FTX attorney Andy Dietderich recently stated the bankrupt crypto exchange “recovered $5 billion in cash and liquid cryptocurrencies,” media reported this week.
In an 11 January statement to US bankruptcy judges in Delaware, FTX was “working to rebuild transaction history.” The collapsed exchange’s total amount of missing funds was also “still unclear,” it added.
Reports show recovered assets do not include the Bahamian Securities Commission’s seized assets from FTX. This mostly includes the exchange’s native FTT token.
He also noted FTX would sell $4.6 billion in non-strategic investments such as subsidies from its Japanese and European branches. The two segregated from FTX’s main operations.
FTX Japan previously had a sponsorship agreement with online multiplayer game League of Legends. Following the collapse, the branch pledged to return funds to affected clients.
Judge John Dorsey, who presides over the case, also approved FTX’s request to sell off FTX Europe and other branches. According to Dietderich, FTX has not committed to a sale to date.
Background on FTX Crisis
The news comes after FTX faced a massive liquidity crisis in November. This triggered a huge bank run on its FTT token and the subsequent collapse of the firm, leaving over $8 billion in liabilities.
Courts later approved FTX’s request to anonymise client names for three months after identity theft claims. Currently, US courts have organised a task force to recover the crypto funds.
The news comes after the exchange’s disgraced ex-chief executive, Sam Bankman-Fried, pleaded not guilty to all criminal charges. According to reports, the crypto exchange splurged $40 million on travel, hotels, and
Caroline Ellison, research wing Alameda Research’s ex-CEO, struck a plea deal with courts. This would drop seven of the eight charges previously faced, which totalled 110 years in prison.
Crypto exchange Zipmex has become the centre of a new Securities and Exchange Commission of Thailand (Thai SEC) investigation, reports have found.
According to Bloomberg, Thailand has been monitoring Zipmex for suspicious activities that could breach local regulations. Such restrictions apply to digital asset service providers operating in the country.
The ongoing developments between the two entities began later in 2022. On 7 September the same time, the government agency filed police reports stating Zipmax provided “incomplete” details on its compliance materials.
The organisation has set a 12 January deadline to determine whether it operates as a “digital asset fund manager without permission.” The cryptocurrency exchange could be forced to obtain permits to continue functioning in the Southeast Asian nation.
Lock Out, Crack Down on Crypto?
The news comes as Thoresen Thai Agencies PCL subsidy V Ventures aims to buy out Zipmex for roughly $100 million USD. This could potentially unlock client accounts in April this year with acquisition funds.
Financial woes hit the embattled cryptocurrency exchange on 21 July last year, forcing the firm to block access to accounts and funds. Subsequently, the firm reopened withdrawals the following day.
The incident exposed nearly $53 million USD to risk, hitting crypto lending firms Celsius and Babel Finance. This has prompted Thailand, Australia, Israel, South Korea, the United States, and others to crack down on crypto providers with tougher regulations.
Governments have voiced concerns amid the ongoing bear crypto market and collapse of now-bankrupt crypto firm FTX, sparking calls for tightened restrictions.
Internet investigator Stephen “Coffeezilla” Findeisen has received lawsuit threats due to a row on YouTube, recent tweets have found.
YouTube personality Logan Paul threatened the lawsuit in a recent video, triggering social media to erupt over the matter. Findeisen released a three-part video series accusing Paul’s CryptoZoo crypto project as a “scam,” leading to the online row.
Making Amends
In a 6 January tweet, Paul pledged to rescind a potential defamation lawsuit for Findeisen’s videos. The former later apologised for his video response to the Coffeezilla videos.
In a statement, Paul said: โIt was rash and misaligned with the trust issue at hand, so I called him today and apologized. The war is not with Coffee. In fact, Iโm grateful he brought this to light. I will be taking accountability, apologizing, and coming forward with a plan in the near future.โ
Responding to the apology, Coffeezilla replied: “I believe heโs making a 3rd response, which Iโll be delaying my video to include. Hopefully this time he takes accountability and refunds the victims of CryptoZoo. Thatโs what matters.”
Bitcoin (BTC) has begun trading around $17,000 this week following a major spike in value from events in the United States in early January.
Trading data showed the figures with the exchanges showing flash volatility due to a US economic data report from the Bureau of Labour Statistics (BLS).
This has revealed the largest rebound for the cryptocurrency since 20 December.
At the time, the BLS reported an increase of 223,000 jobs, despite interest rates tightening at the Federal Reserve. Despite the optimistic numbers, wage growth slowed to its lowest point in roughly two years.
According to TradingView’s one-day candle chart, Bitcoin fell from $17,800 USD to settle at $16,923.
A Consumer Price Index (CPI) report below 7 percent would indicate a faster drop in inflation rates, leading to monthly highs of around $19,00 according to Satoshi Flipper.
On-Chain Data Woes
Glassnode, an on-chain analytics firm, also unveiled difficulties across Bitcoin that showed a decreasing realised cap. This shows aggregate prices at the last movement of Bitcoin supply, indicating losses from BTC sales.
Checkmate, the company’s top on-chain commentator, said in a tweet,
“The 2022-23 Bitcoin Bear Market has seen the Realized cap drawdown by -18.8%, the second largest in history, and eclipsed only by the pico-bottom of the 2011 bear. Investors have weathered a total of $88 Billion in Net Realized losses.โ
Now-bankrupt cryptocurrency platform FTX spent millions of dollars on food, swanky accommodation, and flights around the world nine months before it went into administration, documents reveal.
According to court filings cited by the Business Insider report, FTX Digital Markets stumped up over $40 million USD. This took place from January to September last year, just months ahead of its collapse on 11 November.
Room and Board (of Executives)
Despite the company citing alleged “liquidity issues” for its bankruptcy, it spent over $15 million for luxury accommodation. The Albany Hotel, where disgraced chief executive Sam Bankman-Fried resided prior to his arrest, cost roughly $5.8 million of the firm’s hotel expenses.
Business Insider explained:
“In 2021, one of the Albany’s founders told Fortune that in high season, accommodation at the resort can cost as much as $60,000 per night. $3.6 million of FTX’s hotel spend went to the Grand Hyatt, a 4-star hotel where the cheapest room costs $369 a night. In March 2022, the hotel hosted the Caribbean reception for Prince William and Kate, Princess of Wales. FTX spent $28,954 at the hotel the same month”
FTX splashed out a further $3.6 million to the four-star Grand Hyatt, where Britain’s Royal Family stayed in March last year. Executives and others from the company racked up $800,000 in expenses at the five-star Rosewood Resort.
Living La Vida Loca
Also, the firm spent nearly $7 million on food and leisure, where half of the bill paid for catering. FTX staff also spent around $4 million on travel costs and $500,000 on deliveries and donated regularly to charities and organisations in the country.
The Bahamian company also provided local staff with a โfull suite of cars and gas covered for all employees [and] unlimited, full expense covered trips to any office globally,โ the report said.
Additional expenses included private flights for Amazon orders to Miami as the firm does not deliver to the island country. According to a former staff member, FTX’s lavish expenditures were “cult-like” and the business was “iconically and moronically inefficient.โ
Room Without a View
Bahamian authorities arrested Sam Bankman-Fried from his luxury accommodation in mid-December last year. He has plead not guilty in early January to eight charges, which include fraud, defrauding investors, and others. He awaits further hearings from at the US District Court in the Southern District of New York.
Caroline Ellison, the former chief executive for Alameda Research, agreed to a plea deal with courts to eliminate seven of eight counts of fraud, funds mismanagement, and other offences.
RINO, an enterprise-focused Monero Wallet, has recently launched a free Community Edition that allows everyone to benefit from some of RINOโs unique features.
The lack of professional tools and custody options has been a major obstacle to the business adoption of Monero. Other digital assets and coins have long benefited from a range of highly secure custody services offered by companies such as Bitgo, Fireblocks, and Copper. The RINO team wanted to address this shortcoming and enable the next growth phase of the Monero ecosystem. RINOโs first product is a feature-rich non-custodial wallet targeted at the enterprise. With the launch of the Community Edition, some of the core features of the RINO enterprise platform are now being offered to the wider Monero community for free.
All Monero users can now benefit from RINOโs highly secured 2FA authentication. Unlike other wallets, RINO guarantees the safety of the funds even if the wallet password is compromised.
With the Community Edition, users can access their wallets from any device. Wallets are always instantly synchronized without any waiting time upon connection. Sync happens even when users are away from their phone or laptop – they can even disconnect from their wallets completely and still receive a notification for each incoming transaction. With RINOโs integrated exchanges, one can also buy and sell XMR directly from the wallet (crypto-crypto is available now, and fiat is coming soon) at competitive rates.
RINOโs self-custody wallet is powered by multi-signature cryptography, following a 2-out-of-3 setup. The owner of a RINO wallet controls two of the three keys; the RINO platform controls the last key. Two out of three keys are needed to access funds, so RINO can never steal or spend its customersโ money. In daily use, a wallet owner uses one of their two keys to initiate transactions, with RINO acting as a controlling authority to add additional levels of security (e.g., requiring 2FA) and only co-signing transactions according to pre-agreed constraints and security policies. The last key is the owner’s โrecovery keyโ, which should be kept in cold storage. Hence, should a wallet owner ever decide to discontinue their relationship with RINO, they can spend their funds without interacting with RINO at all.
The RINO team has been involved with Monero for many years and is excited to be an integral part of Moneroโs next growth phase.
About RINO
RINO was launched by serial crypto entrepreneurs whose hearts and minds have been with Monero since its inception. Having run Monero services themselves for many years, they recognised major shortcomings in the Monero ecosystem and decided to do something about it. RINOโs mission is to bring world-class professional tools to the Monero ecosystem and enable the next phase of Moneroโs growth.
Abu Dhabi, Abu Dhabi, 11th January, 2023, Chainwire
Venom Foundation, the first Layer-1 blockchain licensed and regulated by the Abu Dhabi Global Market (ADGM), and Iceberg Capital, an ADGM regulated investment manager, officially announce that they have partnered to launch a $1 billion venture fund called Venom Ventures Fund (VVF).
The blockchain-agnostic fund will invest in innovative protocols and Web3 dApps, focusing on long-term trends such as payments, asset management, DeFi, banking services, and GameFi. It aims to become the leading supporter of the next-generation digital technologies and entrepreneurs.
Venom Ventures Fund (VVF) will leverage Iceberg Capitalโs network, expertise, and capabilities to offer incubation programs and access to an extensive industry network. Furthermore, it will assist the investee projects with marketing, exchange listing, technical, legal, and regulatory support.
The fundโs leadership team consists of some of the worldโs most experienced traditional finance and blockchain professionals; including Peter Knez, ex-CIO at BlackRock and Mustafa Kheriba, a seasoned and well-known investment professional with an impressive track record in the MENA region. Mustafa has served on the Board of Directors of several financial services and insurance companies in the Middle-east and Europe.
Operated by Iceberg Capital, the fund will be investing in projects and teams from pre-seed to Series A rounds. It will strive to accelerate the adoption of blockchain, DeFi, and Web3 while generating long-term value for investors.
Mustafa Kheriba, the Executive Chairman of Iceberg Capital, said โWe are thrilled to partner with Venom Foundation, launching their new $1 billion fund. Even though the blockchain industry is witnessing a steep correction in prices, we believe that builders will continue to build and innovate. With Venom Ventures, we will be providing financial, technical, and marketing support to the most promising teams and projects in Web3 space to help them bring their visions to life.โ
The Abu Dhabi Global Market (ADGM) is an international financial center and free zone that provides market participants with a world-class legal system and regulatory regime. Established and operated by ADGM regulated entities, Venom Ventures Fund (VVF) will be transparent and will adhere to the regulations.
Peter Knez, Chairman of Venom Ventures, said, “I am delighted to be a part of the launch of our new Venture Capital fund here in Abu Dhabi. I am excited to work with a team of experienced investment professionals and talented people from the crypto industry, and we are ready to allocate strategic investments in the most innovative web3 start-ups that are poised for mass adoption. Our mission is to transform digital asset management and make a lasting impact on the industry. Venom is the ideal platform for us to achieve this goal.”
Venom Ventures Fund (VVF) leads the $20 million funding in Nรผmi Metaverse
The fund has made its first investment, leading Nรผmi Metaverseโs $20 million funding round. Nรผmi Metaverse is a universal platform for creators, innovators, and followers. Nรผmi will launch its โVisual Novelโ in 2023, a mini-game experience with a range of special prizes for players.
Nรผmi will also launch VR metaverse by the end of this year, followed by a PC and mobile version in 2024. The Nรผmi investment showcases the fundโs investment strategy. Developers and builders working on innovative Web3 projects are invited to apply for funding through the Venom Ventures Fund website.
About Iceberg Capital
Iceberg Capital Limited is regulated by FSRA as a Prudential Category 3C investment manager based in ADGM. Iceberg Capital is a fast-growing alternative asset management company that provides diversified investment management platforms that includes direct and private equity, venture capital, technology, and virtual assets. Iceberg Capital also offers traditional asset management services such as investment portfolios in local and international markets, financial instruments (equities, ETFs, commodities, derivatives, etc), as well as specialized platforms for securities, and blockchain technology.
For more information about Iceberg Capital, visit: Website | LinkedIn
About Venom Foundation
Venom is the worldโs first regulated blockchain. The decentralized network operates under the jurisdiction of the ADGM, with a license to issue utility tokens. The ADGM is an oasis for investors and financial services firms, positioning Venom as the worldโs first compliant blockchain, affording authorities and enterprises the freedom to build, innovate, and scale.
A portfolio of in-house dApps and protocols has been developed on the Venom blockchain by various companies. It now harbors the potential to become a bridge for the adoption of CBDCs in the Middle East, North Africa, and worldwide.
For more information about Venom Ventures, visit: Website | Twitter
For more information about Venom Foundation, visit: Website | Twitter
Contact
Adam Newton
[email protected]
New York Attorney General, Letitia James, filed a lawsuit on Thursday against a former executive of bankrupt cryptocurrency lending platform Celsius.
Alex Mashinsky, the founder and ex-chief executive of the crypto platform, issued “false and misleading statements,” leading to massive losses for investors, she said in her lawsuit.
In a tweet on Friday, she said that “defrauding hardworking New Yorkers is not only shameful, it’s also illegal.”
The fraud issues have cost over 26,000 residents in New York billions in cryptocurrency investments, litigation said. It added the company failed to represent its financial health and follow regulations at the time.
She said in her statement,
โAs the former CEO of Celsius, Alex Mashinsky promised to lead investors to financial freedom but led them down a path of financial ruin. The law is clear that making false and unsubstantiated promises and misleading investors is illegal. Today, we are taking action on behalf of thousands of New Yorkers who were defrauded by Mr. Mashinsky to recoup their losses.โ
She continued: “Today, we are taking action on behalf of thousands of New Yorkers who were defrauded by Mr. Mashinsky to recoup their losses. My office will stay vigilant and ensure that bad actors trying to take advantage of New York investors are held accountable.โ
The news comes after Celsius declared Chapter 11 bankruptcy in July last year, locking scores of customers from their accounts and forcing Mashinsky to resign.
Courts issued a verbal order for Celsius to pay back its clients a total of $44 million USD, reports revealed. The company recently struck a deal with advisors and stakeholders to declare custodial accounts as the property of users and not centralised wallet holders.
New York authorities have arrested developers of a fake Mutant Ape Yacht Club non-fungible token (NFT) collection and slapped them with fraud charges.
Police arrested the developers on Wednesday last week at John F Kennedy International Airport due to charges of rug-pulling investors, leading to $2.9 million in losses.
The entire collection contained 6,797 NFTs on the Ethereum blockchain, valued at 567 Ether (ETH), but sales plummeted at the start of last year.
Comments on Rug Pull
Homeland Security Investigations (HSI) lead Special Agent, Ivan J Arvelo, said in a Department of Justice (DoJ) statement,
โAs alleged, Aurelien Michel perpetrated a โrug pullโ scheme – stealing nearly $3 million from investors for his own personal use. Purchasers of Mutant Ape Planet NFTs thought they were investing in a trendy new collectible, but they were deceived and received none of the promised benefits.โ
He added: โHSI uses our extensive experience investigating financial crime in conjunction with our cutting edge cyber capabilities to uncover fraud and bring the perpetrators to justice.โ
A further statement from Internal Revenue Service (IRS) agent Thomas Fattorusso noted that Michel had defrauded investors with false representations, “things, giveaways, tokens with staking features, and merchandise collections.”
He added that Michel withdrew all the funds after selling the NFTs.
Citing comments from Michel, he had stated on social media that he had initiated the rug pull, adding โwe never intended to rug but the community went way too toxic.โ
Following his exit from the project, a new community of content creators under the HTMadge pseudonym have aimed to resurrect the collection.
Mango Markets and Cybersecurity Concerns
The news comes after Mango Markets hacker Avraham Eisenberg tweeted his successful rug pull Mango Inu “shitcoin,” leading to roughly $117 million in lost funds.
He claimed in his Twitter feed that he “did nothing wrong” and his actions were “legal.”
He said in October last year that he had deployed coins to fight “exploiting bots” buying up the tokens. The automated programmes buy specific cryptocurrencies based on market capitalisation, availability, and other algorithmic parameters.
According to a recent CertiK report, 2023 would remain a year hit by cybersecurity risks, fraud, malicious attacks, and rug pulls. In 2022, the industry lost roughly $3.7 billion, with $595 million in November alone.
Singaporean courts subpoenaed Three Arrows Capital (3AC) founders Kyle Davies and Zhu Su on Thursday last week.
In a public tweet, 3AC Liquidation, the official court-appointed joint liquidators of the firm, published the documents on their feed at the time.
The court order shows authorities summoning Davies, a US citizen, to appear before judges to resolve concerns over the collapse of the Singaporean firm.
Liquidators for the massive company aim to receive key evidence from the company, including accounts, private keys, wallets, and seed phrases, among others. It also aims to investigate data on the firm’s securities, unregistered shares, and accounts on its exchanges.
It said that the founders should “produce at the time, date, and place set forth below the following documents, electronically stored information, or objects, and to permit inspection, copying, testing, or sampling of the material.”
The subpoena requested that Su and Davies โfurnish all documents available to you regardless of whether this information is possessed directly by you, your agents, representatives, employees, or investigators; or by any other legal or non-legal entities controlled by or in any manner presently or precisely affiliated with you.โ
The news comes after the firm filed for bankruptcy in July last year, triggering Singapore’s Monetary Authority (MAS) to crack down on cryptocurrency platforms.
The government body passed several measures to regulate digital payment token service providers (DPTSP) and stablecoin issuers. Coins affected included Bitcoin, Ethereum, and XRP, and aim to protect consumers from risk and boost stablecoin transactions.