Daily Archives: December 23, 2022, 9:34 am

FTX Friends Flip on SBF – Bloomberg

Of course there will be several FTX movies, and maybe the most cinematic scene in the whole story is the meeting that Caroline Ellison, the chief executive officer of Alameda Research, FTX’s affiliated trading firm, held to tell her employees that they’d been stealing FTX customer money. Imagine! Imagine coming into the company all-hands meeting at the lucrative trading firm…

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SEC’s Crypto Crackdown Is Just Getting Started After FTX Blowup

Gensler chided platforms for not walling off the different parts of their business, such as custody and market-making functions. He also said client funds often aren’t being properly segregated — a problem that’s gained a lot of attention following the failure of FTX. *** On Thursday, Gensler also took issue with so-called proof-of-reserves reports, which some crypto firms publish to…

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Sam Bankman-Fried Bail: $250M Package Doesn’t Mean He Has That Much Money – Bloomberg

FTX co-founder Sam Bankman-Fried’s $250 million bail package is one of the largest in US history, but it doesn’t mean he actually has to put up that kind of money. At Bankman-Fried’s bail hearing on Thursday in federal court in Manhattan, both the prosecution and defense agreed that the former billionaire’s assets have “diminished significantly.” Bankman-Fried has said he may…

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FTX Customer Committee Taps Paul Hastings for Chapter 11 Case – WSJ

A committee representing bankrupt crypto exchange FTX’s unsecured creditors, including millions of its customers, has hired a legal adviser to look out for their interest in bankruptcy. The nine-member committee has hired Paul Hastings LLP after taking pitches from various law firms for the role, according to people with knowledge of the matter. A process to select a financial adviser…

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Even After FTX, S.E.C. Chair Sees No Need for New Crypto Laws – The New York Times

The swift collapse of the cryptocurrency empire FTX is prompting urgent calls in Washington for legislation to rein in the digital asset industry. But after two top executives tied to FTX pleaded guilty to fraud charges on Wednesday, Gary Gensler, the chair of the Securities and Exchange Commission, is pushing back on calls for new laws, arguing that existing S.E.C.…

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