Customers who trusted crypto giant FTX may be left with nothing
As the dust settles from one of the most shocking financial implosions in history, one of the key unknowns is how much customers who can’t access their money expect to get back from FTX, the crypto exchange that filed for bankruptcy last week.
The answer, according to legal experts, may be zero.
Before its unraveling, FTX.com marketed itself as a safe-for-beginners destination for buying and selling cryptocurrencies. But a liquidity crunch last week forced FTX to halt withdrawals, leaving customers and investors in limbo. FTX reportedly used customer funds to prop up its sister hedge fund’s high-risk trading operation without permission, according to the Wall Street Journal.
On Friday, FTX and the hedge fund, Alameda Research, filed for bankruptcy.
Federal prosecutors in New York are now investigating the exchange’s collapse, a person familiar with the matter told CNN. And authorities in the Bahamas, where FTX is based, launched a criminal probe into the firm over the weekend.
Wallet Linked to Vitalik Buterin Sells Off $3.75 Million in Ethereum
UPDATE: This story has been updated to note that Evan Van Ness, a prominent developer in the Ethereum community, said Vitalik Buterin told him the wallet in question is not his. Decrypt has tried to reach Buterin directly for independent confirmation.
A wallet believed to be controlled by Ethereum co-founder Vitalik Buterin sold 3,000 ETH over the weekend, converting the cryptocurrency into U.S. Dollar-backed stablecoins via the decentralized exchange Uniswap.
The moves were made in the middle of the night early Saturday morning, less than 24 hours after news broke that FTX and its affiliated entities had filed for Chapter 11 bankruptcy in the U.S.
Chainmonsters Kickstarts Pre-Sale Ahead of Full Game Launch
Chainmonsters, B-Side Games’ flagship Pokemon-inspired MMORPG, has announced its Foundation sale ahead of the official game launch scheduled for Q1 2023. The massive monster-centric open-world exploration game will release limited numbers of exclusive NFTs starting November 16th.
The NFTs will be based upon Chainmonsters’ housing/land feature, which will be the highlight of the game’s Early Access version. For the first 24 hours, players will also get increased chances to earn rewards and bonuses for free.