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In its ongoing attempts to reimburse creditors, bankrupt crypto exchange FTX seeks a judicial green light to offload its roughly 8% stake in AI firm Anthropic. On Feb. 3, FTX filed a motion in the U.S. Bankruptcy Court for the District of Delaware, asking the court to approve the sale of the failed exchange’s 8% equity stake in Anthropic. Looks like FTX is looking to sell their Anthropic equity and should get around $1.5B for it. If there was any questions on creditor being made whole (at petition date prices) before, this should clear all doubts. pic.twitter.com/dyyohrSOkZ — G3 (@g3_capital) February 3, 2024 Underscoring the urgency of the matter, the company also filed a second motion seeking to expedite the deliberation period for the first motion with the hope that it can get a hearing by Feb. 22. Anthropic is a Delaware public benefit corporation working on large language models similar to GPT-3. Its $18 billion valuation in December 2023 means that FTX’s 8% stake ...

A group of FTX creditors has filed an adversary lawsuit in response to the bankrupt crypto exchange’s payout plans, seeking to establish that deposits are their property rather than FTX’s. FTX’s proposed plan would see creditors repaid based on November 2022 prices of digital assets — far below what they are now. Bitcoin, for example, is worth $42,708 at press time but was worth 60% less in November 2022 at just $16,871. Despite complaints by creditor s over these huge price changes, in an omnibus reply filed on Monday, FTX argued that bankruptcy law requires digital asset repayment price s to be determined based on when a firm filed for bankruptcy (November 2022). However, FTX also acknowledged that the court has not established that creditors’ digital assets are in fact under its possession. Creditors Sunil Kavuri, Ahmed Abd-El-Razek Noia Capital SARL, and Pat Rabitte believe that digital assets constitute creditor property rather than the propert...

Former Alameda Research CEO John Samuel ‘Sam’ Trabucco resigned before the collapse of Sam Bankman-Fried’s FTX , yet no one seems to know where he is. Trabucco made at least $25 million from FTX via Alameda Research before opting for a curiously-timed “early retirement” in mid-2021. This is according to founder Bankman-Fried. When Trabucco resigned from Alameda, Caroline Ellison took over as head of the trading firm. Years later, the world would learn how under Trabucco’s, Ellison’s, and Bankman-Fried’s leadership, Alameda borrowed but never repaid billions of dollars from FTX customers. Understandably, defrauded FTX customers find it hard to believe that Trabucco was somehow unaware or not responsible for actions that precipitated parts of the downfall of FTX and Alameda. According to a jury verdict and a guilty plea, Bankman-Fried and Ellison are guilty of US financial crimes and have additional financial liabilities from ongoing civil litigation. Yet Trabucco hasn...

The FTX Bankruptcy is seeking to recover assets worth about $1 billion. The lawsuit will be heard by a Delaware Court. The funds in question were allegedly withdrawn from FTX. FTX’s bankruptcy advisers have recently initiated legal action against Bybit Fintech and its affiliated companies, including Bybit’s investment arm, Mirana Corp. The lawsuit, filed in a Delaware court, aims to recover approximately $953 million in cash and digital assets that were allegedly withdrawn from FTX just before its Chapter 11 bankruptcy filing a year ago. Charges against Mirana Corp. The lawsuit alleges that Mirana Corp. enjoyed special “VIP” benefits not available to regular FTX customers, exploiting these privileges to withdraw a substantial portion of assets from FTX . Mirana is accused of exerting pressure on FTX employees to fulfil its withdrawal requests while other customers faced delays accessing their funds as the exchange approached coll...

Sam Bankman-Fried set to testify in FTX fraud trial. Prior statements BY SBF are under scrutiny as he testifies under oath. Key testimonies accuse him of fund misappropriation. Former FTX CEO Sam Bankman-Fried (SBF) is today scheduled to testify in the ongoing criminal FTX fraud trial. SBF is facing allegations of misusing customer and investor funds to over $8 billion, leading to FTX’s Chapter 11 filing in November 2022. As the trial unfolds, the spotlight is now on Sam Bankman-Fried as he prepares to take the stand to defend himself against the serious allegations brought against him. His testimony comes after a series of developments in the trial, including the testimony of former colleagues and insiders who have accused him of directing actions that led to the alleged misappropriation of funds. What Bankman-Fried has previously stated In the wake of FTX ’s collapse, Bankman-Fried sought to explain the situation to the public, contending that...

On the 10th day of Sam Bankman-Fried’s historic trial , Nishad Singh reveals how events up to the bankruptcy unfolded.  As FTX founder Sam Bankman-Fried’s trial reaches its 10th day, former Senior Engineer Nishad Singh is cross-examined by the defense. Yesterday, Singh testified how the former FTX CEO spent lavishly and made several large-scale investments from the platform’s funds.  As the case resumes today, here are the top highlights:  Cross-examination of Nishad Singh Nishad Singh participated in assessing Anthropic before FTX made the investment. Singh wanted to make a separate investment or donation to Anthropic. Singh received up to $2 million in bonuses from FTX and also borrowed $477 million. The reason for the loan was to make donations to a charity, but that never happened. He never received cash for that loan, it was only on paper. Read more: SBF trial day 10: Judge Kaplan hints at early November conclusion Singh received a separate $10 mil...

The second week of Sam Bankman-Fried’s criminal trial for fraud concluded with witness testimony from Zac Prince, whose crypto lending firm BlockFi loaned $1.1 billion to Alameda before FTX’s collapse. From Alameda’s bizarre $65 billion “credit line” on FTX customer crypto to $100 million Chinese bribes, SBF gave the orders according to ex-staffers and members of Bankman-Fried’s inner circle. SBF shared far-off hopes of starting a new company as Ellison admitted FTX and Alameda’s fraud to almost 30 team members, one of whom recorded the whole affair and would eventually submit the audio clip as evidence to federal prosecutors, per InnerCityPress. With at least two government witnesses to go by trial day eight, CEO of crypto lender BlockFi Zac Prince resumed his testimony. On day seven of proceedings, Prince said BlockFi loaned $800 million to Alameda and went bust when Bankman-Fried’s crypto empire tumbled. CRYPTO CREEPS: In Bankman-Fried Trial "All Hands" Meeting Aud...

With the much-anticipated trial of Sam Bankman-Fried, founder and former CEO of FTX, set to commence today, here are all the key facts you need to know.  The long-awaited trial of Sam Bankman-Fried, the former CEO of bankrupt exchange FTX, is set to begin today. On Tuesday, Oct. 3, the trial will officially commence with jury selection at a federal court in lower Manhattan (Daniel Patrick Moynihan Courthouse at 500 Pearl Street). With this, the 31-year-old has a final chance to share his side of the story, as many of his former colleagues and associates have already pled guilty to several charges of fraud and money laundering.  The FTX case has arguably been one of the biggest scandals in the crypto world and even one of the biggest cases of financial fraud in U.S. history. So, as this historic trial begins, let’s briefly look at the key facts, the charges, and the potential sentencing for SBF.  The Three Unique Reasons Why Sam Bankman-Fried Will Likely Be Conv...

The FTX collapse took the finance world by storm, both crypto and otherwise. The second largest cryptocurrency exchange was trusted and believed to be robust. No one expected the Bahamas-based firm to be as ill-managed as it turned out. The contagion from the collapse continues to impact the market. A complete Analysis of the damage will take due time. This Wednesday, the Economic Affairs Committee of the European Parliament will hold a hearing on the FTX collapse. JUST IN: European Parliament to hold a hearing on Wednesday regarding FTX collapse. — Watcher.Guru (@WatcherGuru) November 28, 2022 Nonetheless, European authorities seem to have had their doubts before the situation unfolded. Luis de Guindos, vice president of the European Central Bank, told reporters earlier this month that the decline of FTX was “not a surprise.” According to Guindos, the exchange’s dissolution did not have a significant impact on the larger financial markets. ...

Advisers hired by FTX are looking to recoup some of the money the exchange paid to several sports stars for partnerships and endorsements. Alvarez & Marsal, financial advisers for Sam Bankman-Fried’s failed crypto exchange FTX, are reportedly probing whether millions of dollars paid to celebrity athletes, including tennis star Naomi Osaka and four-time NBA champion Shaquille O’Neal, can be recovered. FTX Group advisers have analyzed if certain payments dished out to athletes before the company unraveled last November can be recovered in Chapter 11 https://t.co/uvmFJG5jXR — Bloomberg Crypto (@crypto) September 8, 2023 In a recent court filing, the company disclosed that it had reviewed several payments made to individual athletes, Major League Baseball (MLB), and Formula 1 racing teams to determine if they were subject to Chapter 11 rules that would allow FTX to reverse them. The advisers hope the funds may be used to offset claims made by the bankrupt exchange’s ...

The letter revealed that on January 15, 2023, the defendant reached out to the current General Counsel of FTX U.S., who could potentially serve as a witness in the trial. In a letter to Judge Lewis Kaplan, the United States Department of Justice (DOJ) sought the revocation of Sam Bankman-Fried's (SBF) bail, accusing him of attempting to tamper with witnesses, including leaking his ex-girlfriend's diary entries to the New York Times (NYT). These actions, connected to the FTX case, have raised concerns about witness interference. In the letter dated July 28, the DOJ noted that SBF was released on a bond on December 22, 2022, but later requested multiple bail modifications. The letter revealed that on January 15, 2023, the defendant reached out to the current General Counsel of FTX U.S., who could potentially serve as a witness in the trial. According to allegations, SBF purportedly reached out to the FTX U.S. lawyer through the encrypted messaging application Signal and email...

In a release on Friday, Russian news outlet Interfax shared updates regarding the nation’s largest bank, Sberbank’s forthcoming DeFi platform. Russia’s leading financial entity is reportedly making steady progress as it approaches its project’s launch date. According to Konstantin Klimenko, Product Director of the Blockchain Laboratory of Sberbank, open testing should kick off by March.  SberBank’s DeFi System to Replace its TradFi Systems At the moment, Sberbank’s platform is undergoing private beta testing. However, Klimenko set a tentative deadline for the product release in May of this year. As April draws to a close, the director claimed, the product should be fully open. Should Klimenko’s words stand true,  users will be able to conduct the first commercial operations by then. The product director also shared Sber’s expectations for the platform to become Russia’s foremost DeFi ecosystem. It is also their plan to put the nation’s DeFi ecosystem in the lead globally. ...

The fast-paced nature of the crypto markets means investors are under massive pressure to quickly verify whether a video message is authentic or not. Crypto investors have been urged to keep their eyes peeled for "deepfake" crypto scams to come, with the digital-doppelganger technology continuing to advance, making it harder for viewers to separate fact from fiction.  David Schwed, the COO of blockchain security firm Halborn told Cointelegraph that the crypto industry is more “susceptible” to deepfakes than ever because “time is of the essence in making decisions” which results in less time to verify the veracity of a video. Cast your vote now! Deepfakes use deep learning artificial intelligence (AI) to create highly realistic digital content by manipulating and altering original media, such as swapping faces in videos, photos, and audio, according to technical writer at OpenZeppelin Vlad Estoup. Estoup noted that crypto scammers often use deepfake technology to creat fake ...

As the FTX saga persists, more revelations pertaining to the crypto firm have been coming to light . With Sam Bankman-Fried under house arrest, details regarding how user funds were utilized throughout last year were surfacing. Court filings have pointed out that millions of dollars were spent on food, travel, and accommodation. SBF’s fallen empire reportedly devoured $40 million between January and September 2022. JUST IN: FTX spent $40 million on hotels, flights, and food in 2022, court filing reveals. — Watcher.Guru (@WatcherGuru) January 9, 2023 According to recent reports, $15 million of the aforementioned $40 million was spent on luxury hotel s as well as accommodation. An astounding $5.8 million was paid to a single resort, the Albany hotel . This was the same resort where SBF’s $30 million penthouse was located. It should be noted that SBF was arrested on the same property. This wasn’t all. The Grand Hyatt, a four-star hotel that...

The former FTX CEO denied moving the funds saying; "I'm not and couldn't be moving any of those funds; I don't have access to them anymore.” Sam Bankman-Fried, the former CEO of the now-defunct FTX exchange, has denied moving funds tied to Alameda wallets, days after he was released on a $250 million bond. On Dec. 30, Fried tweeted to his 1.1 million followers, denying any involvement in the movement of funds from Alameda wallet s.  In response to the allegations that he may have been responsible for moving funds out of Alameda wallet s, he shared: “None of these are me. I'm not and couldn't be moving any of those funds ; I don't have access to them anymore.” None of these are me. I'm not and couldn't be moving any of those funds; I don't have access to them anymore.https://t.co/5Gkin30Ny5 — SBF (@SBF_FTX) December 30, 2022 SBF’s tweet was in response to a news story published by Cointelegraph, which reported that a wallet address that...

Here’s a list of the 12 individuals who had the most impact — for better or worse — on the crypto industry this past year. From an outside perspective, 2022 has been a rollercoaster ride for crypto. The market reached a total valuation of $3 trillion during the bull market of 2021, only to scale back to its current level of around $810 billion. While this poor performance can be partly attributed to the pervading macroeconomic environment — compounded by rising inflation rates and the ongoing Ukraine-Russia conflict, among other factors — one cannot deny the role that the recent slew of insolvencies has had on the sector.  That said, below is a list of arguably the most notable heroes and villains who have undeniably impacted this rapidly evolving industry over the past year. The heroes Changpeng Zhao At a time when some of the biggest players in crypto crumbled, Changpeng Zhao, also known as “CZ,” ensured that his Binance crypto exchange held its own, even playing a role in the col...

Cryptocurrency market capitulation revolves around investors' fears of further losses in a seemingly never-ending downward spiral, but it's also the period of maximum opportunity. Capitulation literally means concede. In the financial sphere, this term reflects a period of aggressive selling when the last of the bulls concede defeat to become bears themselves. What is crypto market capitulation? Suppose a crypto currency drops 30% overnight. An investor is left with two options: they can continue to hold or sell to realize the losses. There would be sharp decline in price if most investors decide to realize their losses. In addition, this selling pressure could produce a price bottom as the bears eventually run out of coins to sell.  But while it's very difficult to predict and identify capitulation, there are a few recurring market signals that can help traders prepare for such an event. A crypto market capitulation will typically include most of these condition: Rapid p...