Does B stand for Bankman-Fried or Bankruptcy? • ExamPaper

Welcome back to Chain reaction.

Happy December! Another month until we reach 2023 and then start all over again (or something). Time flies when you read crypto news, am I right? It feels like there’s something going on every day in the crypto world and this week continued to prove that.

On Wednesday, former FTX CEO Sam Bankman-Fried spoke at The New York Times annual DealBook summit in an interview with Andrew Ross Sorkin. SBF said FTX failed on risk management and that it was not “knowingly mixing funds”. Hmm. I was out of the office moving into a new apartment, but I’m catching up on my wonderful colleagues’ posts about SBF’s claims, which you can read about here, here, and here.

Speaking of FTX, the contagion continues to spread in the crypto markets as the latest domino to fall was BlockFi, which filed for Chapter 11 bankruptcy on Monday. In July, FTX signed a deal with the option to buy BlockFi for up to $240 million, BlockFi CEO Zac Prince tweeted. Things have collapsed since then, as FTX collapsed and also filed for Chapter 11 bankruptcy weeks before BlockFi. With that said, “the company expects FTX recovery to be delayed.”

This news follows a number of crypto-focused companies, such as Voyager and Celsius, which are also currently going through bankruptcy proceedings.

Whether more contagion is on the way is the question everyone seems to have. While I don’t have a crystal ball to predict the future, I’m pretty sure it won’t be the last company to screech after FTX.

Last week, we shared an episode of a conversation with Binance’s best dog, aka CEO Changpeng “CZ” Zhao. This week for Tuesday’s episode, we released a recording of our discussion live on stage with Alchemy’s CEO Nikil Viswanathan during ExamPaper Sessions: Crypto 2022.

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this week in web3

Here are some of the biggest crypto stories ExamPaper covered this week.

SBF claims massive ignorance of apparent conflict in FTX’s demise

As mentioned above, Sam Bankman-Fried (SBF), the founder and former CEO of the fallen FTX, spoke at The New York Times annual DealBook summit in an interview with Andrew Ross Sorkin. SBF said he was not “knowingly mixing funds” between Alameda and FTX. “Given the size of the feature, I don’t think it was our intention, in fact it was significantly more interconnected than I would have ever wanted,” he said.

BlockFi files for Chapter 11 bankruptcy

The past year has been a hectic one for crypto lending platform BlockFi, and today is no different as the company shared an announcement that it had voluntarily filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the District of New Jersey.

Binance launches proof-of-reserves system for BTC holdings

Cryptocurrency exchange company Binance has released a new site that explains the proof-of-reserves system. The company starts with BTC reserves. At the moment, Binance has a reserve ratio of 101%. It means that the company has enough bitcoins to cover all users’ balances. This move comes a few weeks after the collapse of FTX, another popular crypto exchange.

Lawyers see crypto regulation coming in 2023 as the industry needs to rebuild confidence (TC+)

Despite an uneven year in the crypto markets, many market participants are unperturbed about the long-term health of the sector, saying legal frameworks could restore confidence in the sector in 2023. “Crypto will recover,” Katherine Dowling, general counsel at Bitwise Asset Management, told ExamPaper. “This is not the death of crypto.”

How contagious will FTX’s demise become as BlockFi files for bankruptcy? (TC+)

Crypto lending platform BlockFi filed for Chapter 11 bankruptcy on Monday, just a few weeks after the once-major crypto exchange FTX did the same. While BlockFi has struggled for months to stay afloat (and could even be acquired by FTX), this latest filing indicates that the bankruptcy contagion may run deeper than what the crypto industry sees on the surface.

the latest pod

In chain reactions Tuesday delivery Alchemy CEO Nikil Viswanathan had a lot to say about how the industry and developer focus has shifted to infrastructure, what will drive the next wave of consumer interest, and which blockchains he sees the most developer activity on.

He also shared for the first time why his startup Alchemy was named after a medieval form of chemistry (disclaimer: it has nothing to do with science).

As a reminder, this was the last episode of Chain Reaction for this season and we’re taking a break for the month of December but catching up in the new year where I’m sure there will be a lot to talk about!

Subscribe Chain reaction On apple podcasts, Spotify or your favorite pod platform to stay up to date with the latest episodes, and leave us a review if you like what you hear!

Follow the money

  1. Web3 developer platform Fleek raises $25 million led by Polychain Capital
  2. Cameroonian crypto and savings platform Ejara raises $8 million, led by Anthemis and Dragonfly
  3. Ethereum staking-focused startup Kiln raises $17.7M
  4. Crypto Market Maker Keyrock Closes $72 Million Series B
  5. Web3 gaming platform Burn Ghost raises $3.1 million to award NFT prizes to players

This list was compiled using information from Messari and ExamPaper’s own reporting.

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