Once the white knight of crypto, Sam Bankman-Fried now needs someone to bail him out. Illustration by Gracelynn Wan for Forbes; Photos by Saul Loeb/Getty Images.
At that juncture, FTX thought it had enough [money](https://www.forbes.com/sites/mariagraciasantillanalinares/2022/09/27/ftx-pays-14-billion-to-get-voyagers-crypto-customers/?sh=15fe5c744168) to return most of the assets to Voyager owners in hopes of retaining some of them as clients. If it turns out that FTX used them for its own purposes, including possibly lending them to Alameda, that would lift the clients in the hierarchy of who is owed money during the bankruptcy. Despite Bankman-Fried owning a 7.6% stake in the brokerage after he invested around $650 million in May, Tenev insisted there was no direct or material exposure to FTX, adding that his brokerage has seen crypto inflows increase as a result of the turmoil. “FTX was sort of the white knight in Voyager,” says Gayda. With roughly $6 billion in cash at the end of the latest quarter, Robinhood likely won’t be hurt badly even if Bankman-Fried is forced to unload his stake as part of bankruptcy proceedings. If the FTX customers, who will be treated as unsecured creditors in bankruptcy, want to be proactive, they can do more than wait to be rescued. Over 63% of the assets are stablecoins, including tether and dai, which are meant to be fully collateralized with liquid assets and thus shielded from an event like the selloff that has wiped about 20% off of crypto values in the past week. “There’s really a crisis of confidence with respect to customers in the crypto industry,” says Gayda. Investors should “brace themselves for contagion from FTX’s bankruptcy,” Anto Paroian, CEO of crypto hedge fund ARK36, said in emailed comments. Valued at $32 billion in its latest funding round, FTX’s worth has crashed in the span of one week. The main option for FTX customers to recoup at least some of their holdings, says Robert Gayda, partner at Seward & Kissel corporate restructuring and bankruptcy group, is for a “Voyager-style sale” of any remaining crypto assets. Assets still under the company’s control would be put up for sale to the highest bidder.
Various Ethereum tokens, as well as the Solana and Binance Smart Chain tokens, have left FTX's official wallets and transferred to decentralized exchanges like ...
FTX US General Counsel Ryne Miller said the crypto exchange moved funds following a series of "unauthorized transactions.".
Collapsed crypto exchange FTX said on Saturday it had seen "unauthorized transactions", with analysts saying millions of dollars worth of assets had been ...
One of the world's biggest cryptocurrency exchanges, Futures Exchange (FTX), has filed for bankruptcy, as the wealth of the founder, Sam Bankman-Fried, |
Admins of the Telegram FTX community stated that the platform had been hacked and all of the funds of the exchange seemed to be gone.
[Bitcoin.com](https://bitcoin.com) does not provide investment, tax, legal, or accounting advice. More than 30 million [USDT](https://markets.bitcoin.com/crypto/USDT) were involved in this move. Nansen’s Martin Lee [observed](https://twitter.com/themlpx/status/1591330183541575680?s=20&t=No2ZdkCX4I_sn0JtG1gmYA) “massive withdrawals to the same wallet,” something that the exchange had not informed about before. Tell us in the comments section below. “In a subsequent examination, FTX legal and finance teams also learned that Mr Bankman-Fried implemented what the two people described as a ‘backdoor’ in FTX’s book-keeping system, which was built using bespoke software,” Reuters reported. The exchange had Investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges – unclear facts as other movements not clear. An admin of the now-closed Telegram group of the FTX community announced that the exchange was the victim of a hack attempt on Nov. While FTX’s regular communication channels have been silent on the issue, Ryne Miller, FTX U.S. General Counsel, reported being looking at these transactions earlier in the evening. FTX has been hacked. FTX U.S.
In a week of turbulence, cryptocurrencies maintain this sentiment into the weekend, with both bitcoin and ethereum moving lower.
“We have indeed seen a real black swan event, the FTX bankruptcy,” it said. “The history of BTC is lined with such events and the market will recover from it as ...
By putting off demands from cryptocurrency entrepreneurs and Wall Street, Washington protected the financial system.
Cryptocurrency exchange FTX, which filed for bankruptcy Friday, is investigating whether crypto assets were stolen and has moved all its digital assets ...
We'll send you a myFT Daily Digest email rounding up the latest FTX Trading Ltd news every morning. Sam Bankman-Fried's main international FTX exchange held ...
Reuters reports that at least $1 billion worth of customer funds have vanished from the failed crypto exchange.
FTX-affiliated crypto trading firm Alameda Research's Chief Executive Officer Caroline Ellison and senior FTX officials knew that the crypto exchange had ...
More than $500 million appears to be missing from the crypto currency exchange, following a bankruptcy filing Friday.
Ray said FTX and FTX US are making “every effort to secure all assets, wherever located.”
Hundreds of millions of dollars in assets were mysteriously siphoned out of the collapsing crypto exchange FTX on Friday, in what exchange officials have ...
[reported](https://www.reuters.com/markets/currencies/exclusive-least-1-billion-client-funds-missing-failed-crypto-firm-ftx-sources-2022-11-12/) Saturday that, of some $10 billion in customer funds that Bankman-Fried previously transferred from FTX to his own company, Alameda Research, at least a billion dollars is said to have vanished into thin air. Some theorized that a small group of FTX CEO Sam Bankman-Fried’s “insiders” were behind the apparent theft. The firm’s CEO, Bankman-Fried, stepped down from his leadership position on Friday, amidst revelations that the company had been using customer’s money to fund its own risky trading activities and the company was insolvent. [said that](https://hub.elliptic.co/analysis/515-million-moved-out-of-ftx-in-suspected-theft/) it had recorded more than $701 million in various tokens leaving the crypto exchange’s coffers on Friday night. The chaos started late Friday when FTX account holders began taking to Twitter to allege that their funds had disappeared. Subsequent analysis seemed to suggest that as much as half a billion dollars may have been stolen.
Plaid however said that there is “currently no indication that Plaid has been used as a vector for fraudulent activity."
Collapsed cryptocurrency trading firm FTX confirmed there was “unauthorized access” to its accounts, hours after the company filed for Chapter 11 bankruptcy ...
But it would be unusual for that to happen on a Friday night, said Molly White, cryptocurrency researcher and fellow with the Library Innovation Lab at Harvard University. “And that is just tragic, really.” Politicians and regulators are calling for stricter oversight of the unwieldy industry. Until recently, FTX was one of the world’s largest cryptocurrency exchanges. Another $186 million was moved out of FTX’s accounts, but that may have been FTX moving assets to storage, said Elliptic’s co-founder and chief scientist Tom Robinson. FTX is also coordinating with law enforcement and regulators, the company said.
The news was shared by FTX US's general counsel Ryne Miller and retweeted by FTX's official Twitter account.
Despite Flightradar24’s flight tracking report, SBF [told](https://www.reuters.com/technology/ftx-founder-bankman-fried-says-he-is-bahamas-2022-11-12/) Reuters by text that he was still in the Bahamas and did not go to Argentina. Additionally, amid the unauthorized transactions and the team moving the funds to new cold wallets, there was speculation surrounding Sam Bankman-Fried’s (SBF) As widely reported, unauthorized access to certain assets has occurred,” the FTX US general counsel said. The news follows FTX filing for bankruptcy, the day prior on Nov. [reports](https://news.bitcoin.com/ftx-reportedly-hacked-as-telegram-group-admin-comments-on-possible-malware-present-in-apps-irregular-fund-movements-registered-onchain/) had shown that FTX wallets were being drained. “Among other things, we are in the process of removing trading and withdrawal functionality and moving as many digital assets as can be identified to a new cold wallet custodian.