‘Tis the season for more FTX charges
Welcome back Chain Reaction.
It’s the season to be joyful and review your crypto portfolio before you buy holiday gifts for your loved ones and friends. It’s also the season for additional FTX charges, and SBF’s extradition…
The FTX collapse has seen more as Gary Wang, its co-founder, and former CTO, and Caroline Ellison (ex-CEO of Alameda Research), have fallen. I have pleaded guilty U.S. Attorney Damian Williams stated Wednesday that they were being investigated for their involvement in the demise of the crypto exchange. Williams said that Ellison and Wang are cooperating in the investigation.
In similar news, Sam, former CEO of FTX, was arrested in the Bahamas nine days after being charged with a few criminal offenses by the Securities and Exchange Commission and the Commodity Futures Trading Commission. Bankman-Fried is returning to the United States To face them.
Bankman-Fried brought his own plane home to the U.S., and is expected to be arraigned at the Federal District Court in Manhattan. It is not yet clear where he will be held in the States, but I am pretty certain it won’t cost as much as the $40 million he paid for the Bahamas. But, who’s to complain?
Yuga Labs, the creator of the blue-chip NFT project Bored Ape Yacht Club and Activision Blizzard COO, is shaking things up in NFT. Daniel Alegre, its new CEO. Nicole Muniz, the current CEO, will continue to serve as a strategic advisor.
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This week in web3
Here are the top crypto stories TechCrunch covered this week.
Voyager Digital has had a difficult year. The crypto lender filed for bankruptcy and thought it would be able return some funds to customers by selling its assets. Things have not been going well at FTX, as you may know. Binance.US has offered to buy Voyager Digital assets for $1.022 million.
Blockchain games have seen a tremendous increase in popularity over the past year, offering a fresh and innovative alternative to traditional gaming. Although the two markets have been separated for a long time, some market players see a future where they can be integrated. TechCrunch was told by Chris Akhavan (chief gaming officer at NFT marketplace Magic Eden) that big gaming companies were once too focused on mobile gaming and started buying smaller games to compete. Akhavan said, “We believe that the same journey will happen in web3.”
On Wednesday, the governor of the Indian central bank said that it is not at war against crypto but warned that private cryptocurrency will lead to the next financial crisis unless it is banned. Shaktikanta Das, Governor of RBI, told a packed room of banking executives and lawmakers that crypto poses a significant risk to the country’s macroeconomic stability. “After the developments of the last year, including the latest episode around FTX, we don’t need to say any more. Time has shown that crypto is worth the price it is today.
The world is becoming more digital and consumers’ needs are changing. NFTs could be a major part of the future of rewards programs for brands, Adam Brotman, cofounder of Forum3, told TechCrunch. “We’re hearing from many other brands, regardless of whether they have loyalty programs or not, that what all major brands are dealing with right now it that the consumer is evolving,” Brotman, who was also the former chief digital officer at Starbucks, said. “It’s not just Gen Z and millennials that are hyperdigitalized, but the general consumer has become more digitally savvy and more appreciative for digital goods.
Global audit firm Mazars has removed the website hosting proofs-of reserve work for cryptocurrency exchanges. Bloomberg was informed by the company that it will cease working with crypto companies in the future on proofs of reserve reports. Kucoin and Crypto.com are two of the clients of the audit firm. Binance was the most prominent client.
The latest pod
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Follow the money
- Firm that trades in crypto Amber raises $300 millionIt seeks to protect FTX-hit customers
- Revel raises $7.8 millionTo become the Robinhood and Instagram of NFT platforms
- Foundation raises $7 millionTo restore’sovereignty’ to a chaotic crypto-world
- Bitcoin development firm Layer 2 Labs Fundraise of $3 million in seed round
- Arrakis Finance raises $4 million for its decentralized market making infrastructure
This list was compiled using information from Messari and TechCrunch’s own reporting.
I’m a journalist who specializes in investigative reporting and writing. I have written for the New York Times and other publications.