The FTX liquidation crisis turned bankruptcy saga continues as a recent filing reveals additional information on Sam Bankman Fried’s leadership and the exchange's final days. On Nov. 14, a new document was filed in a United States’ federal court in Delaware, where FTX US is based. It revealed that the exchange may have, “more than 1 million creditors in these Chapter 11 Cases." This comes after Bankman-Fried's voluntary Chapter 11 bankruptcy filing on Nov.11, which initially set forth 100,000 creditors. These speculated 1 million creditors are said to belong to more than 100 different companies. The document also highlights Bankman-Fried’s …

FTX founder Sam Bankman-Fried has denied speculation that he’s fled to Argentina as the saga surrounding his collapsed cryptocurrency exchange continued to unfold in near-real time on Twitter. In a text message to Reuters on Nov. 12, Bankman-Fried, who also goes by SBF, said he was still in the Bahamas. When Reuters asked him specifically whether he had flown to Argentina, as the rumors suggest, he responded: “Nope.” Users took to Twitter over the weekend to speculate whether SBF was on the run after filing for Chapter 11 bankruptcy for FTX Group, which includes a slew of companies such as …

Collapsed cryptocurrency exchange FTX reportedly faced a series of unauthorized transactions over the weekend, prompting several warnings from users and analysts against interacting with its mobile app or website. Wallets associated with FTX saw roughly $266.3 million worth of outflows on Nov. 11, according to analytics firm Nansen. FTX US, a separate entity operating in the United States, was reportedly drained of $73.4 million. $266M has been withdrawn from FTX in the last 24 hours $73M from FTX US pic.twitter.com/qoiroPSegq — Nansen (@nansen_ai) November 12, 2022 The magnitude of the alleged attack appears to have intensified overnight, with net outflows …

The recent tensions between the two major crypto exchanges FTX and Binance, which was accompanied by a massive selloff of FTX Token (FTT), resulted in the collapse of roughly 130 companies linked to FTX Group — including FTX Trading, FTX US, West Realm Shires Services, and Alameda Research. Following the resignation of FTX CEO Sam Bankman-Fried and the revelation of the company’s intent to file for Chapter 11 bankruptcy, on-chain data hinted at the commencement of bankruptcy proceedings as multiple FTX wallets were found transferring funds over to a common Ethereum (ETH) wallet address. The wallet address in question received …

Amy Wu, an investor in FTX and the head of the firm’s venture capital arm, FTX Ventures, has reportedly resigned her position. According to a Nov. 11 report from The Information, Wu resigned as head of FTX Ventures following the announcement FTX would be moving forward with bankruptcy proceedings in the United States. According to her LinkedIn profile, Wu had been based at FTX Venture’s offices in The Bahamas since January. FTX Ventures’ website along with that of Alameda Research went dark on Nov. 9 amid its parent company’s liquidity crisis and deal with Binance falling apart. Wu said on …

Within a week, crypto exchange FTX has gone from proposing an acquisition by Binance to sort out its liquidity issues to filing for bankruptcy under Chapter 11 in the District of Delaware. In a Nov. 11 tweet, FTX said roughly 130 companies in FTX Group including FTX Trading, FTX US — under West Realm Shire Services — and Alameda Research had started proceedings to file for bankruptcy in the United States. FTX CEO Sam Bankman-Fried has also resigned his position, and will be succeeded by John Ray. Press Release pic.twitter.com/rgxq3QSBqm — FTX (@FTX_Official) November 11, 2022 "The immediate relief of …

Bitcoin (BTC) and cryptocurrency may “take years to recover” from the FTX scandal, one industry analyst warns. In a Twitter thread on Nov. 11, Filbfilb, co-founder of trading suite Decentrader, said that the Terra LUNA debacle was itself still playing out. Filbfilb: "I've never seen such a debacle" The crypto industry is experiencing “a clear case of what goes up must come down,” Filbfilb summarizes. As the fallout from FTX and Alameda Research only begins to become apparent, many industry businesses and associated tokens have been left reduced to a shadow of their former selves. Amid bankruptcy concerns from those …

Crypto lender Celsius was one of the biggest casualties of the bear market. After halting withdrawals for months due to “extreme market conditions,” the distressed lender officially filed for Chapter 11 bankruptcy on July 13. Now, the federal judge overseeing the bankruptcy proceedings has ordered the case examiner to determine whether the company was operating like a Ponzi scheme. Disgruntled Celsius customers have made a strong case that the company’s business operations met the legal definition of a Ponzi. After all, it didn’t take long for Celsius’ business model to crumble under volatility. This is one case we should all …

The judge overseeing the Celsius bankruptcy case has ordered the examiner and the official committee of Celsius creditors to determine who will head a probe into whether the firm was operating like a Ponzi scheme. The order during the Nov. 1 hearing comes in response to allegations from customers that Celsius had used assets of new users to pay yields and facilitate withdrawals to existing users, and as a result, fits the legal definition of a Ponzi scheme. The judge had approved the appointment of an independent examiner on Sep. 9 to look into aspects of Celsius’ business following calls …

Bitcoin mining firm Core Scientific is reportedly considering a potential bankruptcy amid a group of its convertible bondholders consulting restructuring lawyers. According to a Nov. 1 report from Bloomberg Law, the Core Scientific bondholders worked with legal firm Paul Hastings following a United States Securities and Exchange Commission filing suggesting financial distress. The Oct. 26 filing indicated that the mining company was unable to meet its financial obligations in late October and early November, citing the low price of Bitcoin (BTC), rising costs of electricity, an increase in the global BTC hash rate and legal issues with crypto lending firm …

The U.S. Trustee overseeing the Celsius chapter 11 bankruptcy case, William Harrington, has objected to a Celsius motion that would see 62 of its 275 employees paid a retention bonus totaling $2.96 million. The Trustee has blasted Celsius in its supporting statement for the objection filed on Oct. 27, noting: “It defies logic, not to mention the Bankruptcy Code, that a company where the majority of its functions are no longer providing services, would now propose a multi-million dollar bonus scheme.” For the “bonus motion”, as it is aptly named, to receive approval, the Trustee claims that Celsius must show …

Respected former decentralized finance (DeFi) project founder and developer Andre Cronje has resurfaced after a lengthy hiatus to call for tighter regulations on the crypto sector amid the implosion of multiple firms this year. The comments echo similar sentiments to that of FTX CEO Sam Bankman-Fried (SBF), who also called for more stringent digital asset industry standards last week, including greater consumer protections, transparency, and disclosures. SBF was met with strong community pushback however, with many people accusing the CEO of trying to monopolize or censor the DeFi space, among other things. In an Oct. 25 blog post titled “The …