It has been a tumultuous week in the digital asset world: Last Thursday, FTX filed for Chapter 11 bankruptcy, and now the Wall Street Journal is reporting that FTX is still trying to raise money, while simultaneously being probed by Federal Prosecutors in New York. In the Bahamas, where the company is based, FTX is subject to a criminal probe by authorities. Bloomberg is reporting U.S. and Bahamian authorities are discussing bringing FTX CEO Sam Bankman-Fried to the U.S. for questioning.
This situation is happening in real-time, and we expect more shoes will drop. Buckle up.
Collateral damage continues to come to light as worries persist about possible contagion risk. Notable cryptoasset manager Multicoin Capital announced 10% of its assets are trapped on FTX. Hedge Fund Galois said 50% of its assets are on FTX, while fund manager Sino Global announced a ‘7-figure loss.’ BlockFi, bailed out by FTX earlier this summer, said it has ceased operations and filed for Chapter 11 bankruptcy.
Alex Tapscott joined BNN Bloomberg recently for an interview with Jon Erlichman to discuss how the unfolding FTX drama impacts digital assets and Web3. For more detail, check out Alex’s section.
Meanwhile in non-FTX news…
USDC issuer Circle Says its Customers can Now Use Apple Pay, Following Integration: “NFT marketplaces, crypto gaming, crypto exchanges, crypto wallets and cross-border remittance providers can help their business grow by making checkout easy with Apple Pay and Circle,” the company said. The announcement is another reminder of the deepening ties between digital assets and traditional finance.
Stablecoin values on the exchange have hit an all-time high of $42 billion, after one of the most significant weekly inflows on record. Meanwhile, some investors are buying the dip as passive cryptoasset funds recorded $42 million of net inflows in the past week.