Welcome back to Chain reaction.
If you’re reading this, I bet you probably weren’t arrested this week and are now in a Bahamian prison. But you know who used to be arrested and is now in a Bahamian prison? Yes, former FTX CEO Sam Bankman-Fried.
It seems most of the headlines have appeared on SBF and FTX lately – and with good reason. This week’s chatter was surrounded by his anticipated testimony at the US House Financial Services Committee hearing on the collapse of FTX, where he never spoke because he had been arrested the night before.
After being denied bail, SBF is being held at the Bahamas Department of Correctional Services in the prison’s maximum security infirmary with five other inmates in a “dormitory-like setting,” according to The Nassau Guardian. And don’t worry, the Bahamas Acting Corrections Commissioner Doan Cleare said SBF is “in good spirits” and the prison is no longer infested with rodents.
Now we can all sleep well tonight.
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this week in web3
Here are some of the biggest crypto stories ExamPaper covered this week.
SEC, CFTC and SDNY law firm is suing FTX’s Sam Bankman-Fried for defrauding investors
The U.S. Securities and Exchange Commission (SEC) has officially charged disgraced FTX founder Sam Bankman-Fried (aka SBF) with investor defrauding, it emerged Tuesday morning after his arrest in the Bahamas. The SEC said in a press release that in addition to being charged with fraud involving equity investors in FTX, it is also under investigation regarding other securities law violations — noting that investigations are ongoing against other individuals involved. The SEC isn’t alone in getting its hands on this ball, though: Both the Southern District of New York’s law firm and the Commodity Futures Trading Commission (CFTC) also filed charges against SBF in “parallel actions.”
US attorney says ‘we’re not done’ with suing individuals for FTX collapse
Multiple U.S. government agencies held a press conference on Tuesday afternoon about the charges against former FTX CEO Sam Bankman-Fried. When asked if the entities will bring charges against other individuals allegedly involved in the collapse of the FTX, Damian Williams, the U.S. Attorney for the Southern District of New York, said at the event: “All I can say is this: it is clear that we are not done yet.”
FTX’s new CEO John Ray describes the demise of crypto exchange in US House testimony (TC+)
As mentioned above, the US House Financial Services Committee held a hearing on FTX’s collapse Tuesday morning. John J. Ray III, FTX’s CEO for four weeks, was the sole witness for the hearing when SBF appeared before a Bahamian court for his arraignment. The four-hour hearing covered a lot of ground and left many questions unanswered, but several parts stood out from Ray’s testimony. Given that we assume you didn’t get to follow the entire session live, feel free to write off our notes.
PayPal and MetaMask have teamed up to make it easier to buy crypto
PayPal is best known as an online payment method. But the company wants to become an easy way to get started with cryptocurrencies. In that regard, ConsenSys, the company behind MetaMask, announced that it would add an integration into its crypto wallet so that users can buy cryptocurrencies using their PayPal account.
Coinbase launches asset recovery tool for unsupported Ethereum-based tokens
Coinbase, the second-largest crypto exchange in the world, has launched a new tool to help its customers recover more than 4,000 unsupported ERC-20 tokens sent to its ledger, the company told ExamPaper exclusively. . “ERC-20 token” is technical terminology for any cryptocurrency created using the Ethereum blockchain. While Coinbase supports hundreds of cryptocurrencies, there are thousands that do not. The ERC-20 self-service asset recovery tool allows customers to recover various types of tokens sent to a Coinbase address.
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Follow the money
- Aztec Network raised $100 million in a round led by a16z to build an encrypted blockchain
- Nillion raised over $20 million to build a non-blockchain decentralized network
- Crypto insurance company Evertas raised $14 million in a Series A
- Forum3 raised $10 million to help businesses build web3-enabled loyalty programs
- Web3 licensing protocol Spaceport has raised $3.6 million in a pre-seed round
This list was compiled using information from Messari and ExamPaper’s own reporting.