Employees try to sell assets with Bankman-Fried Away

(Bloomberg) — FTX.com founder Sam Bankman-Fried said Thursday that he is shutting down Alameda Research, the trading house at the center of speculation over whether his crypto exchange mismanaged client funds. Trading may be suspended in a few days on FTX US, the domestic operation of the platform.

Most Read by Bloomberg

The crisis that hit FTX came down this week, with rival Binance Holdings Ltd. to agree to a hastily arranged rescue and then walk away a day later. US authorities are now investigating FTX’s dealings, Bloomberg News reported, and Bankman-Fried has warned of bankruptcy if it can’t secure funds to cover a shortfall of up to $8 billion.

Key stories and developments:

  • Crypto markets stabilize on hopes of muted impact from FTX Rout

  • FTX heading for bankruptcy with $8bn hole, US probe

  • Sequoia Capital is reducing the value of its entire stake in FTX

For crypto market prices: CRYP; for top crypto news: TOP CRYPTO

(All times are US Eastern)

Juniors try to sell assets with SBF Away (2:20pm)

Employees of the US-based crypto exchange are in discussions to sell parts of the business, including some assets that Bankman-Fried amassed in a sweeping industry-wide acquisition, according to two people with direct knowledge of the matter, who requested anonymity because the conversations were private.

FTX Implosion Rattles Retail Investors (2:15pm)

The collapse of Bankman-Fried’s FTX.com is a worst-case scenario for retail traders who poured their savings into crypto.

White House Monitors Crypto Markets (1:52 PM)

The Biden administration is aware of recent developments surrounding cryptocurrencies and will “continue to monitor the situation,” White House press secretary Karin Jean-Pierre told reporters Thursday.

Jean-Pierre said the White House believes cryptocurrency markets require “appropriate oversight,” but declined to comment on specific steps regulators can or should take.

“The latest news further underscores these concerns and underlines why prudent regulation of cryptocurrencies is indeed necessary,” Jean-Pierre said in her daily press briefing.

FTX US Says Trading May Be Halted in Days (1:31 PM)

FTX US, the American entity of Bankman-Fried’s crypto exchange, said that trading on it may be suspended in a few days. FTX.com and FTX US are separate entities with separate management staff, technology infrastructure and licensing, but have similar owners and investors, company representatives have said in the past.

FTX Agrees With Tron To Allow Users To Withdraw Some Tokens (1:10 PM)

FTX said it has reached an agreement with Justin Sun’s Tron that will allow users to withdraw some tokens from the troubled exchange.

Japan destroys local FTX unit. Freezes Exchange Activity (12:52 PM)

The Japanese government has ordered FTX.com’s local subsidiary to suspend some of its operations, saying it lacks a structure to properly offer cryptocurrency exchange services to users.

Crypto Entrepreneur Sun Token Jumps After Offer Of Help To FTX (12:37 PM)

Tron founder Justin Sun said on Twitter early Thursday that his company is working with FTX to address its liquidity crisis, without providing specific details. The price of the native token used on the Tron blockchain has soared on the warring platform.

FTX resumes withdrawals after two-day hiatus (12:28 PM)

FTX.com resumed withdrawals on the platform, according to blockchain data, after halting such activities on Tuesday. Nansen and Kaiko, another blockchain data company, have both confirmed continued operations. FTX processed $8 million worth of withdrawals in an hour on Thursday, Nansen said.

Bankman-Fried Closes Trading Company (11:40 AM)

Bankman-Fried is shutting down Alameda Research, the trading house at the heart of his digital asset empire, as he seeks his latest funding to save his struggling crypto exchange FTX.

–With assistance from Yueqi Yang, Muyao Shen, Jordan Fabian, Takashi Nakamichi, Nao Sano, and Philip Lagerkranser.

Most Read by Bloomberg Businessweek

©2022 Bloomberg LP

Leave a Reply

Your email address will not be published. Required fields are marked *