FTX

2022 - 11 - 13

Billions Of FTX Assets In Limbo As Exchange Follows Voyager Into ... (Forbes)

Once the white knight of crypto, Sam Bankman-Fried now needs someone to bail him out. Illustration by Gracelynn Wan for Forbes; Photos by Saul Loeb/Getty Images.

At that juncture, FTX thought it had enough [money](https://www.forbes.com/sites/mariagraciasantillanalinares/2022/09/27/ftx-pays-14-billion-to-get-voyagers-crypto-customers/?sh=15fe5c744168) to return most of the assets to Voyager owners in hopes of retaining some of them as clients. If it turns out that FTX used them for its own purposes, including possibly lending them to Alameda, that would lift the clients in the hierarchy of who is owed money during the bankruptcy. Despite Bankman-Fried owning a 7.6% stake in the brokerage after he invested around $650 million in May, Tenev insisted there was no direct or material exposure to FTX, adding that his brokerage has seen crypto inflows increase as a result of the turmoil. “FTX was sort of the white knight in Voyager,” says Gayda. With roughly $6 billion in cash at the end of the latest quarter, Robinhood likely won’t be hurt badly even if Bankman-Fried is forced to unload his stake as part of bankruptcy proceedings. If the FTX customers, who will be treated as unsecured creditors in bankruptcy, want to be proactive, they can do more than wait to be rescued. Over 63% of the assets are stablecoins, including tether and dai, which are meant to be fully collateralized with liquid assets and thus shielded from an event like the selloff that has wiped about 20% off of crypto values in the past week. “There’s really a crisis of confidence with respect to customers in the crypto industry,” says Gayda. Investors should “brace themselves for contagion from FTX’s bankruptcy,” Anto Paroian, CEO of crypto hedge fund ARK36, said in emailed comments. Valued at $32 billion in its latest funding round, FTX’s worth has crashed in the span of one week. The main option for FTX customers to recoup at least some of their holdings, says Robert Gayda, partner at Seward & Kissel corporate restructuring and bankruptcy group, is for a “Voyager-style sale” of any remaining crypto assets. Assets still under the company’s control would be put up for sale to the highest bidder.

FTX Says It Moved Remaining Funds to Cold Wallets to 'Mitigate ... (Coindesk)

FTX US General Counsel Ryne Miller said the crypto exchange moved funds following a series of "unauthorized transactions.".

FTX says investigating 'unauthorized transactions' (Reuters)

Collapsed crypto exchange FTX said on Saturday it had seen "unauthorized transactions", with analysts saying millions of dollars worth of assets had been ...

FTX targeted in $400M hack as bankruptcy unfolds (Axios)

A cybercriminal appears to have attempted to steal $400 million of customer funds from the crypto exchange FTX as the platform grapples with its bankruptcy, ...

FTX investigating a possible $473 million hack (CNN)

Cryptocurrency exchange FTX, which filed for bankruptcy Friday, is investigating whether crypto assets were stolen and has moved all its digital assets ...

FTX held less than $1bn in liquid assets against $9bn in liabilities (Financial Times)

We'll send you a myFT Daily Digest email rounding up the latest FTX Trading Ltd news every morning. Sam Bankman-Fried's main international FTX exchange held ...

Between $1 billion and $2 billion of FTX customer funds have ... (CNBC)

Reuters reports that at least $1 billion worth of customer funds have vanished from the failed crypto exchange.

Alameda, FTX executives knew crypto exchange was using ... (Reuters)

FTX-affiliated crypto trading firm Alameda Research's Chief Executive Officer Caroline Ellison and senior FTX officials knew that the crypto exchange had ...

FTX says "unauthorized access to certain assets has occurred" after ... (CBS News)

FTX is the third crypto company to seek bankruptcy protection this year, following Voyager Digital and Celsius Network. The filing also clouds the fate of ...

FTX is investigating a potential hack (The Washington Post)

More than $500 million appears to be missing from the crypto currency exchange, following a bankruptcy filing Friday.

FTX hit by rogue transactions, analysts saw over $600 million outflows (Newshub)

FTX filed for bankruptcy on Friday, one of the highest profile crypto blowups.

Hundreds of Millions of Dollars Drained From FTX Overnight in ... (Yahoo Finance)

Several wallets belonging to FTX were rapidly drained before midnight. An FTX Telegram admin called it a hack and warned users not to visit the site.

Probe underway after funds vanish from bankrupt crypto exchange ... (PBS NewsHour)

Collapsed cryptocurrency trading firm FTX confirmed there was “unauthorized access” to its accounts, hours after the company filed for Chapter 11 bankruptcy ...

But it would be unusual for that to happen on a Friday night, said Molly White, cryptocurrency researcher and fellow with the Library Innovation Lab at Harvard University. “And that is just tragic, really.” Politicians and regulators are calling for stricter oversight of the unwieldy industry. Until recently, FTX was one of the world’s largest cryptocurrency exchanges. Another $186 million was moved out of FTX’s accounts, but that may have been FTX moving assets to storage, said Elliptic’s co-founder and chief scientist Tom Robinson. FTX is also coordinating with law enforcement and regulators, the company said.

Telstra Ventures stung by FTX crypto collapse as market surveys ... (The Australian Financial Review)

Telstra Ventures is among Australian losers from FTX's collapse, as local industry insiders say its failure is “heartbreaking” but not terminal for crypto.

This is a huge setback for the crypto industry. Independent Reserve is audited voluntarily in Australia but in Singapore it is part of law because they have a license there. “This is an example of poor risk control and possibly criminal execution from FTX and is completely heartbreaking. However, a knee-jerk, heavy-handed local clamp-down likely won’t achieve much.” Independent Reserve got the first license in Singapore. Connect with Paul on [[email protected]](mailto:[email protected]) Telstra Ventures’ managing partner, Matthew Koertge, declined to comment on its stake in FTX on Sunday. US VC giant Sequoia last week wrote to its backers to tell them that $US210 million it had poured into FTX was now worth nothing. FTX was in the Bahamas and didn’t even have a board of directors,” he said. Drawing a comparison to the global financial crisis, Mr Rogers said the collapse of Lehman Brothers had not stopped people from putting money in banks and he expected the FTX bankruptcy would be similar, by inspiring a “flight to quality” exchanges. Mr Bankman-Fried denied this claim. [feature in the cover](https://www.afr.com/young-rich/can-this-man-solve-crypto-s-2trn-image-problem-20220915-p5bict) story of The Australian Financial Review Magazine’s Young Rich issue this month as the wunderkind who “built a $US25 billion fortune from crypto” and was now “trying to stop the meltdown”.

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