twitter cascaded with apocalyptic memes about the bankruptcy of cryptocurrency exchange FTX and the sharp drop in the bitcoin price, one account has remained notably silent on the topic.

Unlike in previous crashes, the president of El Savlador, Nayib Bukele, who made bitcoin legal tender a year ago, did not exhort his followers to “buy the dip”. The laser eyes, popular among crypto currency traders, have long since been removed from his Twitter profile.

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Crypto exchange FTX expects to have more than 1m creditors

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Bankruptcy filing says ‘questions arose’ about founder Sam Bankman-Fried’s leadership

The collapsed crypto exchange FTX expects to have more than 1 million individual creditors, the company has said in its first bankruptcy filing, scattered across more than 100 companies in the wider group.

According to the filing at the bankruptcy court in the US state of Delaware, where FTX US is based, Sam Bankman-Fried, the founder and chief executive, stepped down at 4.30am on Friday, “after consultation with his own legal counsel”.

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Sam Bankman-Fried’s $40m Bahamas penthouse reportedly up for sale

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Entrepreneur at center of FTX scandal put luxury residence up for sale the same day crypto exchange filed for bankruptcy

Sam Bankman-Fried, the crypto trader entrepreneur at the center of the FTX scandal, reportedly put his luxury $40m Bahamas penthouse up for sale on Friday – the same day the cryptocurrency exchange filed for bankruptcy.

Bankman-Fried’s penthouse – “the Orchid”, located in Albany, an exclusive private community in Nassau – was listed by real estate agent Seaside Bahamas at $39,500,000. The offering was first reported on Twitter by Autism Capital.

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FTX assets frozen by Bahamas regulator as crypto exchange fights for survival

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Founder Sam Bankman-Fried races to find funds to fill multibillion-dollar hole in exchange

The Bahamas securities regulator has frozen the assets of the Bahamas subsidiary of FTX, as the world’s second largest cryptocurrency exchange struggles for survival.

The Securities Commission of the Bahamas said on Thursday it had frozen the assets of FTX Digital Markets and related parties, as well appointing a liquidator for the unit.

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Binance pulls out of FTX merger sending cryptocurrency prices plunging

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The deal was conditional to due diligence of FTX’s balance sheet which raised enough concerns for Binance to back out

Cryptocurrency prices plunged for a second-straight day on Wednesday after crypto exchange Binance announced it was pulling out of its deal to purchase its failing rival FTX Trading.

Bitcoin and other cryptocurrencies were broadly lower on rumors and news reports that the Binance-FTX deal was in trouble. The CEOs of the two exchanges – Sam Bankman-Freid of FTX and Changpeng Zhao of Binance – had publicly agreed to a merger Tuesday, pending the ability for Binance to perform due diligence of FTX’s balance sheet.

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Terra founder wanted by Interpol tweets he is making ‘zero effort’ to hide

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Search for crypto entrepreneur Do Kwon after Luna and UST collapse drags down rival currencies

The crypto entrepreneur Do Kwon has denied being in hiding, even as Interpol issued a “red notice” for his arrest after the collapse of the Terra project he founded.

After South Korean prosecutors said he was “obviously on the run”, Kwon tweeted that he was making no attempt to evade law officers. “I’m writing code in my living room … I’m making zero effort to hide,” he said. “I go on walks and malls, no way none of [crypto Twitter] hasn’t run into me the past couple weeks.”

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New bill vows to stop kleptocrats ‘treating UK as their safe deposit box’

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Proposed reforms previously delayed by Boris Johnson reannounced amid accusations Tories are soft on ‘dirty money’

Companies House will be given new powers to challenge incorrect or fraudulent claims made by kleptocrats and their agents in an economic crime bill that was previously delayed by Boris Johnson a few weeks before Russia invaded Ukraine.

The new bill – the second of two that had to be hurriedly reannounced amid accusations the government had gone soft on dirty money – is backed by the new security minister, Tom Tugendhat.

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South Korean founder of failed cryptocurrency Terra denies he is ‘on the run’

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Do Kwon’s whereabouts are still unknown since a South Korean court issued an arrest warrant earlier this week

Do Kwon, the South Korean founder of the failed cryptocurrency Terra wanted by police, has denied he was on the run after Singapore investigators said he was not in the city-state as had been believed.

Kwon’s whereabouts have been thrown into question after a statement from Singapore police late on Saturday, and his tweets did not reveal where he was.

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Coinbase employee mired in first insider trading case involving cryptocurrency

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Rohan Wahi, the brother of a former product manager at the company, has pleaded guilty to wire fraud conspiracy charges

The brother of a former Coinbase Global Inc product manager pleaded guilty on Monday to a wire fraud conspiracy charge, in what US prosecutors have called the first insider trading case involving cryptocurrency.

Nikhil Wahi, 26, admitted during a virtual court hearing before US district judge Loretta Preska in Manhattan that he made trades based on confidential Coinbase information.

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UK forces crypto exchanges to report suspected sanction breaches

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New rules in response to Russia’s invasion of Ukraine cover all notionally valuable digital assets

Crypto exchanges must report suspected sanctions breaches to UK authorities under new rules brought in amid concerns that bitcoin and other cryptoassets are being used to dodge restrictions imposed in response to Russia’s invasion of Ukraine.

Official guidance was updated on 30 August to explicitly include “cryptoassets” among those that must be frozen if sanctions are imposed on a person or company. As well as digital currencies, such as bitcoin, ether and tether, cryptoassets could include other notionally valuable digital assets such as non-fungible tokens.

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US sanctions Tornado Cash over fears of aiding North Korean hackers

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US treasury says popular cryptocurrency service reportedly laundered more than $7bn worth of virtual currency

The United States on Monday imposed sanctions on Tornado Cash, a popular cryptocurrency service that allows users to mask their transactions, accusing it of helping hackers, including from North Korea, to launder proceeds from their cybercrimes.

A senior treasury department official said Tornado Cash, one of the largest virtual currency “mixers” identified as problematic by the treasury, has reportedly laundered more than $7bn worth of virtual currency since it was created in 2019.

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Former US Coinbase employee and two others charged with insider trading

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Cryptocurrency exchange manager and his brother arrested in Seattle in what is described as the first case of its kind

A former Coinbase employee and two others have been charged in what federal authorities described as the US government’s first cryptocurrency insider trading case.

Ishan Wahi, a product manager at the cryptocurrency exchange, and his brother Nikhil Wahi were arrested in Seattle on Thursday. They and a third defendant, their friend Sameer Ramani, who remains at large, also face civil charges from the US financial watchdog, the Securities and Exchange Commission (SEC).

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Energy use from US cryptomining firms is contributing to rising utility bills

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An investigation revealed that companies use enough energy to power Houston, and contribute to growing carbon emissions

The largest US cryptomining companies have the capacity to use as much electricity as nearly every home in Houston, Texas; energy use that is contributing to rising utility bills, according to an investigation by Democratic lawmakers.

Cryptomining is a highly energy intensive process involving the use of specialized computers running constantly to solve complex math problems in order to create new virtual coins.

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EU moves to rein in ‘wild west’ of crypto assets with new rules

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MiCA law contains measures to guard against market abuse and manipulation

The EU has moved to rein in the “wild west” of crypto assets by agreeing a groundbreaking set of rules for the sector.

Representatives from the European parliament and EU states thrashed out an agreement on Thursday that contains measures to guard against market abuse and manipulation, as well as requiring that crypto firms provide details of the environmental impact of their assets.

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North Korean hackers thought to be behind $100m cryptocurrency heist

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If confirmed, last week’s attack would be the eighth this year – involving $1bn in stolen funds – that could be confidently attributed to North Korea

North Korean hackers are thought to be behind last week’s theft of as much as $100m in cryptocurrency from a US company, as the regime steps up attempts to secure funding for its nuclear and ballistic missile programmes.

The assets were stolen on 23 June from Horizon Bridge, a service operated by the Harmony blockchain that allows assets to be transferred to other blockchains, three digital investigative firms have concluded.

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Trillion-dollar crypto collapse sparks flurry of US lawsuits – who’s to blame?

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Kim Kardashian and Floyd Mayweather among those being sued, but prosecuting fraud in the crypto arena is notoriously difficult

With investors worldwide looking at a collective $1.5tn in recent cryptocurrency losses, a blizzard of class-action lawsuits are being prepared. One big question is: who, if anyone, is to blame – and who could be held to account?

With inflation and interest rates rising, the best-known cryptocurrencies have been hit with heavy and continuing losses: Bitcoin has lost more than 50% of its value this year; Ethereum, its largest rival, is down 65%; and the total value of crypto assets has dropped to less than $1tn from its November 2021 peak of $3tn. US federal regulators say 46,000 people have reported losing $1bn in crypto to scams since January 2021.

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Jay-Z’s bitcoin school met with skepticism in his former housing project: ‘I don’t have money to be losing’

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The hip-hop mogul loves to rap about his roots in Brooklyn’s Marcy housing projects. But classes in cryptocurrency show the billionaire is out of touch, residents say

Marcy Houses, the 28-acre public housing development in Brooklyn’s Bedford-Stuyvesant neighborhood, is best-known as a pillar of rapper-turned-mogul Jay-Z’s New York persona. Built in 1949 as part of a push by the New York City Housing Authority to house the city’s low-income residents, Marcy had fallen into a state of dangerous disrepair by the 1970s when Jay-Z, whose real name is Shawn Carter, was growing up there.

“Where I’m from, Marcy son, ain’t nothing nice,” he raps in “Where I’m From”. “Marcy me, just the way I am always gonna be,” he declares in 2017’s Marcy Me.

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Bitcoin withdrawals temporarily suspended in volatile day for crypto market

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Value of assets dips below $1tn after Celsius Network halts withdrawals over ‘extreme’ conditions

The cryptocurrency market has endured another day of volatility as the Binance exchange temporarily suspended bitcoin withdrawals and the total value of the digital asset market dipped below $1tn (£820bn), after a cryptocurrency lender stopped customers from taking back their funds.

The cryptocurrency lending platform Celsius Network halted withdrawals because of “extreme market conditions”, prompting a sell-off.

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