FTX Financial News

The stunning collapses of Celsius and FTX destroyed many lives — early adopters who had the foresight to understand the unique value propositions of Bitcoin (BTC) and crypto were left with practically nothing when both platforms halted withdrawals, shuttered their doors and eventually filed for bankruptcy. While there’s still hope that creditors will be made partially whole again, the road to recouping financial losses is expected to be long. While they’re waiting, creditors are banding together to sue these firms for various alleged infractions. 

Bankrupt cryptocurrency exchange FTX’s subsidiary in Japan, FTX Japan, reportedly plans to resume withdrawals for affected users as early as February.

Former FTX CEO Sam Bankman-Fried could “conceivably” have his bail revoked after a federal judge said there was “probable cause” to believe he may have engaged in attempted witness tampering. 

The price of Bitcoin (BTC) has reached a new 2023 high of $25,000. The milestone comes after a surge in Bitcoin's price over much of January.

The two mysterious co-signers on FTX founder Sam Bankman-Fried’s bond managed to keep their identities hidden for a long time, but new court documents have finally revealed who they are.

The former dean of Stanford Law School who co-signed Sam Bankman-Fried’s bail said he considered Bankman-Fried’s parents “the truest of friends” who helped his family through a “harrowing battle with cancer.”

A federal judge has allowed identities of guarantors who signed on sureties for former FTX CEO Sam Bankman-Fried’s $250 million bond to be made public following a request from several news outlets.

Judge John Dorsey of the United States Bankruptcy Court for the District of Delaware has denied a motion appointing an independent examiner for FTX.

Insiders at the now-bankrupt crypto exchange FTX have been issued subpoenas to produce specific documents within the next day, court filings have revealed.

A former FTX executive’s foundation allegedly turned a donation of some $600,000 in FTT tokens into a whopping $150 million. And he now wants to cash out the frozen assets. 

Users of bankrupt crypto exchange FTX have reportedly taken aim at financiers who promoted the platform suggesting their efforts added an “air of legitimacy” to the now-defunct exchange, a case labeled as "tricky" by a crypto lawyer.

Silvergate Bank and its CEO Alan Lane have been accused of “aiding and abetting” a “multibillion-dollar fraudulent scheme orchestrated by Sam Bankman-Fried (SBF)” and two of his entities, FTX and Alameda Research, in a newly proposed class action lawsuit.

Polaris Ventures, a charity created by former FTX and Alameda chief of staff Ruairi Donnelly, reportedly wants to access roughly $150 million earned from insider trading on the bankrupt exchange’s tokens.

US prosecutors have expressed concern over Sam Bankman-Fried's use of a Virtual Private Network (VPN) to access the internet while under house arrest.

A New York judge has put cases against the former FTX CEO brought by the Securities and Exchange Commission and the Commodity Futures Trading Commission on hold until the criminal cases against him are concluded.

A New York judge has granted a request from prosecutors to defer civil proceedings from the Commodities Futures Trading Commision (CFTC) and the Securities Exchange Commision (SEC) until after Sam Bankman-Fried’s criminal trial in October.

Federal Reserve Governor Christopher Waller on Friday had a pair of warnings for those involved in cryptocurrency assets, telling buyers they could lose their investments, and banks that they must guard against bad actors and risks to the financial system. In recent months the cryptocurrency industry has been roiled by massive losses for investors, bankruptcies of crypto exchanges, lenders and payment platforms, and high-profile court cases including a criminal case against FTX founder Sam Bankman-Fried. U.S. regulators including the U.S. central bank have told banks they need to be more careful about fraud risk. In remarks prepared for delivery to a Global Interdependence Center conference, Waller said so far the spillover to the broader financial system has been «minimal,» and it is critical that regulators make sure to mitigate financial stability risks associated with stress in the crypto industry. At the same time, he said, banks considering engagement in cryptocurrency must meet «know your customer» and anti-money laundering requirements, and must ensure they monitor customers' business models and risk-management systems so that the bank is «not left holding the bag» if there is a crypto meltdown

FTX, a course of action that the crypto exchange has opposed as redundant and wasteful. The U.S. Department of Justice's bankruptcy watchdog has urged U.S. Bankruptcy Judge John Dorsey, who is overseeing FTX's Chapter 11, to appoint an independent examiner to investigate allegations of «fraud, dishonesty, incompetence, misconduct, and mismanagement» that are «too important to be left to an internal investigation.» Juliet Sarkessian, an attorney for the U.S. Trustee, said such an investigation is mandatory under federal law in all large bankruptcy cases where DOJ requests one. FTX has said an examiner would merely duplicate work already being done by FTX, its creditors, and law enforcement agencies.

The joint provisional liquidators of FTX Digital Markets — the firm’s subsidiary in the Bahamas — has released a report on the company’s physical assets in the island nation.

Remember when Sam Bankman-Fried admitted to being a significant donor to the Democratic and Republican parties? Well, the recipients of the tainted money have been formally requested to return the funds to FTX’s creditors. So far, we know of three prominent Democratic groups — the DNC, the Democratic Senatorial Campaign Committee and the Democratic Congressional Campaign Committee — that have returned SBF-linked donations in December 2022. Will the rest follow? 

The collapse of FTX and related developments did more to pull up or push down the price of Bitcoin (BTC) throughout Q4, compared to macroeconomic events such as rate hikes, according to research.