🗞 Caroline Confesses Everything 😳

November 15, 2022

November 15, 2022

On the Pod…

Wassielawyer, a lawyer specializing in restructuring and insolvency, and Thomas Braziel, founder and CEO of 507 Capital, talk about the bankruptcy of FTX. Show highlights:

  • what the bankruptcy process of FTX is expected to look like

  • why FTX got to the the point of filing for bankruptcy protection

  • why Wassie thinks Alameda is dead

  • why FTX filed for bankruptcy in the US given that it's a Bahamian company

  • how FTX's balance sheet is composed and whether it includes Alameda

  • whether Justin Sun will be dragged into the bankruptcy

  • how FTX's terms of service differ from Celsius’s and Voyager’s

  • how the $600 million hack affects the bankruptcy proceeding

  • whether it's worth it to spend millions of dollars in law firms to go after the hacked money

  • what's the impact of the 192 million FTT tokens that were printed Saturday night

  • what will happen with the fork of Serum and the forked tokens

  • the consequences for all the projects that FTX invested in

  • why Wassie thinks that tokenizing the liabilities could be a good potential solution

  • how the FTX's bankruptcy affects Voyager's proceedings and customers

  • whether FTX’s bankruptcy has put BlockFi in trouble

What’s Poppin’?

Alameda’s Caroline Ellison told the New York Times that the trading firm used FTX customers’ funds to make loan payments after the crypto crash earlier this year.

BlockFi, the crypto lender that halted withdrawals last week, denied claims that it held the majority of its assets on bankrupt crypto exchange FTX.

Some Crypto.com users have been waiting on withdrawals for more than 12 hours as high network traffic led to significant delays.

Paxos has frozen funds linked to FTX at the request of U.S. Federal Law enforcement.

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In Other News…✍️✍️✍️

  • Changpeng Zhao said Binance plans to implement a new Proof-of-Reserves protocol developed by Vitalik Buterin. Nine other exchanges announced similar plans after the Binance CEO’s announcement.

  • The CEO of Crypto.com (disclosure: sponsor of Unchained) dismissed insolvency rumors, but its token price is falling sharply.

  • Travis Kling, Chief Investment Officer at Ikigai, said the fund held the majority of its assets on bankrupt crypto exchange FTX.

  • Yuga Labs, the creator of the Bored Ape Yacht Club (BAYC) NFT collection, acquired Beeple’s NFT platform, Wenew, and its NFT collection, 10KTF.

  • FTX pulled the plug on its application with the CFTC to offer automated margin trading.

  • Visa shut down its debit card partnership program with FTX.

  • Prosecutors from the Department of Justice’s Southern District of New York launched a probe into the collapse of crypto exchange FTX.

  • Hbit, a crypto platform based in Hong Kong, disclosed it has $18.1 million worth of cryptocurrencies deposited in FTX.

  • A wallet that may be owned by Ethereum inventor Vitalik Buterin sold 3,000 ETH at a price of $1,254, worth $3.8 million.

  • Crypto venture capital firm Multicoin Capital has a $25 million stake in FTX via its $430 million venture fund, according to The Block. 

Today in Crypto Adoption...

  • Derivatives crypto exchange PowerTrade partnered with London-based firm Copper to offer custodial and settlement services for its institutional clients.

  • Caribbean country Saint Kitts and Nevis could adopt Bitcoin Cash (BCH) as legal tender by March next year.

  • Sports giant Nike will launch its own platform for Web3 wearables.

What Do You Meme

📈 Your Market Update 📉

  • BTC: $16,762

  • ETH: $1,258

  • BTC dominance: 36.81%

  • Crypto market cap: $874 billion

*All data as of today, 5 am ET

Recommended Reads

  1. Fortune’s Leo Schwartz on proof of reserves:

  1. CoinDesk’s Nik De on the regulatory impacts of FTX’s failure:

  1. Bloomberg’s Matt Levine on the balance sheet of FTX:

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