FTX Latest: Crypto Prices Still Under Pressure as Billions Owed – HT Tech

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Cryptocurrency prices struggled Monday in the ongoing crisis sparked by the downfall of Sam Bankman-Fried’s once-powerful FTX empire. The largest token Bitcoin has shed about 4% over two days, while second-ranked Ether is roughly 7% lower.
Crypto exchange FTX and related companies now in bankruptcy collectively had a carryover federal net operating loss of at least $3.7 billion as of Dec. 31 last year based on tax returns, according to court filings.
FTX owes its 50 top unsecured creditors a total of $3.1 billion. FTX Trading Ltd. and about 100 affiliated companies are starting a strategic review of global assets.
FTX’s Federal Net Operating Loss Carryover Stood at $3.7 Billion (2:32 a.m.)
Crypto exchange FTX and related companies now in bankruptcy collectively had a carryover federal net operating loss of at least $3.7 billion as of Dec. 31 last year based on tax returns, according to court filings.
The document from Alvarez & Marsal North America LLC, released as part of the Chapter 11 process, also showed that the minimum state net operating loss carryforward stood at $715 million. Earlier filings signaled the losses could help offset tax liabilities. 
Crypto Arb Trades Roar Back as FTX-Battered Quants Flee Market (2:24 a.m.)
The wild-west days of crypto markets are back again as the large trading houses that once thrived on arbitraging price gaps pull back in the wake of FTX’s collapse. That’s opening up profitable opportunities for anyone that still dares to trade. 
Prices for essentially identical assets on various platforms are diverging in a clear sign the dominoes are still falling across the crypto trading world. The gap between the funding rates of identical Bitcoin futures on Binance and OKEx, for instance, has been as wide as an annualized 101 percentage points and remained at least 10, compared to mostly single-digit gaps last month. 
Crypto Markets Sag as Funds Switch Out of Ether (12:02 p.m. HK)
Cryptocurrency prices struggled Monday in the ongoing crisis sparked by the downfall of Bankman-Fried’s once powerful FTX empire.
The largest token Bitcoin has shed about 4% over two days, while second-ranked Ether is roughly 7% lower. Meme token Dogecoin — an arbiter of the most speculative animus in an already racy digital playground — is down 11%.
Ballet’s Lee Says Need to Get Past ‘Amateurs’ in Digital-Asset Sector (11:45 a.m. HK)
Bobby Lee, CEO and founder of crypto storage provider Ballet Global, said in an interview that “bad actors” that are poorly run need to be “flushed out” in order to restore faith in crypto. He added that “we’ve got to get past this early stage of amateurs in crypto.”
Lee said the latest troubles in virtual coins will set back the industry by a year or two. He predicted that Bitcoin could fall as low as $10,000 if crypto markets are hit by more major blowups.
Bill Ackman Says He’s Invested in Crypto (6:25 a.m. HK)
The Pershing Square CEO said in tweets laying out his thoughts on the crypto industry that he has small investments in a number of crypto projects, including VC funds and firms that help with compliance or reducing fraud in the industry. The crypto investments represent less than 2% of his assets, he added. 
Ackman said that he remained positive on crypto overall despite the recent troubles, comparing its future potential impact on the economy and society to that of the telephone and internet.
Celsius Was Lax With Crypto Custody, Examiner Finds (12:46 a.m. HK)
A new report on the bankrupt crypto lender details shortfalls in controls and operations at two of the company’s product offerings.
The programs, Custody and Withhold, allowed users to keep their digital coins in the lender while supposedly maintaining ownership of them. The programs’ users have been claiming that they shouldn’t be lumped together with other unsecured creditors and should be reimbursed in full. 
Examiner Shoba Pillay found that Celsius launched the Custody program “without sufficient accounting and operational controls or technical infrastructure.” As a result, Custody wallets were overfunded through June 10, but then became underfunded by $50.5 million — a 24% shortfall — by June 24.
Buterin: FTX Offers Lessons for Crypto (11:00 p.m. HK)
Despite the recent upheaval, Ethereum co-founder Vitalik Buterin said blockchain base layers and decentralized-finance protocols worked “flawlessly.” 
“What happened at FTX was of course a huge tragedy,” he told Bloomberg. “That said, many in the Ethereum community also see the situation as a validation of things they believed in all along: centralized anything is by default suspect.”
FTX Owes 50 Biggest Unsecured Creditors More Than $3 Billion (10:42 pm HK)
Bankman-Fried’s bankrupt crypto empire owes its 50 biggest unsecured creditors a total of $3.1 billion, court papers show. FTX-linked entities owe their single biggest unsecured creditor more than $226 million, according to a redacted list in court papers filed late Saturday. 
All of them were listed as customers and 10 have claims of more than $100 million each, the filings show. The 50 largest claims are all from customers owed $21 million or more.
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