Will SBF saddle up for a testimony after his media tour?
Welcome Back to Chain reaction.
It’s still a busy time in the wild, wild crypto world. It felt a lot more calm than the chaos the industry has been experiencing over the past few weeks. I am grateful to the crypto gods for this. )
If you keep up with the news cycle then you will know that FTX’s former CEO Sam Bankman Fried has been on quite a media campaign.
He has done a variety of interviews with organizations, from Good Morning America , to The block ,, and even jumped onto a few less formal Twitter spaces (with many listeners) for quick conversations. He’s been rambling and asking questions, but regulators are interested in hearing from him.
In a back-and-forth tweet exchange, the Chairwoman of the House of Financial Services Committee Maxine Waters invited SBF to join their hearing on December 13, to which, SBF basically replied “not right now.”
That didn’t bode well with the chairwoman and she came back swinging and said, “Based on your role as CEO and your media interviews over the past few weeks, it’s clear to us that the information you have thus far is sufficient for testimony.” In a separate tweet, Waters also said a subpoena is “definitely on the table.”
With a few days to the hearing, we’ll find out if SBF is available to testify, either by order or by choice. But the former seems unlikely.
An excel spreadsheet showed Alameda’s private equity portfolio, with some FTX positions. It was a huge document that left our team puzzled about how they could have time to invest considering the sheer number of deals across a few sectors. More deets below.
If someone has forwarded this message to you, you can sign up on TechCrunch’s newsletter page.
this week in web3
Here’s a list of the most important crypto stories TechCrunch covered this week.
FTX, its sister company (or parent company depending on your perspective) Alameda were involved in many startups. It was not easy to see the depth of its portfolio. A spreadsheet with Alameda’s private equity portfolio and some FTX positions includes just shy of 500 investments across 10 holding companies for a total of $5. 276 billion. This spreadsheet, which dates back to November, raises a few concerns about the amount that FTX and Alameda, and their affiliated companies, invested in the crypto industry.
Circle Internet Financial, the company behind the USDC stablecoin, has rescheduled its merger with a blank company. This ends its SPAC-led push to go public. Circle’s SPAC deal was announced last year, and it was re-priced earlier this year. Circle had renegotiated the SPAC transaction, increasing its enterprise value from $4.5 to $9 billion, according to last we heard. What happened between then-now to bring us from a higher deal price to a termination
A Seoul court denied prosecutors’ request for warrants to detain eight individuals related to Terraform Labs. This included Daniel Shin, the co-founder of Terraform Labs and early investors as well as former engineers. The court dismissed the warrants and stated that the eight defendants must have the right to defend themselves against any accusations. Shin is being charged with taking illegal profits worth about $105 million by selling Luna tokens when it was near its all-time high without disclosing this move to investors, prior to the collapse of the TerraUSD and Luna earlier this year.
Although FTX, the largest crypto exchange, has filed for bankruptcy, market participants don’t worry about whether the collapse will affect institutional interest in crypto. Grace Berkery, director for startup engagement at Mastercard, stated that once an institution has momentum, it’s difficult to get them to pivot. She spoke at an event on Wednesday. “So if they are going to enter, they will stay in the space .”
Ledger is a security-focused company that sells crypto hardware wallets. This partnership was made in the hopes of making it easier and more accessible for users to protect their crypto assets. The new credit card-sized crypto wallet can manage NFT collections as well as over 500 coins and digital assets.
the latest pod
As a reminder, Chain Reaction’s inaugural season ended last week. We’ll be bringing back new content in the New Year.
ICYMI: Last week, in Chain Reaction’s Tuesday episode, Alchemy’s CEO Nikil Viswanathan had a lot to say about how the industry and developer’s focus on infrastructure has shifted, what will drive the next wave of consumer interest and which blockchains he’s seeing the most developer activity on.
follow the money
- Tea, an open source package manager for developers, raises $8.9 million in seed funding
- NFT-focused startup Metagood raises $5 million toward “social good” impact
- Uniswap-based protocol Panoptic raises $4.5 million for decentralized perpetual options
- Crypto accounting-focused Bitwave raises $15 million in a Series A round led by Hack VC and Blockchain Capital
- Perennial, a DeFi protocol for derivative trading, raises $12 million in a seed round co-led by Polychain Capital and Variant
This list was compiled using information from Messari and TechCrunch’s reporting.
I’m a journalist who specializes in investigative reporting and writing. I have written for the New York Times and other publications.