Tag: FTX

As the cryptocurrency community braces for the outcome of one of its most prominent figures, Sam Bankman-Fried, anticipation is rife ahead of his sentencing hearing scheduled for tomorrow. Bankman-Fried, the billionaire founder of the popular crypto exchange FTX, faces a pivotal moment as he awaits the decision on charges related to alleged regulatory violations and market manipulation. Here’s a closer look at what to expect from this highly anticipated legal proceeding.

FTX, a cryptocurrency exchange, aims to render its creditors’ “Sam Coins” essentially worthless amid the company’s ongoing bankruptcy proceedings, as revealed in court documents from a Tuesday hearing in Delaware.

In a dramatic turn of events, U.S. prosecutors have recommended an unprecedented prison sentence of 40 to 50 years along with an imposing fine exceeding $11 billion for Sam Bankman-Fried, the former CEO of FTX, a now-bankrupt cryptocurrency exchange. The sentencing, slated for March 28, follows Bankman-Fried’s conviction on seven counts of fraud and conspiracy by a jury in November.

Tether’s USDT has achieved a significant milestone, hitting an all-time high market capitalization of $100 billion, showcasing a 9% growth since the year began. This milestone cements Tether’s position as the dominant stablecoin, outpacing its closest competitor, USD Coin (USDC). Despite this success, a lawsuit has emerged involving cryptocurrency platform FTX and its alleged misuse of Tether in a profit-making scheme, underscoring challenges in the stablecoin sector.

A group of former FTX and Alameda Research employees have raised $17 million to develop Backpack, a new crypto exchange. With a Series A round valuing the startup at $120 million, Backpack aims to fill the void left by the collapse of previous industry giants. Led by experienced figures from FTX and Alameda Research, the project signals a new chapter in the crypto exchange landscape.

New York law firm Sullivan & Cromwell, renowned for its involvement in FTX’s bankruptcy case, is poised to undertake a pivotal role as Binance’s independent monitor. Following Binance Holdings Ltd.’s substantial multibillion-dollar settlement with the US government, Sullivan & Cromwell emerges as the leading contender for overseeing Binance’s compliance with its plea agreement.

Court filings from the FTX Debtors estate explain that DCI never became fully integrated into the FTX ecosystem before the bankruptcy proceedings. This, coupled with the uncertain future of FTX.US, has rendered DCI largely valueless to the estate, prompting the fire sale.

Bankrupt crypto exchange FTX seeks court approval to offload its $1.4 billion stake in AI firm Anthropic, raising funds for creditors while navigating the complexities of its financial restructuring.

Amidst ongoing market turbulence, FTX appears to be playing it safe. The beleaguered crypto exchange is reportedly unloading digital assets and stockpiling cash, nearly doubling its reserves to $4.4 billion by the end of 2023. This aggressive cash grab raises questions about FTX’s long-term strategy and the future of the wider crypto market.

Tensions flared in the FTX bankruptcy saga as creditors vehemently challenged the exchange’s proposed method for valuing customers’ digital assets. A December 27 court filing revealed FTX seeking approval to base claims on frozen prices from November 11, 2022, the day of its collapse. This translates to estimates of $16,871 for Bitcoin, just half its current value, and similarly underwhelming figures for Ethereum, Solana, and Avalanche.