Tag: FTX

FTX Hurtles Toward Bankruptcy With $8 Billion Hole, US Probe

The crisis engulfing Sam Bankman-Fried’s FTX.com is rapidly worsening, with the onetime crypto wunderkind warning of bankruptcy if his firm can’t secure funds to cover a shortfall of as much as $8 billion. Bankman-Fried informed investors of the gap on Wednesday, shortly before rival exchange Binance abruptly scrapped a takeover offer. He said FTX.com needed $4 billion to remain solvent…

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SEC, DOJ Investigating Crypto Platform FTX – WSJ

The Securities and Exchange Commission and Justice Department are investigating cryptocurrency platform FTX following its sudden implosion this week, a person familiar with the matter said. Staff at the two law-enforcement agencies were in close contact Wednesday, the person added. The Justice Department prosecutes criminal violations such as fraud, while the SEC enforces civil investor-protection laws. Source: SEC, DOJ Investigating…

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The Drama’s Back in Crypto, and Nobody’s Happy About It – Bloomberg

The incident also demonstrates the importance of enduring and trusted institutions to markets. Any asset class needs a few clear rules and some kind of referee who actually enforces them, or eventually people will stay away. Cryptography was supposed to inject the necessary security to each transaction, and obviate the need for trusted institutions — but as the asset class matures…

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Binance’s Zhao vanquishes crypto rival Bankman-Fried with FTX deal – The Washington Post

The billionaires who run the two largest crypto trading platforms have set themselves apart from one another at every turn, often acidly. That rivalry reached a surprise conclusion on Tuesday. Not long after Zhao posted a tweet criticizing FTX’s crypto tokens and lobbying efforts, Bankman-Fried unexpectedly announced that Binance probably would acquire FTX. “I’m sorry I didn’t do better,” Bankman-Fried…

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Binance to Buy FTX in Megadeal of Crypto Exchanges – The New York Times

The cryptocurrency world was rocked on Tuesday as one of the largest exchanges for digital currencies, seemingly on the verge of collapse, was bailed out by a major rival in a deal that underlined the perils of the industry’s volatility. Binance, the world’s largest cryptocurrency exchange, said it had reached an agreement to buy its competitor FTX, which struggled to…

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FTX, CEO Sam Bankman-Fried investigated by Texas securities regulator – The Washington Post

Texas’s securities regulator is investigating crypto trading platform FTX and its billionaire founder, Sam Bankman-Fried, for selling an investment product that potentially violated state law. The probe, announced in a Friday filing by Texas State Securities Board enforcement director Joe Rotunda, centers on whether FTX has been illegally offering Texans accounts that pay interest on crypto deposits. Rotunda argues that…

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The 30-Year-Old Spending $1 Billion to Save Crypto – WSJ

Crypto is ailing. Sam Bankman-Fried is betting a billion dollars he can fix it. The chief executive of cryptocurrency exchange FTX Trading Ltd. has appointed himself the industry’s savior—and crypto investors are closely watching his moves after months of market carnage. This year, he bailed out a troubled digital-currency lender and tried to stabilize another. He acquired crypto exchanges in…

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Crypto firm FTX receives cease and desist from FDIC about insurance

The FDIC issued letters to five crypto companies, including FTX US. Unlike deposits held at U.S. banks, cryptocurrencies stored with brokerages are not protected by the government. “Based upon evidence collected by the FDIC, each of these companies made false representations —including on their websites and social media accounts — stating or suggesting that certain crypto-related products are FDIC-insured or…

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