FTX - Optimisus

A US bankruptcy judge is considering the approval of an independent investigation into the FTX collapse.

1 year ago 1 min read

Independent Bankruptcy Investigation for FTX Under Review

A US bankruptcy judge is considering the approval of an independent investigation into the FTX collapse. FTX, once considered a trustworthy platform, collapsed after it was revealed that its CEO was using customer funds inappropriately. Crypto exchange FTX objects to the appointment of an independent examiner, stating that it would only duplicate work already being done by the company, creditors, and law enforcement agencies. FTX creditors’ committee does not support the investigation, while state securities regulators in Texas, Vermont, and Wisconsin support it. Additionally, FTX is requesting a refund from former donors and is reportedly frustrated by the attention its

Justin Sun has supported the launch of the Debt DAO project

1 year ago 1 min read

Justin Sun Supports FTX Debt Token Despite Possible Securities Law Violation

Justin Sun, the founder of cryptocurrency exchange Huobi, has supported the launch of the Debt DAO project, which claims to be issuing FTX user debt as a bond token called FUD. Debt DAO said it has received notification of around $100 million in debt from FTX creditors. Each FUD token has a value of $1 and will have an initial supply and circulation of 20 million. If the confirmed FTX debt amount is $60 million, Debt DAO will issue an additional 40 million FUD tokens through an airdrop. Huobi listed the FUD token for trading on Feb 5, and Sun

Crypto Exchange FTX to Take Legal Action Against Political Donors

1 year ago 1 min read

FTX Announces Intent to Sue Political Parties Receiving Funds

FTX, the once high-flying crypto exchange that filed for bankruptcy in November, is calling for the return of funds that were allegedly misused by former CEO Sam Bankman-Fried. The new CEO, John John Jay Ray III, warned that the company would take legal action to recover the funds along with interest if they are not voluntarily returned. Bankman-Fried, a major donor to political candidates, has been charged with eight financial crimes, including securities fraud, money laundering, and campaign finance violations. He has been accused of misusing billions of dollars in customer funds to support his trading firm, purchase private real

1 year ago 1 min read

US Prosecutors Investigate Silvergate over FTX and Alameda Accounts: Bloomberg

U.S. prosecutors are investigating California-based cryptocurrency bank Silvergate Capital over its handling of accounts linked to now-bankrupt crypto exchange FTX and Alameda Research. The Department of Justice’s fraud unit is conducting the investigation. Silvergate has not been accused of any wrongdoing and the investigation is in its early stages. The news caused Silvergate’s shares on the NYSE to drop 18% in after-hours trading, erasing most of the 29% gain during the day. The company posted a net loss of $949 million in 2022 compared to a net income of $75.5 million in 2021. In January, Silvergate laid off 40% of

Binance told WazirX to withdraw their assets

1 year ago 2 mins read

Binance Demands WazirX Move Funds Amid Ongoing Dispute

Binance, one of the largest cryptocurrency exchanges in the world, has invited WazirX, the Indian crypto exchange operated by Zanmai Labs, to arrange for the withdrawal of any remaining assets held in Binance wallets. The move, which was outlined in a blog post on Friday, is intended to alleviate concerns about the fate of customer funds if Binance and WazirX end their collaboration. However, the invitation has only served to further escalate the ongoing fight between the two crypto exchanges. The public spat between Binance and WazirX began in August 2022, when Binance CEO Changpeng Zhao (CZ) claimed that Binance

FTX has left its customers vulnerable to scams

1 year ago 1 min read

FTX warns customers of fraudulent activity

The collapse of crypto exchange FTX has left its customers vulnerable to scams and frauds by third-party criminals. The company has acknowledged this and issued an alert to its customers about recent attempts to swindle them. In particular, FTX has warned customers not to pay fees or provide account passwords as part of any return of customer assets. The Oregon Division of Financial Regulation has also warned that scammers are taking advantage of the situation to “re-victimize” those already harmed. Furthermore, a deep fake video has been released featuring FTX founder Sam Bankman-Fried claiming to double customer crypto compensation. The

FTX Japan Offers No Specifics on Returning Funds

1 year ago 1 min read

FTX Japan Offers to Repay Funds, But No Date Set

FTX Japan has announced that customers will be able to withdraw their assets via Liquid, a Japanese cryptocurrency exchange owned by FTX, at some point in February. The delay in making the assets available is due to technical issues, according to Japan’s Financial Services Agency. Despite FTX’s Chapter 11 filing in the US, there is no objection to the withdrawal plan. Japan has strong regulations for cryptocurrency exchanges, requiring them to register with the FSA and comply with anti-money laundering laws. FTX Japan was in a relatively stable position compared to its parent company, but it is currently being auctioned

FTX Creditors Aim to Subpoena Sam Bankman-Fried's Key Inner Circle Members

1 year ago 1 min read

FTX Debt Collectors Seek Legal Action Against Sam Bankman-Fried’s Close Associates

Debtors of FTX, the cryptocurrency exchange, are seeking subpoenas to obtain information from the inner circle of its founder, Sam Bankman-Fried. The United States Bankruptcy Court for the District of Delaware filed a motion to locate and secure assets belonging to the company and its investors. Only the legal representatives of FTX’s COO and Bankman-Fried’s father have agreed to share information. FTX’s former CEO has not cooperated with the bankruptcy proceedings despite public promises on social media. Several other FTX insiders, including Barbara Fried, Gary Wang, and Caroline Ellison, have also ignored requests for information. The subpoena is expected to

Massive stETH-to-Ethereum Swap by SBF-Associated Wallets During Market Depeg

1 year ago 1 min read

$90M in stETH Swapped for Ethereum in SBF-Linked Wallets

Blockchain security firm PeckShield identified three wallets that converted 63,860 staked Ethereum (stETH), worth approximately $90 million, to Ethereum (ETH) when the stETH/ETH peg dropped to a monthly low between May 2022 and June 2022. The three wallets withdrew stETH from FTX, swapped it for ETH, and transferred the funds back to the exchange, leading PeckShield to believe the transactions might be connected to FTX founder Sam Bankman-Fried (SBF). Two wallets, “0x1b23” and “0x2e85,” withdrew a total of 49,000 stETH, worth $66 million, from FTX, converted it to 42,000 ETH, and returned the funds to FTX. The motive behind the

1 year ago 1 min read

FTX Works to Remove Turkish Investments from Bankruptcy Case

FTX, a cryptocurrency exchange, has filed for bankruptcy in the US and is seeking to exclude its Turkish units from the case. Turkish authorities announced a probe into FTX’s activities and ordered the seizure of nearly all its assets, making it difficult for FTX to include them in restructuring plans. FTX stated that the US court’s orders have no legal or practical effect in Turkey and the Turkish government is unlikely to comply with them. The request concerns FTX Turkey and SNG Investments, both described as “not strategic” with assets and activities limited to Turkey. FTX’s parent company can still

1 year ago 1 min read

UK Authority Investigates Bankman-Fried Charity’s Activities

UK Charity Commission Investigates Effective Ventures Foundation Over Risks to Assets: The Charity Commission for England and Wales is investigating the Effective Ventures Foundation, a charity backed by Sam Bankman-Fried, founder of the now-bankrupt crypto exchange FTX. The investigation will focus on the extent of the risk to the charity’s assets and whether the trustees are fulfilling their duties to protect them. The charity reported FTX’s bankruptcy as a “serious incident” due to the large funds it received from the exchange’s philanthropic arm. The trustees are currently cooperating fully with the inquiry, which may expand in scope if further regulatory

FTX's Tumble Predicted by Aussie Watchdog

1 year ago 1 min read

Report Reveals Aussie Regulator’s Worries on FTX Months Before Implosion

FTX’s Australian subsidiary was flagged by Australia’s financial regulator, ASIC, as much as 8 months before the exchange went bankrupt. According to documents obtained by Guardian Australia, ASIC had concerns about FTX Australia’s operations and license obtained through a company takeover. FTX Australia acquired its license by taking over IFS Markets in Dec 2021 and began operations in Mar 2022, sidestepping the usual level of scrutiny for new licensees. ASIC issued a Sect 912C notice to FTX in Mar 2022, requiring it to provide documents for assessment of AFSL license conditions. The regulator had FTX under surveillance activity and issued