FTX & Alameda Collapse Turns Dark
FTX drama turned from native mistake to potential fraud, with FTX reportedly using customer funds to prop up its sister hedge fund Alameda Research without permission.
Reports emerged former CEO Sam Bankman Fried allegedly built a backdoor to siphon customer funds without altering internal compliance rules.
Binance Starts Crypto Recovery Fund
Binance CEO 'CZ' pledged to create a crypto industry recovery fund to stem the contagion from FTX's collapse.
As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4
— CZ 🔶 Binance (@cz_binance) November 6, 2022
FTX Hacked, Customer Funds Drained
Things took a nasty turn as >$600M of customer funds were transferred out of FTX's wallets hours after the exchange filed for bankruptcy.
Are Crypto.com and Gate.io the Next Exchange Dominos to Fall?
Cypto.com set off alarm bells after accidentally transferring 80% of funds to the wrong wallet (Gate.io). It triggered massive withdrawals from the exchange as confidence plummeted. It also showed that 20% of crypto.com's reserves are made up of meme coins.
Nike Launches .Swoosh Web3 Platform
Nike launched a web3 platform to offer Polygon-based NFT products. Nike acquired web3 studio RTFKT in 2021 and remains one of the biggest adopters of web3. User registrations for .Swoosh will open up later this week.
US banks launch Digital Dollar Blockchain Pilot
A group of US banking institutions, including HBSC, Mastercard, and Wells Fargo, announced a proof-of-concept digital money platform called the Regulated Liability Network. The platform will work with the Federal Reserve and run for 12 weeks to use blockchain to create opportunities to improve financial settlements.
Genesis Pauses Withdrawals
Genesis—one of the most prominent industry players ($2.8B in active loans)—is the latest player to halt withdrawals due to the FTX collapse and comes only days after a $140M equity infusion.
As a result, Circle and Gemini Earn programs halted due to the Genesis Lending pause.
The full fallout from the FTX collapse is slowly surfacing; other impacted parties include:
ICYMI: Genesis Global Capital suspends redemptions, with impact spreading to Geminihttps://t.co/qxP7ra5bVJ
— The Block (@TheBlock__) November 16, 2022
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