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$1Billion Customer Funds at FTX Disappeared, Binance Abandons Rescue Plan | Cointime Weekly Nov.6 – Nov.11

Lu Tian· 4 min read

Top stories

Farewell to FTX

FTX and Alameda file for bankruptcy in wake of failed Binance Acquistion, Sam Bankman-Fried lost billionaire status and his control of this crypto exchange giant. This historic moment once again proved “Crypto is Not Too Big To Fail”. 

Over $400M Tokens FTX Funds Drained, $1 Billion of Client Funds Missing

So far, over $400 million worth of token has been transferred to a single wallet address. At least $1 billion in customer funds at the exchange disappeared last weekend

FTX and Alameda File for Chapter 11 Bankruptcy in US, CEO SBF Resigns

Roughly 130 companies in FTX Group — including FTX Trading, FTX US, under West Realm Shires Services, and Alameda Research — had started proceedings to file for bankruptcy in the United States. Bankman-Fried has also resigned, John Ray III is now in charge of the debt-ridden exchange as its new CEO

TRX Momentarily Surges 4,000% on FTX Amid 1:1 FTX Redemption of Tron-Based Tokens

Tron network’s native TRX token momentarily surged some 4,000%, from 6 cents to $2.50, on FTX even though they are trading for 6 cents on other prominent exchanges, such as Binance and OKX. This followed on Sun’s tweet: “We will do everything we can to protect our users, including exchange all #TRX, #BTT, #JST, #SUN, #HT on the FTX platform at a 1:1 ratio”.

Binance Abandons Rescue of FTX One Day After Announcing Takeover Bid

Binance, the world’s largest crypto exchange, has backed out of its agreement to purchase FTX just one day after signing an agreement to rescue the company on Tuesday. Binance said its decision was made in light of a review of FTX’s handling of customer deposits, alongside alleged US agency investigations against the firm.

Social giants step forward Blockchain

Facebook Blowing Billions on the Metaverse, and Laying Off 11,000 People

Since the start of 2021, Meta has spent $15 billion to make virtual and augmented reality mainstream with little success. It’s planning to begin large-scale layoffs this week that will affect thousands of employees

Twitter Registers as Payments Biz as Post-Musk Dogecoin Gains Are Erased

Twitter registered as a money services business on Nov. 3, according to FinCEN data. FinCEN defines a money transmitter as a person or organization providing money transmission services or any other person who transfers funds.

Crypto weekly price action

In this week, cryptocurrency prices faced staggering losses. Bitcoin is down 25% since Sunday and closing in on two-year lows, while Ethereum tumbled 32% to its lowest level since June. Bitcoin fell below $16,700 on Friday after FTX announced it filed for bankruptcy.

Cryptocurrency Prices Heat Map in 7 Days, Source COIN360

Fundraising and investment

Japan’s Largest Telecom Company NTT to Invest $4 Billion in Web3

The leading Japanese mobile phone operator – NTT Docomo – joined forces with Accenture to invest between 500 and 600 billion yen (up to $4 billion) in the next iteration of Internet technology – Web3. The partners will also provide training courses for those interested in the field, including business leaders and engineers.

Genesis: Trading Firm to Get $140 Million Equity Infusion from DCG

Digital Currency Group (DCG), the parent company of crypto trading firm Genesis, is stepping in to provide a $140 million equity infusion to Genesis after it said that its derivatives business had $175 million locked up on the FTX platform.

Ramp: Web3 Infrastructure Startup Raises $70m Funding

Ramp, a UK-based startup offering payment infrastructure, has raised $70 million in a Series B round co-led by Mubadala Capital and Korelya Capital.

Thoma Bravo: Leads $70 million Series B extension into TRM Labs

Private equity firm Thoma Bravo has led a $70 million Series B extension into TRM Labs. Through this funding round, the company is looking to build out tools for helping law enforcement fight crypto-related financial crime.

Research and technology

Explore Web 3.0 Through the Lens of Blockchain

Why is Web3 vital? What are the big impacts and limitations of Web 3.0? Let’s take a deep dive.

What Is Arbitrum and Why Do We Need It?

What is Arbitrum’s feature and what is Optimistic Rollups? How does Arbitrum work? What does the Arbitrum system include? How is Arbitrum evolving? Here are the answers.

I Analyzed 120 Crypto Hacks. Here Is What I Learned

If you own a cryptocurrency that just got hacked — sell it. If you are considering buying a cryptocurrency after it got hacked, you should probably look for a better alternative.

Viral Quotes

“FTX going down is not good for anyone in the industry. Do not view it as a win for us.”

—     Changpeng Zhao, CEO of Binance

“MtGox 'looked' sketchy and never tried too hard to whitewash itself. Luna too. FTX was the opposite and did full-on compliance virtue signaling (not the same thing as compliance). The second kind of fraud cuts deeper than the first.”

—     Vitalik Buterin, Ethereum co-founder

“I have zero sympathy for SBF & am going to enjoy sending him to prison.”

—     Ben Armstrong, Crypto influencer

“A poor internal labeling of cookie-related jars meant that I was substantially off on my sense of my parents' margin.”

—     Edward Snowden, former U.S. intelligence contractor, called SBF “Child with a face covered in crumbs”

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