DeFi Planet Weekly Round-Up #27 | FTX Files For Chapter 11 Bankruptcy ??

November 11th 2022 #27

The Fiasco Finale: FTX Files For Chapter 11 Bankruptcy

To cap off what has to be the most turbulent week in cryptocurrency history, FTX, along with 130 affiliated companies, including FTX.US and Alameda Research, has filed for Chapter 11 bankruptcy due to a crippling "liquidity crunch."

Sam Bankman-Fried (SBF), the company's embattled CEO, has also resigned and will be replaced by John Ray III.?

According to the Nov. 11 press release, SBF would remain available to provide the necessary assistance to the new CEO to ensure an orderly transition.?

The PR also stated that employees would continue to serve in various capacities within the company.

Ray commented on the development, saying:

"The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders. The FTX Group has valuable assets that can only be effectively administered in an organized, joint process. I want to assure every employee, customer, creditor, contract party, stockholder, investor, governmental authority, and other stakeholder that we are going to conduct this effort with diligence, thoroughness, and transparency. Stakeholders should understand that events have been fast-moving and the new team is engaged only recently. Stakeholders should review the materials filed on the docket of the proceedings over the coming days for more information."

According to?CoinMarketCap, FTT is down 22% due to the news.

Catch up on our published articles for the week!

News

• Binance Backs Out of FTX Acquisition Deal >>>?Read more
• Crypto Industry Insiders Say People Have Reasons to Worry After Binance Announced Plans to Purchase FTX >>>?Read more
• Binance Announces Plans to Acquire Rival FTX >>>?Read more
• BTC Falls to a Year Low; ETH Also Declines as Binance’s Takeover of FTX Worries Investors >>>?Read more
• Sam Bankman-Fried’s Net Worth Decreases by 93%?>>>?Read more
• Binance to Liquidate 100% of its FTT Holdings >>>?Read more
• The FBI Seizes $3.36 Billion in Bitcoin Stolen from the Underground Silk Road Market Over a Decade Ago >>>?Read more
• Vitalik Updates Ethereum’s Roadmap, Adds New Feature >>>?Read more

?Articles

• Cryptojacking: What It Is and How to Prevent It: This article comprehensively examines cryptojacking, explaining how it works as well as how to detect and prevent this type of illegal crypto mining. >>>?Learn more
• Understanding ProximityFi and How NEAR’s Nightshade Will Disrupt DeFi: This guide will explain why blockchain scalability is important, existing scalability solutions, and how NEAR’s Nightshade will disrupt DeFi. >>>?Learn More
• How Does a16z’s NFT License Impact the NFT Industry?: This article explores the impact a16z NFT licenses have on the NFT industry. >>>?Learn More
• 6 Unique Ways Brands Can Use Phygital NFTs to Boost Marketing Strategy: This article comprehensively examines why and how brands incorporate phygital in their marketing campaigns. >>>?Learn more
• How to Use the Polygon Bridge: This article explores important details about the Polygon Bridge. It also includes a comprehensive guide to using the Polygon bridge. >>>?Learn more

?In Other News…

FTX: Sam Bankman-Fried's crypto empire crumbles further

The Bahamas has frozen specific FTX assets, effectively drowning Sam Bankman's troubled cryptocurrency trading firm.?

The Bahamas Securities Commission has frozen the assets of FTX Digital Markets, an FTX subsidiary, claiming knowledge of allegations that the firm mishandled, mismanaged, or transferred client assets to Alameda Research.?

What has turned out to be Sam Bankman-Fried's worst week isn't getting any better.?

According to the release, attorney Brian Simms, K.C., was appointed as a provisional liquidator after the authorities petitioned the Supreme Court of The Bahamas.?

The Bahamas Securities Commission stated in the announcement that it is aware of allegations that FTX mishandled, mismanaged, or transferred client assets to Alameda Research, Bankman-crypto Fried's trading firm.?

"Based on the Commission's information," the Bahamian securities regulator added, "any such actions would have been contrary to normal governance, without client consent, and potentially unlawful."

Reuters?reported on Thursday that Bankman-Fried transferred $4 billion from FTX to Alameda earlier in 2022 without informing anyone.?

The Bahamas Securities Commission also stated that it had determined that the "best course of action" was to place FTX Digital Markets in provisional liquidation in order to "preserve assets and stabilize the company."

?Spotlight on interesting projects

Equito Finance

Equito Finance?is a Decentralized Exchange built on the?Algorand?blockchain. Equito also has cross-chain support and has already utilized its cross-chain support by creating a?bridge to the Ethereum blockchain. After three years of development, Equito Finance Dex has?launched?its second testnet.?

Equito Finance was founded by?Paolo d'Ippolito?who is also the CEO.

To learn more about Equito Finance, visit their?website, join their?Discord?and follow them on?Twitter.

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