FTX, the cryptocurrency exchange founded by Sam Bankman-Fried, filed for Chapter 11 bankruptcy protection in November 2022 following allegations of fraudulent activities. In a recent filing with the United States Bankruptcy Court for the District of Delaware, FTX debtors reported more than $4 billion in scheduled assets across various company silos as of November 2022.
The report submitted to the committee of unsecured creditors detailed the scheduled assets and claims of the company. The West Realm Shires silo, which includes FTX US and Ledger X, FTX.com, Alameda Research, and FTX Ventures, had roughly $4.8 billion in scheduled assets and $11.6 billion in scheduled claims.
According to the filing, Alameda Research held the majority of scheduled assets at approximately $2.6 billion. However, the report noted that the company had “potentially material claims that have been filed as undetermined,” suggesting that the actual value of Alameda’s assets could be even higher.
FTX.com had over $11.2 billion in scheduled claims, but claims from FTX Ventures were undetermined. The report also revealed that the data surrounding cryptocurrency holdings or transactions was limited. While the debtors reported more than 53 million FTX Tokens collateralized loans, including Bitcoin, Ether, XRP, and USD Coin, they stated that “additional tracing of wallet and blockchain activity remains an ongoing matter.”
The debtors’ report also noted that an investigation into crypto transactions as part of payments to FTX company insiders was ongoing. The former CEO of FTX, Sam Bankman-Fried, received more than $2.2 billion of the payments, according to the report.
In addition to the bankruptcy case, Bankman-Fried is facing both criminal and civil cases for his alleged involvement in fraudulent activities at the company.
The news of FTX’s bankruptcy and subsequent investigations have raised concerns about the transparency and security of the cryptocurrency industry. However, the company’s scheduled assets of over $4 billion suggest that FTX was a significant player in the crypto market, and the ongoing investigations will shed more light on the company’s operations and dealings.
The continuing dispute between FTX and its co-founder, Sam Bankman-Fried (SBF), has been making a stir in the cryptocurrency market, with many consumers left waiting for a resolution to the conflict between the two parties. In the meanwhile, customers of FTX Japan have made the executive decision to take things into their own hands by withdrawing all of their money.
The problems for FTX started in November 2022, when Binance CEO Changpeng Zhao made the announcement that his company would be liquidating its substantial holdings of FTX Token (FTT). This caused a domino effect that slowed down fund withdrawals across FTX and its subsidiaries. FTX Token (FTT) was the cryptocurrency that Binance held. The statement had a particularly negative impact on the Japanese cryptocurrency trading site Liquid Group, which has been controlled by FTX since February 2022. On November 15, withdrawals were fully halted for the platform.
Moving ahead in time to the 21st of February, FTX Japan commenced withdrawals, although the procedure was not an easy one. In order to complete the withdrawals, cash needed to be transferred from the now-defunct FTX Japan exchange onto an account with Liquid Japan. Despite this, some users saw this as a positive turn of events, and as a result, many of them started withdrawing all of their money from FTX Japan.
Hibiki Dealer, a well-known cryptocurrency trader based in Japan, just reported that they were able to effectively remove all of their cash off the site. Concerns have been expressed regarding the steadiness and dependability of cryptocurrency exchanges as a result of the scenario, even if it is unknown how many users have followed suit.
The volatility nature of the cryptocurrency market highlights the significance of effectively managing risk, which is also brought to light by this episode. It is essential for exchanges to have solid risk management procedures in place in order to safeguard not just themselves but also the users of their platform. In spite of this, it is still unknown how FTX will bounce back from this setback, which is particularly concerning given the current legal dispute with SBF that hangs over the firm.
In conclusion, while the decision by FTX Japan to restart withdrawals was a welcome step for its consumers, the scenario has underlined the issues that face crypto exchanges in a market that is very volatile. Cryptocurrency exchanges must place an increased emphasis on risk management and user safety in order to remain competitive in an industry where consumers are increasingly demanding accountability and transparency.
A request has been made by representatives for Voyager Digital’s unsecured creditors to have the former CEO of FTX, Sam Bankman-Fried (SBF), as well as numerous top-level officials from FTX and Alameda Research deliver papers and appear in court remotely for a deposition the next week.
According to a document that was filed on February 18 in the United States Bankruptcy Court for the Southern District of New York, it was indicated that a “Subpoena to Testify at a Deposition in a Bankruptcy Case” had been served on Bankman-Fried.
It was served by the Official Committee for the Unsecured Creditors of Voyager Digital Holdings, which is a defunct cryptocurrency loan exchange. They informed him that he needed to present for the “remote deposition” on February 23.
In addition, it ruled that Bankman-Fried had until February 20 to submit all of the “documents and conversations” that were sought.
This arises as a result of the fact that it was disclosed in a court filing on February 6 that attorneys for Voyager had filed a subpoena on Bankman-Fried in addition to Alameda CEO Caroline Ellison, FTX co-founder Gary Wang, and FTX’s head of product Ramnic Arora.
By the 17th of February, it was mandatory for every single person to provide up the desired information.
In the past, Judge John Dorsey had granted FTX debtors permission, in accordance with the regulations of the bankruptcy court, to issue subpoenas requesting information and documents from former FTX coworkers as well as family members of Bankman-Fried.
It was disclosed on February 16 that Bankman-bail Fried’s could potentially be revoked after Judge Lewis Kaplan stated that there was “probable cause” to believe that he engaged in attempted witness tampering. Judge Kaplan stated that there was “probable cause” to believe that Bankman-Fried attempted to tamper with a witness.
Previous court filings that were submitted on February 3 indicated that Bankman-holding Fried’s company, Emergent Fidelity Technologies, had also applied for protection under the bankruptcy code.
According to recent reports, the cryptocurrency news website CoinDesk is mulling over the possibility of being sold as its parent company, Digital Currency Group (DCG), wants to improve its financial standing.
The Wall Street Journal reports that CoinDesk has enlisted the assistance of investment bankers from the financial advising firm Lazard. These investment bankers are assisting the company in weighing its alternatives, which may include a whole or partial sale.
You know, I recently became aware that Coindesk is now available for purchase.
Charles Hoskinson, who tweets under the handle @IOHK Charles 19th of January, 2023 In the past few months, it has been reported that DCG has received multiple offers for the media company that are higher than $200 million. If these reports are accurate, this would represent an incredible return on investment for DCG given that the company was reportedly purchased by DCG for only $500,000 in 2016.
It would seem that Barry Silbert’s DCG is experiencing significant financial difficulties as of late. On January 17, the company informed its shareholders that it will be suspending dividend payments in an attempt to improve the soundness of its balance sheet and “preserve liquidity.”
On January 18, Bloomberg reported that another DCG subsidiary, crypto lending business Genesis Global, was intending to file for bankruptcy after it revealed that it owed creditors over $3 billion. This is undoubtedly the primary cause contributing to DCG’s current financial predicament.
According to the company’s website, DCG’s venture capital portfolio includes about 200 crypto-related startups, some of which include CoinDesk and Genesis.
The asset management company Grayscale Investments, the cryptocurrency exchange Luno, and the advising firm Foundry are all other businesses that are owned by DCG.
Some people believe that the article published by CoinDesk in November that revealed the irregularities in Alameda Research’s balance sheet was the first domino that eventually led to the collapse of the cryptocurrency exchange FTX as well as the liquidity issues that Genesis, its parent company DCG, and the broader cryptocurrency market are currently facing.
The top 1000 richest Ethereum wallets are gobbling up the popular memecoin Shiba Inu (SHIB) at an alarming rate.
Those top Ethereum wallets purchased more than $88 million worth of SHIB over a 24-hour period, according to the whale-monitoring bot WhaleStats.
One address, the 262nd-largest Ethereum wallet, purchased more than $34 million worth of Shiba Inu during that 24-hour period.
Another whale, the 29th-largest Ethereum wallet, bought nearly $40 million worth of SHIB.
Shiba Inu is trading at $0.000021 at time of writing, down 25% from where it was priced a week ago. The 14th-largest crypto asset by market cap is also down nearly 45% in the past month.
SHIB is a meme token that aims to be an Ethereum-based alternative to Dogecoin (DOGE). The crypto asset can be used for payments at various retailers or on its decentralized exchange ShibaSwap for non-fungible token (NFT) purchases and staking.
In total, the top 1000 Ethereum wallets hold more than $1.155 billion in SHIB, representing 13.78% of their non-Ethereum (ETH) holdings, according to WhaleStats. That’s second only to FTX Token (FTT), which represents about 15.56% of the addresses’ non-ETH holdings.
FTT is the exchange token of FTX, a cryptocurrency derivatives trading platform for futures, leveraged tokens and over-the-counter trading.
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Bitcoin (BTC) has stopped its decline and is attempting a recovery along with select altcoins. Some traders have been fearing a massive sell-off in Bitcoin but Capriole CEO Charles Edwards said that Bitcoin’s worst crashes have happened “due to miner capitulation (December 2018 and March 2020), when BTC fell below production costs.” However, the current production cost of Bitcoin was $34,000, which is well below the current price.
In a sign that institutional investors remain bullish on the crypto sector even after the recent fall, Cathie Wood’s Ark Invest bought 6.93 million shares of the special purchase acquisition company that will merge with Circle, the principal operator of USD Coin (USDC) and the second-largest stablecoin in terms of market capitalization.
Crypto market data daily view. Source:Coin360
Another sign that the crypto markets are maturing is the fact that nonfungible tokens (NFTs) have not responded negatively to the fall in crypto prices. A recent report by DappRadar said that NFT trading in the first ten days of 2022 generated $11.90 billion compared to $10.7 billion in Q3 2021.
Could Bitcoin continue its recovery and pull select altcoins higher? Let’s study the charts of the top-5 cryptocurrencies to find out.
BTC/USDT
The bulls are struggling to propel Bitcoin above the 20-day exponential moving average ($44,415) for the past few days but a minor positive is that buyers have not given up much ground. This suggests that bulls are buying on every minor dip.
BTC/USDT daily chart. Source: TradingView
If buyers push and sustain the price above the 20-day EMA, it will signal a possible change in trend. The BTC/USDT pair could then rally to the 50-day simple moving average ($47,987) where the bears may again mount a stiff resistance. A break and close above this resistance could clear the path for a rally to $52,088.
Contrary to this assumption, if the price fails to rise above the 20-day EMA, it will suggest that the sentiment remains negative and traders are selling on rallies. The bears will then attempt to sink the price below the critical support at $39,600. If they succeed, the pair could extend its downtrend.
BTC/USDT 4-hour chart. Source: TradingView
The moving averages have flattened out and the relative strength index (RSI) is just above the midpoint on the 4-hour chart. This suggests a range-bound action in the short term. The pair could remain stuck between $39,600 and $45,456.
A break and close above $45,456 could tilt the advantage in favor of the bulls, signaling the start of a possible rally to $52,088. Alternatively, a break and close below $39,600 could indicate the resumption of the downtrend.
NEAR/USDT
NEAR Protocol’s NEAR token is in a strong uptrend. The price broke above the previous all-time high at $17.95 on Jan. 11, signaling the resumption of the up-move. The bears pulled the price back below $17.95 on Jan. 12 but the bulls bought this dip and reclaimed the level on Jan. 13.
NEAR/USDT daily chart. Source: TradingView
Both moving averages are sloping up and the RSI is in the positive territory, indicating that the path of least resistance is to the upside. If bulls do not allow the price to dip below the breakout level at $17.95, the NEAR/USDT pair could rally to $25.44.
Alternatively, if bears pull the price below $17.95, the pair could drop to the 20-day EMA ($16.42). A bounce off this level could keep the uptrend intact but a break and close below it will suggest that traders are rushing to the exit. The pair could then decline to $13.
NEAR/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the price has been taking support at the 20-EMA. The upsloping moving averages and the RSI in the positive territory indicate that the short-term trend favors the buyers.
If bulls propel the price above $20.59, the uptrend could begin. The pair could then rise to $22 and later to $25.
Contrary to this assumption, if the price drops below the 20-EMA, it will indicate that short-term traders may be booking profits. The pair could then drop to the 50-SMA. A break and close below this support will indicate the start of a deeper correction.
ATOM/USDT
Cosmos (ATOM) is attempting to form an inverse head and shoulders pattern, which will complete on a breakout and close above the overhead resistance at $44.80.
ATOM/USDT daily chart. Source: TradingView
The rising moving averages and the RSI in the overbought territory indicate that the path of least resistance is to the upside. A close above $44.80 could open the gates for a rally to the psychological level at $50 and then toward the pattern target at $69.42.
Alternatively, if the price turns down from the overhead resistance, the ATOM/USDT pair could drop to the 20-day EMA ($36). This is a key level for the bulls to defend. If the price rebounds off this level, the bulls will again attempt to drive the pair above the overhead resistance and resume the uptrend.
A break and close below the 20-day EMA will be the first sign that the up-move could be losing steam. The pair could then drop to $32.90.
ATOM/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the price has broken out of the symmetrical triangle pattern, indicating that the uncertainty has resolved in favor of the buyers. The bears may attempt to defend the overhead resistance at $44.80 but if they fail, the pair could rally to the pattern target at $51.19.
Alternatively, if the bears successfully defend the resistance at $44.80, the pair could drop to the 20-EMA. If the price rebounds off this support, the bulls will again try to clear the overhead hurdle. This positive view will be negated on a break and close below the 50-SMA.
Related:Dogecoin leaps 25% after Musk announces DOGE payments for Tesla merch
FTM/USDT
Fantom (FTM) is in a strong uptrend. The price action of the past few days has formed an inverse (IH&S) which will complete on a break and close above $3.17.
FTM/USDT daily chart. Source: TradingView
The bears may attempt to stall the rally at $3.48 but if bulls push the price above this level, the next leg of the uptrend could begin. The up-move could first reach $4 and later continue its journey toward the pattern target at $5.11.
Contrary to this assumption, if the price turns down from the overhead resistance, the bears will attempt to pull the FTM/USDT pair to the 20-day EMA ($2.62). If the price turns up from this level, it will suggest that the sentiment remains positive and traders are buying the dips.
However, a break and close below this support will signal the start of a deeper correction to the 50-day SMA ($2.07).
FTM/USDT 4-hour chart. Source: TradingView
The bears attempted to stall the up-move at $3.17 but the bulls had other plans. They bought the dip to the 20-EMA and have pushed the price above the overhead barrier. If bulls sustain the price above the breakout level, it will signal the resumption of the uptrend.
On the other hand, if bears pull the price below $3.17, the pair could drop to the 20-EMA. This is an important level to watch out for because a break and close below it could indicate that the current breakout may have been a bull trap. The pair could then drop to $2.80 and later to the 50-SMA.
FTT/USDT
FTX Token (FTT) has been in a strong corrective phase for the past several weeks. The bulls pushed the price above the downtrend line on Jan. 14, signaling a possible change in trend.
FTT/USDT daily chart. Source: TradingView
The moving averages are on the verge of a bullish crossover and the RSI has risen above 64 after forming a positive divergence. This suggests that bulls are attempting a comeback. If the price sustains above the downtrend line, the FTT/USDT pair could rise to $53.50.
Contrary to this assumption, if the price turns down from the current level and breaks below the moving averages, it will suggest that the breakout was a bull trap. That could pull the price down to $33.76. A break and close below this support could open the doors for a possible drop to $24.
FTT/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows the formation of a falling wedge pattern. The buyers pushed the price above this pattern and have also cleared the horizontal resistance at $45.07.
Both moving averages are sloping up and the RSI is in the overbought zone, indicating that bulls have the upper hand. If bulls maintain the price above $45.07, the pair could start its march toward the psychological resistance at $50.
This positive view will invalidate if the price turns down and re-enters the wedge. Such a move will indicate that demand dries up at higher levels.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Crypto exchange FTX is launching a $2 billion venture fund to support crypto and Web3 projects.
The move was announced in a blog post penned by FTX CEO Sam Bankman-Fried, Ramnik Arora, the exchange’s head of product, and Amy Wu, the new head of FTX Ventures.
The executives say they want to “make things easy for builders.”
“Our first $2B fund will be flexible capital where we can invest in equity and/or tokens, at any check size and stage.
We measure time horizons in decades. We don’t mind if you’re anon. We won’t ask you to present in front of an investment committee.
We’re excited about crypto. We believe digital assets and blockchain technology can reshape our world in the next few decades. Some sectors we’re excited about are gaming, social, software, fintech, and healthcare.
We will also occasionally invest outside of crypto.”
Bankman-Fried says on Twitter he hopes FTX’s new fund will help other crypto entrepreneurs avoid some of the pitfalls he encountered with traditional venture capital firms.
“As a founder, it’s important to support other founders creating great companies. Hopefully, this will allow us to do that a lot more.”
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Only a minority of Shiba Inu (SHIB) holders are currently in profit as the meme coin rests nearly 70% off its all-time high, according to cryptocurrency analytics platform IntoTheBlock.
To determine which holders are currently nursing losses, IntotheBlock looked at wallets with a Shiba Inu balance, identified the average purchase amount of the coins, and compared the figure to the current price of the Dogecoin (DOGE) competitor.
A holder is underwater or “out of the money” if the average purchase amount is greater than the current price. On the other hand, an investor is listed as “in the money” or in profits if the average cost is less than that current price.
When the average cost is the same as the current price, then the holder is “at the money” or at breakeven.
With memecoin currently trading at $0.000027, 56% of Shiba Inu holders are in the red. Only 40% of Shiba Inu investors are in profit while 4% are breakeven.
IntoTheBlock also reveals that 78% of Shiba Inu holders are deep-pocketed investors or whales.
The crypto insights firm also says that 89% of SHIB holders have held the memecoin for a period of between one and 12 months while 11% have held Shiba Inu for less than one month.
Per the whale-monitoring platform WhaleStats, the top 1,000 non-exchange Ethereum (ETH) whales currently own $1.39 billion worth of SHIB tokens. SHIB currently ranks third on the list of top Ethereum whale holdings. Ethereum itself ranks first, followed by FTX Token (FTT), the utility token of crypto derivatives exchange FTX.
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Ethereum whales are gobbling up a new favorite altcoin, temporarily displacing Shiba Inu (SHIB) as the top alternative digital asset amongst big buyers.
Data from whale-surveilling platform WhaleStats indicates the top 1000 largest Ethereum wallets are now holding more than $1.54 billion worth of FTX Token (FTT).
The total value of FTT held by whales briefly skirted above $1.60 billion, enough to temporarily make FTT the biggest token position by dollar value, excluding Ethereum (ETH), among the top 1000 Ethereum whales.
That title has now reverted back to the popular Ethereum-based memecoin Shiba Inu. The top 1000 ETH addresses hold more than $1.78 billion worth of SHIB at time of writing.
FTT is the exchange token of FTX, a cryptocurrency derivatives trading platform for futures, leveraged tokens and over-the-counter trading. The 35th-ranked crypto asset by market cap is trading at $38.54 at time of writing, down 1.64% in the past 24 hours.
WhaleStats also notes that the top 1000 Ethereum wallets hold more than $568 million worth of OKB, a cryptocurrency issued by OKEx Blockchain Foundation. The OKB utility token allows traders on the crypto exchange OKEx to pay for fees, earn interest and participate in new digital asset projects.
OKB, the 28th-ranked crypto asset by market cap, is trading at $28.52 at time of writing, down 4.84% in the last day.
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Fresh data shows the world’s biggest Ethereum whales are stocking up on several altcoins that power crypto exchanges.
The latest numbers from WhaleStats reveal the 1,000 wealthiest non-exchange Ethereum addresses are invested heavily in FTT, the native token of the FTX cryptocurrency marketplace. FTT currently accounts for 7.24% of all holdings at a value of over $1.6 billion.
At time of writing, FTT is ranked third on the WhaleStats top 10, with the average quantity held per wallet being 39,274 tokens valued at $1.6 million per holder.
Also making the list is OKB, the utility token of the OKEx cryptocurrency spot and derivatives exchange. The site caters to traders, miners and institutional investors.
Source: WhaleStats
Whale wallets have allocated 2.78% to OKB for a total value of $633 million. Making OKB fifth on the WhaleStats list, with the average number of tokens owned at 19,496 for a value of $633,247.
Last on the list is Bitpanda Ecosystem Token, whose native token BEST runs on the Ethereum blockchain. The Austria-based Bitpanda marketplace has nearly 2.7 million customers and was recently valued at over $4 billion.
WhaleStats reports that BEST accounts for 2.12% of total holdings with a value above $483 million. The average wallet owns 454,945 tokens for a value of $483,173.
Source: WhaleStats
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