In a special edition of CoinMarketRecap, Connor Sephton and Molly Jane Zuckerman dive into the crisis that has engulfed FTX. We find out what led to the exchange filing for bankruptcy, the bombshell allegations against Sam Bankman-Fried and other executives, and what all of this means for the thousands of people who had funds locked up in the platform. Plus — we take a look at what will happen next as bankruptcy proceedings wind their way through the courts, and how this will affect the wider crypto sector. You can find us on Apple Podcasts, Spotify and Google Podcasts.
Binance US is preparing to make another bid for the embattled crypto lender Voyager Digital. Speaking to Bloomberg, Changpeng Zhao confirmed that his exchange is interested in a deal now FTX “is no longer able to follow through on that commitment.” Voyager Digital slid into bankruptcy over the summer and halted withdrawals after suffering losses of $650 million on a loan to the doomed hedge fund Three Arrows Capital. A “highly competitive” auction was later held for its assets — and back in September, it was confirmed that FTX had the winning bid of $1.42 billion. But the sudden collapse of FTX — which until recently had been positioning itself as a savior for stricken crypto firms — plunged this acquisition into doubt.
In other developments, Binance has announced that it is committing $2 billion to an industry recovery initiative as the bear market continues to bite, saying: “As a leading player in crypto, we understand that we have a responsibility to lead the charge when it comes to protecting consumers and rebuilding the industry.” The exchange says it has already received 150 applications from companies seeking support. Overall, it is hoped that this effort will help restore confidence in Web3 — and successful applicants will be expected to offer innovation and long-term value creation, a viable business model, and a “laser focus” to risk management. Binance, which is the parent company of CoinMarketCap, had initially pledged $1 billion to the fund — but this was doubled early on Friday.
It was only a matter of time before the implosion of FTX ended up being transformed into a TV drama. Reports suggest that Amazon has ordered an eight-episode series documenting the rise and fall of Sam Bankman-Fried’s exchange. Given how it’s a tale of billions of dollars vanishing overnight — with drugs and sex in a Bahamas penthouse thrown in — the show could end up being a gripping watch. According to Variety magazine, Joe and Anthony Russo’s production company will be tasked with bringing the story to life. A number of journalists are set to contribute reporting to ensure that the show remains accurate — and production is set to begin early next year.
The New York Times is coming under criticism after it confirmed that Sam Bankman-Fried will be speaking at its upcoming DealBook summit. On Twitter, journalist Andrew Sorkin confirmed that FTX’s embattled founder will be answering questions live at the event on Nov. 30, adding: “There are a lot of important questions to be asked and answered. Nothing is off limits.” His tweet led to a flurry of furious replies from a number of high-profile personalities. Some warned that the interview will only prove useful if it aids law enforcement in their investigation against Bankman-Fried and FTX. And others asked why SBF still had the freedom to perform interviews in the first place.
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