Already a well-known name in cryptocurrency, Sam Bankman-Fried made global headlines in November 2022 when his crypto exchange spectacularly imploded. 

FTX, the second largest crypto trading platform, and Alameda Research, a DeFi investment business also started by Sam Bankman-Friedman, declared bankruptcy amid reports about the way customer’s funds were being handled. 

Last month, the criminal trial of Bankman-Fried, for charges related to the exchange collapse, began in New York, bringing SBF right back into the spotlight. 

Now seems like a good time to remember the background of the one-time crypto wunderkind. 

## Sam Bankman Fried origin story 

Born in March 1992, SBF was seen as a digital asset prodigy, launching Alameda Research in 2017, aged just 25, and the FTX exchange two years later. 

He was born at Stamford University, where his parents, Joseph Bankman and Barbara Fried, were professors. His own education took place at California’s Crystal Springs Uplands School and Massachusetts Institute of Technology, which he graduated from with a degree in physics and a minor in maths in 2014. 

Before graduating, Sam Bankman Fried spent a summer interning at Jane Street Capital, where he traded ETFs. After leaving MIT, he returned to the firm, but three years later, in September 2017, SBF was on the move again, this time to the Centre for Effective Altruism (CEA) in California. 

In the same year, he and Tara MacAulay, also of CEA, launched Alameda Research, a quantitative trading firm. It made quite a stir with its arbitrage trading, which took advantage of the higher value of BTC in Japan than in the US, reportedly completing trades worth up to $25 million every day. 

On the back of his success, Sam Bankman Fried moved to Hong Kong in 2018. 

In mid-2019, the FTX exchange was opened, and it rapidly grew to become second only to [Binance](https://www.binance.com/en) as a crypto trading platform. 

## It all goes wrong 

In November 2022, Alameda Research and FTX filed for Chapter 11 bankruptcy. 

This came at a time when Sam Bankman Fried was still revered by many in DeFi, and he was, reportedly, the 60th richest person in the world, with a peak personal fortune of $26 billion. 

Based in the Bahamas, SBF was seen to use his wealth to support political campaigns in the US. 

After the [collapse of FTX](/news/article/ftx-bankrupt-who-to-blame), amid allegations of poor governance and mishandling of customer funds, Sam Bankman Fried was arrested in the Bahamas and [extradited to the US](/news/article/sbf-agrees-to-return-to-us-for-fraud-charges). 

In December 2022, eight criminal [charges were filed at the Southern District of New York Court](https://www.justice.gov/usao-sdny/pr/united-states-attorney-announces-charges-against-ftx-founder-samuel-bankman-fried), including allegations of wire fraud, securities fraud, money laundering, commodities fraud, and campaign finance law violations. 

Four further charges follow in early 2023. 

SBF was bailed to his parent’s home, but later remanded in custody due to allegations of attempts to tamper with witnesses. 

His trial finally got underway last month. 

## Views on regulation 

The collapse of FTX, one of the biggest names in crypto, raised serious questions around the need for regulating the industry, and led many jurisdictions to ramp up regulatory efforts. 

During the investigation, allegations around the management of both FTX and Alameda were made, including concerns about a lack of corporate governance, understanding of finances, and observation of the rules. 

SBF had spoken publicly about his views on crypto regulation, openly stating he has chosen to relocate FTX to the Bahamas due to what he termed a ‘friendly’ regulatory environment. 

During a conversation on Twitter (now X) in the same month FTX crashed, SBF described the appearance that his firms welcomed regulation and promoted the need for regulators in crypto as ‘just PR’ and not sincere. 

He claimed rules ‘don’t protect customers’ and make ‘everything worse’. He later attempted to clarify these statements, claiming he was referring to greenwashing, ESG (environment, social, and governance), and CSR (corporate social responsibility) being used instead of effective altruism. 

## “Complete failure of corporate controls” 

Among the most damning statements and allegations made in the wake of the collapse of Alameda Research and FTX were those from John J. Ray III. 

Ray, the man who oversaw the five-year bid to recover money for Enron creditors, took over as FTX CEO following the resignation of Sam Bankman Fried on 11 November, 2022. The firm filed for bankruptcy the same day. 

Later in the month, Ray, in a sworn declaration to the bankruptcy court, gave his assessment of Alameda and FTX. He said that 'never in my career' had he witnessed 'such a complete failure of corporate controls' or a 'complete absence of trustworthy financial information’. 

SBF had been due to testify to the House Financial Services Committee in December 2022. He was expected to claim FTX remained solvent, but he’d been ‘pressured' into declaring bankruptcy. He was also due to allege that those who had taken over running the firm were following the Enron precedent to earn high fees. 

Following his arrest, SBF did not appear before Congress. 

The Story of Sam Bankman-Fried 

## Alameda Research Explained 

During the trial of FTX founder Sam Bankman-Fried, the role of company Alameda Research in the dramatic collapse of the cryptocurrency exchange was regularly referred to. In the wake of the FTX debacle, many reports pointed to the contribution of Alameda to the platform's spectacular fall from grace. But what is Alameda Research? 

## Alameda Research trading firm 

Alameda Research was a DeFi (decentralised finance) investment firm established by SBF in October 2017. Headquartered in Hong Kong, the private equity firm, described by some as a quantitative cryptocurrency trading firm, made hundreds of investments. 

Described as a crypto hedge fund, Alameda made profits in crypto arbitrage by trading Bitcoin between Japan and the US. In 2019, it is reported, some of this income was used to get the FTX crypto exchange off the ground. 

As the digital asset industry suffered the crypto winter of 2022, Alameda was still investing heavily in DeFi projects, reportedly extending credit in excess of $800 million to firms like Voyager and [BlockFi](https://app.blockfi.com/signin?iss=https%3A%2F%2Fauth.blockfi.com%2F). 

Alameda collapsed after a balance sheet was leaked that claimed the business relied heavily on FTT, the token issued by FTX. 

The fall of Almeda sparked the [bankruptcy of BlockFi](/news/article/blockfi-bankrupt-court-documents), the crypto lender, amid claims it was owed $671 million by Alameda Research. BlockFi was also exposed to more than $350 million in funds frozen on the FTX exchange. 

While FTX and Alameda appeared to be distinct entities, it was reported in December 2022 that Alameda had handed over some $1 billion to assist the exchange after a company incident on the trading platform. 

## Trading activity 

Alameda was engaged in OTC (over-the-counter) cryptocurrency trading and also offered ‘full-service’ crypto trading on every exchange and market. 

It was reported that in 2022, head of its collapse, Alameda was managing more than $1 billion in digital assets and trading up to $10 billion every day in coins, tokens, and derivatives. 

It was believed to be holding some 40 cryptocurrencies, including major names like Solana, Bitcoin, Ethereum, Meta, DODO, and Swipe. But it was its exposure to FTT, the token of FTX, that proved critical. 

## End of an empire 

Media investigations into the relationship between the two companies, by [CoinDesk](https://www.coindesk.com/), among others, revealed that 40% of Alameda’s assets were FTT. 

These reports of Alameda’s reliance on FTT spooked investors, who fled the FTX exchange and dumped FTT. Unable to keep up with withdrawal requests, [FTX went into freefall](/news/article/ftx-bankrupt-who-to-blame). 

There had been hopes that Binance, the largest crypto exchange, would step in to provide liquidity for its nearest competitor and complete a buyout. But Binance stepped away from the idea. 

The business tweeted in November 2022 that it was abandoning the takeover plans following corporate due diligence and reports of customer funds being ‘mishandled’. 

With customers flooding out and the potential buyout off, both FTX and Alameda filed for Chapter 11 bankruptcy and SBF stepped down. Initial court reports put the liabilities of Alameda and FTX at between $10 and $50 billion. 

## Fall from grace 

Alameda Research had become established as a significant DeFi investor. In just five years, it made more than 220 investments, according to reports. 

Many of these took the form of capital injections into DeFi solution firms. For example, Fordefi, the FinTech and software company, announced in November 2022 that Alameda was among the investors to contribute to the $18 million it had raised to create an institutional DeFi wallet. 

With Alameda being so deep in the DeFi industry, its collapse caused problems for many projects. 

Maps.me and Oxygen, both recipients of tens of millions of dollars from the firm, ended up with almost all of their token supply frozen on the collapsed FTX exchange. 

FTX didn’t hold equity in either firm, but did hold a substantial amount of MAPS and Oxy tokens and was custodian for more than 95% of the total supply. 

## Day in court 

During SBF’s criminal trial, resulting from the collapse of FTX, it was repeatedly alleged that FTX customer funds were used by Alameda. 

Accounting expert Professor Peter Eaton, giving evidence on the apparent disappearance of $9 billion of customer funds, was clear in his assessment. Eaton conducted a painstaking analysis of the FTX and Alameda books and found substantial deficits. 

Alameda was supposed to be holding around $11.3 billion in FTX customer funds, but little more than $2 billion of that was being held in company bank accounts. Eaton testified that almost 70% of the loans Alameda was making were funded with FTX customer funds. 

Alameda research logo on image of research laptop

Alameda Research: Explained

The Bahamas, a tropical paradise known for its stunning beaches, became the backdrop of a gripping financial saga in which Sam Bankman-Fried (SBF) and [FTX](https://ftx.com/), the cryptocurrency [exchange](/news/article/coinswitch-exchange) he founded, were involved. 

From luxury property acquisitions to a dramatic collapse, culminating in his arrest, the story of SBF Bahamas unveils a tumultuous journey in the world of cryptocurrency. 

This article explores the SBF Bahamas adventure, including the property purchases, [the collapse](/news/article/ftx-exchange-under-investigation) of the exchange, and the subsequent arrest of its founder on criminal charges. 

## Who is SBF? 

Bankman-Fried was born in 1992 and grew up in California. He studied physics and mathematics at MIT (the Massachusetts Institute of Technology). After graduating, he held a position as a trader at Jane Street Capital, a company specializing in quantitative trading. 

Bankman-Fried established [FTX](/news/article/ftx-exchange-under-investigation) in 2017, and it quickly became one of the largest exchanges in the world. FTX offered a variety of features that appealed to traders, including high liquidity, low fees, and margin trading. 

Bankman-Fried's success with FTX made him a wealthy man. He was ranked as the youngest self-made billionaire in the world by Forbes magazine in 2021. He gained prominence as a major donor to the US Democratic Party and was renowned for his dedication to effective altruism, a philanthropic movement that advocates for the rational and efficient distribution of wealth to charitable causes. 

However, SBF's success came with a price. He was accused of using his position at FTX to manipulate the cryptocurrency market. He was also accused of using customer funds to prop up [Alameda Research](/news/article/ryan-salame-exposed-ftx-truth), a cryptocurrency trading firm he founded. 

## FTX's Bahamas property purchases 

Under the leadership of Sam Bankman-Fried, FTX embarked on a lavish real estate buying spree in the Bahamas. Property records revealed that the company, together with its senior executives and even SBF's parents, acquired numerous high-value properties totaling nearly $121 million. These acquisitions primarily consisted of luxurious beachfront homes and vacation properties, including seven opulent condominiums in the upscale resort community of Albany. 

The SBF Bahamas property purchases came to light amidst a series of troubling events. FTX, previously counted among the largest cryptocurrency exchanges globally, faced mounting financial woes, leading to a rush of customer withdrawals and subsequent bankruptcy filings. 

The collapse[ left countless creditors with significant losses](/news/article/ftx-creditors-include-google-apple-netflix), and the finger of blame pointed at SBF's alleged misuse of customer funds to prop up his trading business, Alameda Research. 

## SBF Bahamas arrest 

The founder of FTX was[ arrested in the Bahamas](/news/article/former-ftx-ceo-sbf-arrested) in December 2022 following a formal notification from the US. The allegations originated from the US Securities and Exchange Commission (SEC) investigation into FTX's trading activities. 

He was detained at his apartment complex in the Albany resort, where luxurious properties were at the center of FTX's Bahamas buying spree. 

Bankman-Fried was [brought to the US](/news/article/sbf-agrees-to-return-to-us-for-fraud-charges) through extradition. Afterward, the US District Court in Manhattan indicted him on eight counts, including money laundering and securities fraud. 

The SBF Bahamas adventure began when he moved there in 2021 after relocating the headquarters of FTX from Hong Kong. The Bahamas has a reputation as a crypto-friendly jurisdiction, and FTX was one of the first major cryptocurrency exchanges to establish a presence there. 

The arrest marked one of the most stunning falls from grace in recent corporate history as SBF's empire crumbled. The arrest shocked many, as Bankman-Fried was seen as one of the most successful and influential figures in the cryptocurrency industry. 

## What led to FTX's failure? 

On 11 November, 2022, FTX initiated [Chapter 11 bankruptcy proceedings](/news/article/ftx-bankrupt-who-to-blame) triggered by a significant increase in customer withdrawals at the beginning of that month. The then-CEO, Sam Bankman-Fried, openly acknowledged that the company lacked adequate reserve assets to fulfill the overwhelming customer demand. 

## What lies ahead for Bankman-Fried? 

SBF's future entails a trial scheduled for 2 October, 2023. After a court hearing on 22 December, 2022, a federal judge ruled in favor of his release from custody upon agreeing to a record-breaking $250 million bond. 

He will reside in Palo Alto, California, with his parents, adhering to restrictions within the Northern California area and wearing an electronic monitoring bracelet. Bankman-Fried appeared in a federal court in New York in January 2023 and entered a plea of not guilty to all allegations. 

## Conclusion 

The rise and [fall of SBF](/news/article/ftx-boss-denied-bail-in-bahamas) tell a cautionary tale of unchecked ambition and financial turmoil in the world of cryptocurrency. This saga underscores the importance of robust regulations and responsible management in safeguarding investors and upholding the credibility of the crypto industry. 

Sam Bankman Fried (SBF) Standing in the bahamas

The SBF Bahamas adventure: The rise and fall of a crypto mogul 

Tom Brady, a beloved US National Football League (NFL) figure, has found himself entangled in a significant financial predicament. Recently, documents related to the [FTX bankruptcy case ](/news/article/ftx-bankrupt-who-to-blame)revealed that Brady had invested substantial funds in the now-collapsed crypto exchange. Unfortunately, these funds have now become nearly worthless following the bankruptcy filing. 

Various media outlets, including The Insider and Bloomberg, have reported that Tom Brady held approximately 1.1 million FTX shares. Additionally, reports indicate that Gisele Bündchen, Brady's former wife and a renowned supermodel, also had a significant investment, owning approximately 680,000 shares in the exchange. 

This article explores the journey of Tom Brady, once an ambassador for FTX, and how he lost a considerable number of shares in the exchange. We will also assess the potential for the recovery of these funds. 

## Tom Brady FTX affiliations 

Since 2021, former NFL player Brady has served as the ambassador for the now-insolvent crypto exchange FTX. His ex-wife, Gisele Bündchen, has also been associated with the company. Together, they have participated in various [advertising campaigns promoting FTX services,](https://web.archive.org/web/20230111152240/https:/www.youtube.com/watch?v=_aCGMyrFn-8&t=55s) which have faced significant criticism from the crypto community. 

![FTX Tweet screenshot from 2021. Shows Tom Brady and his wife and announces they are to be FTX ambassadors. ](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Screenshot_2023_07_17_at_09_34_48_5f7d387508.png)

Investors hold the couple responsible for intentionally encouraging people to invest in the crypto firm, leading to a lawsuit, as reported by [Business Insider](https://markets.businessinsider.com/news/currencies/tom-brady-shaquille-o-neal-golden-state-warriors-ftx-lawsuit-2023-5). The lawsuit was filed in November 2022 and included several other prominent figures from the sports and entertainment industries. 

On May 11, 2023, an amended complaint was filed in the Florida District Court. Reports suggest that Dan Friedberg, the former chief compliance officer of FTX exchange, is cooperating with the lawyers and providing valuable information regarding the FTX promotional campaigns. Friedberg's involvement indicates that a substantial portion of the campaigning occurred in Florida. 

Initially, some defendants claimed that the promotional activities were unrelated to Florida. However, with Friedberg's statement, the class action lawyers now have evidence to challenge the defendants' claims. Currently, the legal proceedings for the case are underway in the Florida District Court. 

## Can Tom Brady FTX shares be recovered? 

Brady and his former wife, Bündchen, possessed a combined total of approximately two million devalued shares. Before the [collapse of FTX](/news/article/ftx-collapse-blockfi-suspend-withdrawals), these shares held a considerable value in the millions. Forbes estimated Brady's claims to be [worth around $45 million](https://www.forbes.com/sites/chasewithorn/2022/11/10/exclusive-these-investors-stand-to-lose-the-most-from-ftxs-implosion/?sh=39ec68862670) and Bündchen's shares to be approximately $25 million. However, as [Sam Bankman-Fried](/news/article/former-ftx-ceo-sbf-arrested)'s firm faced mounting losses, the value of these shares plummeted. 

Currently, the chances of stakeholders fully recovering their funds are improbable. The downfall of FTX resulted in a loss of approximately $32 billion, with only [$7.3 billion](https://www.reuters.com/technology/bankrupt-crypto-exchange-ftx-has-recovered-73-bln-assets-attorney-2023-04-12/) having been recovered thus far. Given this significant disparity, it is unrealistic to expect all stakeholders to be able to [retrieve their assets](/news/article/ftx-news-assets-recovered). 

## Other celebrities who lost funds in the FTX collapse 

Brady and Bündchen are not the only high-profile individuals involved with [Sam Bankman-Fried's bankrupt exchange](/news/article/sam-bankman-fried-lost-billions). A roster of celebrities from the sports and entertainment worlds became investors in the company prior to its insolvency. Notably, Robert Kraft, the owner of the New England Patriots, held approximately 630,000 common shares in the firm. 

The sports industry features other notable names, including Golden State Warrior's basketball player Stephen Curry, former NBA player Shaquille O'Neal, baseball player David Ortiz, and tennis player Naomi Osaka. 

In addition to sports personalities, the list of celebrities affected by FTX's collapse includes renowned comedian Larry David, entrepreneur Kevin O'Leary, and numerous others. 

## Final words 

Tom Brady, a legendary NFL player with seven Super Bowl championships under his belt, made headlines when he joined the FTX crypto exchange as an ambassador in 2021. Alongside his then-wife, Gisele Bündchen, Brady actively promoted the exchange's services. 

Not only did he lend his influence, but he also made significant investments in the form of 1.1 million common shares, valued at a staggering $45 million. 

Unfortunately, as the exchange encountered insolvency, the value of these shares plummeted, putting Brady's substantial investment at risk of significant loss. Brady is now facing a lawsuit about his promotion of FTX services, further complicating his involvement with the exchange. 

red image of Tom Brady from the NFL looking confused with FTX app on a phone

Tom Brady FTX ambassador may lose 1.1m shares

## FTT price prediction: Is there hope for recovery? 

FTT, the native token of FTX, falling off the pedestal in November 2022, from a price of $22 to under $5 within 24 hours and losing over $2 billion in the same period, was as dramatic as they come. 

From the token's all-time-high when the FTT price was $84.18 on September 9, 2021, to trading at an average of $1.20, according to the [CoinMarketCap ](https://coinmarketcap.com/currencies/ftx-token/)at the time of going to press, some experts predict a bullish trend while others suggest it may not reach the value it had before the[ fall of FTX](/news/article/ftx-exchange-under-investigation). 

This article explores the possible movement of FTT price from 2023 to 2030. 

## What is FTT? 

FTT is the native token of the derivative cryptocurrency exchange FTX. FTT is an ERC 20 token that runs on the Ethereum blockchain and needs to be stored in a compatible digital wallet. Like other digital assets, FTT has a value that can be traded besides being used to facilitate financial transactions. The FTX exchange supports FTT's value by regularly repurchasing and burning its tokens.  

FTT offers users access to the features and services provided by the FTX trading platform. Encouraging users to hold and use the token creates utility in the entire FTX ecosystem. 

FTX Token amassed strength and confidence in 2021 when it hit its all-time high, enabling investors to earn between 150 and 100% profits. Nonetheless, rumors about a "hole" in the exchange's balance books negatively impacted its fortunes, causing the coin to lose more than 80% of its value.     

## FTT unique features 

Users of the FTT token enjoy numerous unique benefits, including discounts on trading fees, lower fees when trading crypto futures, and getting tighter spreads besides using the token as collateral for futures trading. The difference can be as high as 60% for active users on the FTX platform. Other unique benefits include the following:  

## Clawback prevention 

FTT provides insurance protection to traders to protect them from Clawback. The insurance component offers a net gain during volatile market periods to cushion traders so they can continue without triggering margin calls. This scheme is especially beneficial when using leveraged tokens, which traders can use to take positions that greatly multiply profit and loss potentials.    

## Staking 

Holders of the FTT token can participate in [staking](/news/article/what-is-staking-crypto), a process where holders can lock their tokens in the exchange to help stabilize it and validate transactions to earn a share of the profits. Stakers enjoy other benefits, including free ERC20 withdrawals, IEO tickets, airdrop rewards, additional rebates, and a chance to win free NFTs by spinning the NFT swag wheel. 

Other specific use cases of FTT tokens include: 

- White label solutions: FTX offers a white label variant of their futures market and OTC site designed to attract large investors to purchase FTT. 

- FTT as collateral: The token is used for users interested in futures trading.  

- FTT token value: Since the token's value is directly related to any upgrades and expansion on the platform, token holders can expect the value of their holdings to rise as its price increases.   

## FTT price prediction 

The FTT token has consistently shown bearish signs. There are mixed feelings about a slight recovery expected over the coming weeks, with investors waiting on the fringes to take advantage of the dip to buy FTT tokens. 

As you may already know, the cryptocurrency market is highly volatile, making a precise FTT price prediction akin to looking for a needle in a haystack. Consequently, no one should take this price prediction as financial advice but as a compass direction to help you make informed investment decisions.   

## FTX token prediction 2023 

As we start experiencing some bullish signs following a slight recovery from the crypto winter, it is expected that FTT will achieve a high of $2.17 as a stepping stone toward recovery. The minimum expected price should be around $1.45, with the average price being $1.81.  

## FTX token prediction 2024 

Should the recovery process go smoothly, and FTT reaches the anticipated new highs this year, the token could hit $3.37 in 2024 and linger around $3.01. However, if the bears return, the token could achieve a minimum price of $2.65.  

## FTT price prediction 2025 

We expect FTT to experience impressive growth in 2025, even as cryptocurrencies continue to make inroads into numerous business sectors. The result would be a price of up to $4.58, some $4.22 on the lower side, and a minimum fee of $3.86.  

## FTT price prediction 2026–2030 

Should capital growth in the cryptocurrency market persist, FTT could close 2026 at around $5.78, averaging $5.42 and lows of $5.06. As the result of anticipated growth during the next five years, we could experience another significant bull market towards 2029 and see FTT achieving a maximum price of $9.40, lows of $8.68, and an average price of $9.04. For 2030, the token could rally toward $10.60 and bottom out at $9.88. 

## Is FTT a good investment? 

The [bank run on the FTX exchange](/news/article/ftx-bankrupt-who-to-blame) and its enormous debts has placed a blot on what was designed to be a good crypto investment tool. This means that investing in FTT is greatly speculative, at least for now. 

The short-term FTT price predictions could be more optimistic. Most experts believe investors will get a low ROI until FTX deals with the reputational damage caused by the bank run. 

FTT Price: Hope for Recovery?

Ben Armstrong, a crypto Youtuber, is facing legal scrutiny following allegations that he sent threatening messages to the lawyers leading a class action lawsuit against promoters of the [collapsed crypto exchange FTX](/news/article/is-crypto-dead). Armstrong, also known as "[BitBoy Crypto](/news/article/bitboy-crypto)," is among several FTX influencers facing a [$1B class-action lawsuit](https://cointelegraph.com/news/ftx-influencers-face-1-billion-class-action-lawsuit-over-alleged-crypto-fraud-promotion) for alleged [crypto fraud](/news/article/guo-wengui-accused-of-crypto-fraud) promotion.

The suit alleges that the influencers failed to disclose that they were paid to endorse FTX accounts to their substantial online following, which includes the BitBoy Crypto YouTube channel with 1.45 million subscribers.

## BitBoy crypto faces legal scrutiny over alleged threats

According to court documents [filed](https://www.courtlistener.com/docket/67017199/5/garrison-v-paffrath/) on 20 March, the lawyers heading the class action suit claim that Armstrong has been harassing one of the plaintiffs since the lawsuit was filed last week. They accuse him of making "endless phone calls, Tweets, and emails" to the plaintiff and posting "insulting and threatening posts" about him on social media.

Furthermore, in the court filing, the lawyers accused Armstrong of making 21 calls within 45 minutes from an unknown number to the lawyers' office and leaving a voicemail containing a warning that "First Amendment protesters" would surround the lawyer's house "24/7 day and night".

In another voicemail, he claimed that the "home addresses" of the "lawyers" were being circulated on Reddit.

The filing alleges that he also sent profanity-laced emails to Adam Moskowitz - one of the attorneys in the FTX class action suit - and a message warning him that he was "choosing war with an anonymous community while you yourself are not".

It also claims that BitBoy posted a YouTube [video](https://www.youtube.com/watch?v=dp1F5lJUBf4) on 16 March directed at lawyers and individuals who bought the lawsuit against him and warned them that he was "coming at them with full force".

In another alleged message to Moskowitz, Armstrong reportedly warned him that "these people are dangerous" and that they could result in "you and your family shot".

The filing also included an email that Armstrong allegedly sent to Moskowitz in which he referred to him as a "b*tch" and an "unbelievably dumb mother f*cker”.

![Picture 1.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Picture_1_80ec6a5484.png)
  
## BitBoy Crypto's response to accusations

In a statement to Cointelegraph, BitBoy denied making calls, tweeting, or emailing the FTX class-action lawyers. Furthermore, in his video, he denied promoting [FTX](/news/article/ftx-funds-political-donations-to-be-recovered) and threatened Moskowitz with a countersuit.


red image of bitboy crypto youtuber holding his tweet about threatening lawyers

BitBoy Crypto Accused of Threatening Lawyers 

Benjamin Roth, the Chief Investment Officer of [Auros](https://www.auros.global/), has revealed that the company has effectively resolved its liquidity problems arising from the bankruptcy of the crypto exchange FTX.

Following a significant debt restructuring, Auros was recently released from court-supervised provisional liquidation and obtained a fresh investment of $17 million.

Vivienne Court Trading, a traditional high-frequency trading firm, and Bit Digital (BTBT), a public bitcoin mining company, led this investment. Meanwhile, the [crypto trading](/news/article/how-does-crypto-trading-work) firm had to engage in months of behind-the-scenes efforts to keep its business afloat following the collapse of FTX, which caused significant losses for several trading firms in the crypto industry.

## Auros response to the liquidity crisis caused by FTX bankruptcy

The failure of [Sam Bankman-Fried's](/news/article/sam-bankman-fried-bail-co-signers-revealed) exchange to repay its customers caused concerns about a broader insolvency crisis in the cryptocurrency market.

As a result, lenders began recalling their outstanding loans to minimise possible losses. Auros, whose funds were mainly tied up in FTX, suddenly faced a liquidity crisis and could not repay its creditors. Rather than attempting to repay lenders, it filed for provisional liquidation with the British Virgin Islands (BVI) court to engage with its creditors.

With the BVI's assistance, the firm could restructure its outstanding debts, including converting open-term loans into termed loans with a maturity date. Auros also addressed its $18 million in [DeFi](/news/article/what-is-a-defi-token) loans by repaying 55% of its debt on the blockchain-based credit platform Maple and spreading the remainder across three-month and nine-month loans.

## Auros raises strategic funds to continue its operations

According to Roth, the company had plans to raise capital even before [FTX's collapse](/news/article/ftx-bankrupt-who-to-blame). However, the court's supervision made it more challenging to raise funds. In a statement, Marcel Klooss, co-founder of Vivienne Court, stated that the two companies have complementary skills and distinct characteristics that will create continuous synergies. The crypto firm, expanding its derivatives solutions business to offer yield and protection services to clients, will have [BitDigital](https://bit-digital.com/) as its second-largest investor and strategic partner.

The funding round also includes participation from Trovio, Primal Capital, Epoch Capital, and a group of senior and former traders from proprietary trading and market-making firm Optiver.

Marcel Klooss and Hughes Ching, co-founders of Vivienne Court and Bit Digital, respectively, will become members of the board of directors.


blue image of circuitboard with auros logo overlayed

Auros Resolves Liquidity With $17M Funding 

One of the most popular US banks for cryptocurrency transactions, Silvergate Capital, is in danger of collapse. The firm is examining its position to decide whether it can continue its operations.

On 1 March, the bank reported to the US financial watchdog, the Securities and Exchange Commission (SEC), that it would not file its annual activities report on the deadline. It also reported to the SEC that it is deliberating its options to survive the crisis.

## Silvergate facing bankruptcy due to FTX contagion

Silvergate Capital is a bank that deals in crypto lending. It has become the first conventional finance house affected by the FTX contagion. Reportedly, it lent almost all its funds to the exchanges. Due to this, when the [FTX crypto exchange crashed](/news/article/curve-finance-leverage-ftx-crash), the California-based finance company suffered severe losses. 

Meanwhile, the [collapse of Sam Bankman-Fried's](/news/article/sam-bankman-fried) firm has affected several crypto-lending firms since November 2022. Some of the most prominent names are [BlockFi](/news/article/blockfi-bankrupt-court-documents), [Genesis](/news/article/genesis-bankruptcy-crypto-meltdown-continues) Global, and [Gemini Exchange](/news/article/gemini-crypto-exchange-falls-prey). 

In addition, many prominent lending partners are pulling out after the news of the bank's potential bankruptcy. The firms that have withdrawn include big names like [Coinbase Global](https://www.coinbase.com/price/global-cryptocurrency), [Galaxy Digital Holdings](https://www.galaxy.com/), [Crypto.com](https://crypto.com/), and [Paxos Trust](https://paxos.com/). The company will also have to deal with this loss of business.

## Silvergate shares plunged 

After the bank reported to the SEC about its financial situation, its share value plummeted. On Thursday, the firm's share value dropped by more than 55%. The overall stock price in the year has decreased by 67%.

Furthermore, [Silvergate has experienced losses](/news/article/silvergate-bank-loses-assets) of more than $1 billion in the past three months. Although many other firms also saw significant losses, Silvergate’s collapse could leave a lasting effect on the market. The main reason is that the firm is a traditional bank, which could likely shake investors' trust in the crypto market.


Silvergate Capital on Verge of Collapse

[Becca Balint](https://vtdigger.org/2023/02/28/becca-balints-1-million-crypto-benefactor-pleads-guilty-to-campaign-finance-fraud/), a member of the US House of Representatives from the state of Vermont, has been thrown into the spotlight again after Nishad Singh, an ex-executive of insolvent cryptocurrency exchange FTX who contributed $1 million in advertising money to her congressional push, pleaded guilty to campaign finance fraud on 28 February.

Singh said he is sorry for his role in the bankrupt crypto firm. He reiterated that he only knew by mid-2022 that Alameda Research, the hedge fund run by founder [Sam Bankman-Fried](/news/article/sam-bankman-fried-bail-co-signers-revealed) (SBF), was borrowing customer funds at [FTX](/news/article/ftx-funds-political-donations-to-be-recovered) without informing depositors.

The association of the politician with FTX has added more fuel to the fire as allies of SBF, which included Singh, contributed a minimum of $26,000 directly to support her campaign. Aside from that, the Democratic Party in Vermont was also a beneficiary of FTX contributions. 

SBF's inner circle continues to crumble. Singh is the third member of the once-thriving crypto firm to collaborate with US prosecutors with the hope of working out a deal. 
  
The latest link to Bankman-Fried's ally comes a few days after a superseding [indictment](https://vtdigger.org/2023/02/23/becca-balint-cooperating-with-federal-prosecutors-as-new-allegations-against-sam-bankman-fried-emerge/) filed on 23 February laid out an alleged scheme by the founder and former CEO to illegally move investor money to political campaigns to help improve his standing with representatives in Washington, DC.

Prosecutors believe his consistent donations were a way of pushing decision-makers to consider his preferred regulatory agenda for the entire decentralized finance economy.  

## Becca Balint is cooperating with authorities 

According to her campaign manager, Natalie Silver, Vermont's leader in the House of Representatives is fully cooperating with federal authorities in the investigation into SBF's scheme to pour a minimum of $1 million into a super PAC (political action committee) to support a candidate who favoured LGBTQ issues.   

After serving as a member of the Vermont Senate, Balint made history by becoming the first person from the LGBTQ+ community to be elected to Congress.


red image of becca balint and sam bankman-fried in front of sign saying guilty

Becca Balint Contributor Admits Fraud 

The details of Sam Bankman-Frieds bail have been revealed before the court. Surprisingly, the former CEO of the fallen crypto exchange, FTX, had been bailed out by two high profiles in academia. The co-signers happen to be Larry Kramer and Andreas Paepcke.

Interestingly, both guarantors have an association with the Stanford Law School. Kramer served as the Dean of the law school, whereas Paepcke served as a research scientist. 

Curiously, Sam’s parents also work for the same school. 

## Stanford academics contributed $700,000 for SBF bail

The surety documents of SBF also revealed that the notorious crypto figure was bailed out at $700,000. Kramer contributed around $500,000, and Paepcke put up more than $200,000 for the bail. It helped in the release of SBF, and he is currently residing with his parents in California.

However, the trial for fraud in the [FTX exchange case](/news/article/ftx-exchange-under-investigation) is not over yet, and the case proceedings are still ongoing in the federal court of New York.

The founder of the fallen exchange was [released on a $250 million bond](https://www.ft.com/content/6993c3fa-6147-4cd3-9214-886d4da20d2f). According to the government prosecutors, it was the largest ever amount. Initially, the bond was covered through SBF’s parent’s home, Palo Alto. 

## Judge Kaplan ordered to reveal of bail documents 

Lewis Kaplan, the federal court judge, ordered to reveal the details of the surety documents. It included the revelation of the co-signers' names and the amount they contributed. The judge took action after the request from the Inner City Press back on 3 January.

Previously, the identities of the bail guarantors were concealed at the request of SBF’s lawyer. But now, the unsealing of documents has exposed the names of the co-signers. Larry Kramer and Andreas Paepcke are the figures from Stanford who put up significant amounts. 

SBF’s parents, Joseph Bankman and Barbara Fried, also work for Stanford Law School. It implies that their affiliation with other employees in the school has helped secure Sam Bankman-Fried’s bail, previously [denied by the Bahamas judge](/news/article/ftx-boss-denied-bail-in-bahamas) in December 2022.


image of sam bankman-fried, Andreas Paepcke and larry kramer stanford in front of image of millions of dollars falling

Sam Bankman-Fried’s Bail Co-signers Revealed 

Fiat-to-crypto on-ramp service provider Juno bank has resumed offering the core services it paused in early January following “uncertainty” with its cryptocurrency custodian partner Wyre. The crypto firm has acquired the services of a new crypto custodian, Zero hash.

Juno halted its crypto services in early January as a form of “preemptive action” in the interest of their customers as its former custodian Wyre became another victim of the meltdown caused by the [FTX saga](/news/article/ftx-bankrupt-who-to-blame). According to a [statement](https://juno.finance/blog/Introducing-our-new-crypto-partner) by Juno CEO and co-founder Varun Deshpande, the firm promises its clients a more secure experience on the new platform following the 2022 debacle and is committed to building compliance on its on-ramp product. 

## Juno bank has reinstated most of its former services

Taking to [Twitter](https://twitter.com/JunoFinanceHQ/status/1610639365595860992), Juno advised its customers to choose between selling their crypto assets for cash or self-custody as the firm worked to migrate to a new custodian. The decision was necessitated by Wyre's preparation to wind down operations in the aftermath of the FTX debacle. This happened after [news emerged](https://www.axios.com/2023/01/03/wyre-shutdown-crypto-winter) that Wyre was shutting down and laying off employees. Juno bank said they would switch custodians in preparation for potential challenges with Wyre.  

While Juno has reinstated most of its former services, it has yet to reinstate L2 withdrawal and deposits, as well as crypto paycheck services. On the brighter side, though, the crypto firm has introduced additional features such as the support of more than 35 additional cryptocurrencies, including SOL, ADA, SHIB, and DOGE. Also, users can now enjoy a zero-trading-fee incentive and a rewards program per dollar traded when they trade in non-stablecoins.

## The industry will weather the storm

As the crypto sphere struggles to remain afloat amidst a historic shock caused by a severe crypto winter and exacerbated by the [FTX bankruptcy](/news/article/ftx-funds-political-donations-to-be-recovered), there are essential lessons for the industry to learn. Overall, the digital asset industry has undergone a transformational shift beginning in the latter half of 2022, spurring a serious industry cleanup in the wake of numerous high-profile bankruptcies.

In the meantime, the conversation surrounding the regulation of cryptocurrencies around the globe continues as actors demand stringent laws akin to traditional banks and financial institutions.

This latest development by Juno bank is a clear signal that even after being dealt a severe blow by the ongoing FTX contagion, the crypto industry will weather the storm, and things will eventually improve. That’s because the way up usually begins at the point where governance-free conduct leads a sector.


blue image of bank cards and juno bank logo

Crypto Firm Juno Bank Bounces Back

The new management of FTX is taking steps to [recover political donations](https://decrypt.co/120637/ftx-demands-return-political-donations) made by its former executives, including Sam Bankman-Fried, as part of the ongoing bankruptcy proceedings and plans to recover funds to repay the crypto exchange's creditors. 

## FTX funds donations to political parties

Bankman-Fried had been open about his political donations even before the exchange [collapsed](/news/article/is-crypto-dead). He was the second-largest CEO contributor to Joe Biden's 2020 campaign with a donation of $5.2 million. He also admitted to being a significant donor to Democratic and Republican candidates during the November midterm elections. 

The FTX funds donations to political parties are under [investigation](/news/article/ftx-exchange-under-investigation) by US prosecutors, with court documents filed in January indicating a review of donations totalling $93 million between March 2020 and November 2022.

## FTX plans to take back its political donations

FTX is taking action to retrieve millions of dollars from political contributions. John John Jay Ray III, the newly appointed company's CEO, has issued a formal demand for the return of "contributions or other payments" by 28 February.

The new management has outlined a pathway for politicians and political groups to voluntarily return the funds, with unreturned donations then required to be repaid with interest. 

Additionally, the company emphasized that it will still seek to recover funds donated to third parties like charities. The company clarified that recipients of such contributions are not exempt from its demand for return.

According to recent data from Unusual Whales, 196 members of Congress received campaign contributions from FTX's former executives, including [Ryan Salame](/news/article/ryan-salame-exposed-ftx-truth), Sam Bankman-Fried, Nishad Singh, and others.

In addition to recovering political donations, FTX's new team is also taking steps to repay its creditors, including plans to sell $4.6 billion in non-strategic investments, such as subsidiaries LedgerX, FTX Japan, Embed, and FTX Europe. 

A task force has also been formed by the Southern District of New York US Attorney's Office to investigate the exchange's collapse, including recovering missing customer funds and handling prosecutions relating to the FTX crash.


red image of ftx logo and dollars falling

FTX Funds: Political Donations to be Recovered

Hyperverse, amongst other crypto projects, has raised curiosity and concerns in equal measure. And with every passing day, there are more raised eyebrows and questions regarding its legitimacy.

In part, it's a result of the plummeting cryptocurrency value this year. The [FTX debacle](/news/article/ftx-bankrupt-who-to-blame) hasn't helped, either.

The scandal of FTX and its demise has revived conversations around the validity of crypto projects. Exposed to the recent searchlight is the [Hyperverse](https://thehyperverse.net/index.html), and we're about to take a sneak peek.

## So, what is the Hyperverse crypto project?

![hyperverse1.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/hyperverse1_4bd03f9813.png)
  
Picture of The Hyperverse

Visit the Hyperverse.net website and you're greeted with the following words against a backdrop of star systems and futuristic cityscapes.

### Where Reality Ends and Imagination Begins

According to the team, Hyperverse is a virtual metaverse with player voyagers residing on millions of planets and interacting with one another in the commerce of tokenized items.

So the story goes that this is 2078AD, and we've mastered interstellar travel. Kicking off the age of interstellar migration, the first human voyagers on the Proxima Centauri star system created the Hyperverse.

There's even a cool video of a space vehicle, Apollo, docking into what I can only describe as a space city enclosed in a glass bubble just off the rocky rings of a mars-like planet. The video ends with a panoramic view of the glass bubble attached to a spaceship.

And then, the word HYPERVERSE comes into focus.

## So why should we have the Hyperverse?

Catchy lore, cool videos, and a buzzing community are nice and typical in the crypto space, but so is the tendency to be more community than a commodity.

## Features

![hyperverse2.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/hyperverse2_08e6f06d0e.png)
 
Picture of The Hyperverse

The [Hyperverse](https://thehyperverse.net) claims to bring users value through a combination of features from themes in gaming, Metaverse, crypto economy, [DeFi](/news/tag/defi), and governance.

![Screenshot 2023-01-30 at 09.20.02.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Screenshot_2023_01_30_at_09_20_02_3a4a35a64a.png)

![hyperverse3.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/hyperverse3_5c61fdf2d2.png)

Picture of The Hyperverse

## Concerns

The one question that many Hyperverse crypto project critics feel the team doesn't answer clearly is how the Hyperverse claims to make money. The team promises returns of 0.5% per day for 600 days, where investors can look to make as much as 300% returns on their initial investments. They say that these returns are gotten from their savvy investments in crypto currencies and other Web3 projects.

But the thing is that no one can guarantee such returns for that long. Also, the assets they claim to make money from have dropped in value, with many at around 3% to 10% of their original value. As we speak, Bitcoin trades for $16,000, 80% down from its all-time high in October last year.

There are other complaints as well. Investors lament the difficulty, and sometimes inability, to sell their HU cryptocurrencies. All the while, the Hyperverse crypto project keeps changing its name, from Hyperfunds to Hyperverse and then to Hypernation. What is steady across these changes is the increasing skepticism around the hype. 

It seems to be a Ponzi scheme dressed in the latest garb of the times - web 3.0. However, remember to do your own research.


pink image of hyperverse logo on image of futuristic city

A quick look at the Hyperverse crypto project

The lawyers for the bankrupt crypto exchange FTX filed a creditor matrix in the [Bankruptcy Court](https://www.deb.uscourts.gov/) of the US in Delaware District on 25 January. It is a detailed document that reveals all FTX creditors, including giants like Netflix, Amazon, Apple, and Coinbase.

The court document suggests that the fall of the [FTX crypto exchange](https://ftx.com/) has affected firms from various domains. Besides crypto firms, the collapse has troubled several banks, hotels, airlines, media agencies, charity organisations, and others. In addition, a few government entities are among its creditors.

## Big names from the list of FTX creditors

The creditor matrix is a 115-page document that provides names and mailing addresses of creditors in alphabetical order.

It illustrates the extent of damage caused by the fall of FTX.

As per the document, the bankruptcy of crypto exchanges left a deep impact on the tech industry. The SBF firm is indebted to the tech giants like Apple, Amazon, Microsoft, Meta, Twitter, Google, Netflix, LinkedIn, and many others. 

In addition, media outlets, including big players like the New York Times, figure among its creditors.

In the Web3 sphere, the firm owes to companies like Coinbase, Yuga Labs, Galaxy Digital, Bittrex, Circle, Binance, and Chainalysis.

## FTX bankruptcy case

Not long ago, the FTX exchange was one of the largest in the industry. However, in November 2022, the firm experienced a liquidity crunch as its FTT token crashed.

This prompted the firm to file for insolvency, and its founder [SBF was arrested](/news/article/former-ftx-ceo-sbf-arrested) for financial laws violation. 

Earlier, the firm's lawyers mentioned that it owes money to more than a million creditors. The rough estimates suggest that the firm owes more than $100 million to each of its top ten creditors. However, the recent creditor matrix did not provide the estimated amounts of each creditor.


red image of blockchain with FTX, coinbase, apple and netflix logos shown

FTX Creditors Include Google, Apple, Netflix

Genesis Global Capital Inc. has joined the ranks of the FTX contagion victims. The crypto lender has filed for chapter 11 bankruptcy protection in the Manhattan federal court.

It has been struggling since the collapse of FTX in November 2022.

Genesis bankruptcy is a major setback for its parent company, [Digital Currency Group](https://dcg.co/) (DCG). Barry Silbert’s DCG relied on the business of this crypto lender, and now it is likely to face a liquidity crisis. 

According to the insolvency filing, the firm has more than 100,000 creditors. In addition, it has accumulated liabilities of $1 billion-$11 billion. It also includes the liabilities of the clients of the Gemini Earn program.

## Genesis bankruptcy - Official statement

The firm announced the bankruptcy through a [press release](https://www.businesswire.com/news/home/20230119005955/en/) on 19 January. It mentioned that the Chapter 11 filing would only be effective on its crypto lending business. However, its spot trading, derivatives, and brokerage businesses will carry on their operations.

In the official statement, the company announced that it has started "a court-supervised restructuring plan", which will allow it to find "a holistic solution".

The bankrupt lending business claims more than $150 million in liquidity. It plans to use this fund to back up its business operations and to use it for restructuring plans.

## Crypto crisis after the FTX collapse

Since the collapse of the [Sam Bankman-Fried](/news/article/former-ftx-ceo-sbf-arrested) exchange, the industry has been going through a meltdown. FTX contagion spread to several firms, including [BlockFi](/news/article/ftx-collapse-blockfi-suspend-withdrawals), 3AC, [Gemini](/news/article/gemini-crypto-exchange-falls-prey), Salt, and others.
 
Earlier, Genesis paused withdrawals from its customers' accounts. It affected the operations of the lending program of [Gemini and Genesis](/news/article/genesis-gemini-sec-takes-action). These firms are now facing a lawsuit from the Securities and Exchange Commission. Following this situation, it also [laid off 30% of its workforce](https://www.coindesk.com/business/2023/01/05/crypto-lender-genesis-lays-off-30-more-of-its-staff/). 

And now, it has filed for protection from bankruptcy. This could also affect DCG's businesses, as it may cause a further liquidity crisis.


red image of bankrupt newspaper and genesis logo

Genesis Bankruptcy: Crypto Meltdown Continues 

The Ether price in British pounds plummeted in November, with Trading View charts showing the ETH price at less than £1,100 on 11 November and failing to rise to the level again.

Ethereum tops the list of altcoins among traders and investors. It is the most well-known altcoin and, to many investors and enthusiasts, much more than just another cryptocurrency.

Currently, the ETH price is £1,575.97, slightly higher than the opening price of this week, £1,552.52. During an entire week, Ether's price moved between a maximum of £1,063.22 on 5 December to a lowest of £1,000.01 on 7 December.

![ether.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/ether_d1e3f1abb5.png)
  
Source: Tradingview.com

The Ether price pounds value rallied 19.74% from £907 on 22 November to £1,086 on 30 November before falling -7.20%. The resistance level at £1,086 has been keeping up for a month, which is the likely cause of the correction to £1,000.01 on 7 December. On the other hand, traders are happy that the ETH is now trading 15% above its low on 22 November.

The market is already in winter, and the fall of FTX worsened the mood of traders. However, two other events pushed the waves higher and broke traders' confidence. A [tweet by Elon musk asking SBF where did the money go](/news/article/elon-musk-tweets-where-did-money-go) acted as a stone to break the beaker.

Plus, three US Senators wrote to [Silvergate Bank asking for information regarding the bank's involvement with FTX](https://cointelegraph.com/news/us-lawmakers-request-answers-from-silvergate-over-ties-to-ftx-report). Lawmakers are trying to find out legislative or regulatory solutions to prevent a similar occurrence in the future. 

Following "reports suggesting that Silvergate enabled the transfer of FTX client cash to Alameda", the lawmakers asked inquiries. They gave the bank until 19 December to respond.

NBC News, on 5 December, reported that Silvergate is claiming not to be involved in FTX and Alameda Research's apparent misuse of customer funds. However, according to 6 December news, the three Senators, Elizabeth Warren, John Kennedy, and Roger Marshall, sent a letter to Silvergate CEO Alan Lane. It asked the bank to provide details on its connection with FTX regarding the allegations and queries around its name.

It is still unclear what the long-term consequences of FTX's collapse will be, as the latest wave of bankruptcy cases poses a risk of extending the present cryptocurrency bear market. Keeping these things in mind, investors are forced to think that the crypto meltdown will likely go deeper because of such frequent negative events happening in the market.

The FTX collapse has had an influence on the course of the regulatory regime in the United Kingdom. The planned revisions would make it possible for the Financial Conduct Authority (FCA) to keep an eye on the regional operations of the crypto businesses.

In this bearish scenario, investors fear Ether could lose the £1,000 support. It's important to note that making a firm call for the Ether price pounds value is challenging. Some predict that Ether could be in for a crash this year, with its value dropping as low as £750. Crypto market analysts expect ETH to drop as much as 80% from its all-time high of £3,560, leading it to around the said support level.

## Final words

A positive aspect of the network, when considering the Ether price pounds value, is that Ethereum has more than a 90% share of the NFT market.

It is hoped that the first smart contract blockchain will survive this period of instability.


green image of British flag and GBP with ETH logo in centre

Ether Price in Pounds: Unable to Reach £1,100

On 17 January, cryptocurrency exchange [FTX](/news/article/curve-finance-leverage-ftx-crash) revealed in a report to creditors that a significant amount of funds, estimated at $415 million, were stolen in a series of hacks. 

The company stated that despite efforts to recover lost assets, significant shortfalls remain at the FTX US and international exchanges.

FTX told the bankruptcy judge in Delaware last week that it has managed to [recover more than $5B](/news/article/ftx-news-assets-recovered) in various assets, including crypto, cash, and liquid securities. However, the exchange attributes a portion of the remaining shortfall to the hacks, reporting that $323M in crypto was stolen from the international exchange and $90M from the US exchange since filing for bankruptcy on 11 November.

The company's founder Sam Bankman-Fried has since challenged aspects of the report in a [blog post](https://sambf.substack.com/p/ftx-us-balance-update-2023-01-17) that provides information on the assets that FTX US holds. He has been [accused](/news/article/ryan-salame-exposed-ftx-truth) of using customer funds to cover the debts incurred of his crypto-focused hedge fund, Alameda Research.

Bankman-Fried contested FTX's recent financial report. He claimed that an "extremely misleading" impression of the company's finances had been presented by FTX lawyers at Sullivan & Cromwell. An S&C spokesperson declined to comment on the statement. According to SBF's "best guess," the company still has enough funds to repay US customers, whom he estimates are owed between $181M and $497M.

Attorneys at the firm stated in a recent court filing that they had rejected efforts by SBF to remain involved in the company's bankruptcy proceedings. Also, he has been denied access to the company’s records since stepping down as CEO in November.

## FTX's recovery report

The company neither provided an estimate of the amount owed to FTX US or international customers nor responded to SBF's blog post.

In a recent FTX update on its recovery efforts following the $415M hack, the company reported that it had recovered $1.7B in cash, $3.5B in liquid cryptocurrency, and $300M in liquid securities.

The crypto assets recovered to date include $685 million in Solana, $529 million in FTX's proprietary FTT token, and $268 million in Bitcoin, based on the crypto prices on 11 November, 2022.


Red image of hacker hacking. Dollars falling from sky and Sam Bankman-Fried smiling in foreground

FTX US Reports $415 million Hacked

The global crypto crisis in recent months has sent shockwaves throughout various industries - especially the financial sector. 

More often than not, the infrastructure of crypto technology itself was blamed. However, Japanese crypto and finance experts have suggested otherwise, putting pressure on global financial regulators to monitor the industry properly.

One of the [major statements](https://www.bnnbloomberg.ca/japan-pushes-global-counterparts-to-regulate-crypto-like-banks-1.1870854) came from the deputy director-general at the Financial Services Agency's Strategy Development and Management Bureau, Mamoru Yanase. He believes that crypto should be regulated just like any other financial institution on a global level.

"What's brought about the latest scandal isn't crypto technology itself," said Yanase, with regard to FTX's failure in the US and Japanese crypto markets. "It is loose governance, lax internal controls, and the absence of regulation and supervision."

Financial experts from the US are mainly of the opposing opinion, as they consider crypto an inadequate technology - one that's not sustainable for the long term. However, the Japanese crypto viewpoint considers the industry to be of immense significance - only lacking the vigilant and proactive regulation that such a large industry requires.

This entire discussion is based on the [FTX case](/news/article/ftx-bankrupt-who-to-blame) that's been going on since November. The fallout from FTX sent the entire crypto industry into an unforeseen frenzy. And, looking back at it now, it was probably the lack of supervision and control that led to the whole mess in the first place.

## Sale of FTX’s Japanese crypto branch imminent

Mamoru Yanase also touched upon the sale of FTX Japan, as the crypto company went bankrupt last year. He mentioned how the Financial Services Agency has helped to "segregate client's assets" from FTX Japan's account to ensure their safety. 

Furthermore, he added that clients would be able to withdraw their assets from their FTX Japanese crypto accounts as early as February.

As per a report from [Cointelegraph](https://cointelegraph.com/news/japanese-regulators-want-crypto-treated-like-traditional-banks) based on a recent court filing in the US, there were 41 parties interested in buying out FTX Japan.

It only makes sense to put in place controls and regulations for crypto transactions, like those for the banking sector globally.

This must be done to avoid future issues like money laundering and stealing of assets. Otherwise, a proper revival of the crypto industry seems far off from happening any time soon - at least in the eyes of Yanase.


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