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New court documents reveal that while Sam Bankman-Fried appeared unprepared for the fall of his FTX crypto exchange, he had other survival plans. The filings disclose his strategy to acquire the island nation of Nauru, envisioning it as a sanctuary for himself and fellow members of the effective altruism movement in the event of a catastrophic event like a great fire or flood. Frequently misguided and sometimes dystopian Newly submitted  court documents, filed in a federal bankruptcy court in Delaware on July 20, have brought to light a memo written by an FTX Foundation official and Gabriel Bankman-Fried, the brother of Sam Bankman-Fried.  The memo laid out a visionary plan focused on the future survival of FTX and Alameda Research employees, as well as individuals affiliated with the effective altruism concept, presenting intriguing possibilities for the preservation of these groups in times to come. A recent lawsuit has been brought forward concerning allegations against th...

In an open letter, Cameron Winklevoss slammed DCG's Barry Silbert for allegedly playing the victim card while owing $1.2 billion to Gemini’s 232,000 Earn customers. Crypto exchange Gemini founder and CEO Cameron Winklevoss is again threatening to sue Digital Currency Group and its CEO Barry Silbert over delays in the resolution of Genesis for its Earn customers while slamming the CEOfor allegedly trying to play the victim card. In the July 3 “Open Letter to Barry Silbert,” Winklevoss alleged the DCG enterprise had engaged in “fraudulent behavior” via a “culture of lies and deceit” — which have come at the expense of Gemini’s 232,000 Earn users. Earn Update: An Open Letter to @BarrySilbert pic.twitter.com/ErsYpcEjQD — Cameron Winklevoss (@cameron) July 4, 2023 Among the accusations, Winklevoss’ strongly-worded letter alleges that Silbert intentionally delayed resolution through “abuse” of the mediation process, stating:  "Mediation has given DCG an indefinite forbearance on ...

Major crypto exchange Huobi has quietly fixed a data breach in which a bad actor could have stolen user assets, spread malware, learned the IP address of every over-the-counter (OTC) trader since 2017, and identified nearly 5,000 crypto whales on the platform, according to a white hat hacker. Citizen journalist Aaron Phillips discovered the data breach occurred in the summer of 2021, when Huobi accidentally shared a file containing AWS credentials. However, after learning about the breach in 2022, it took Phillips an entire year to get the exchange to confirm that the breach had been fixed. “For two years, every user who logged into a Huobi website or app was potentially at risk of losing their account,” the citizen journalist wrote. “An attacker exploiting Huobi’s mistakes would have had the opportunity to carry out the largest crypto theft in history. ” Huobi data breach exposed 5,000 whales Huobi accidentally published the sensitive file in June 2021. According to Phillips...

Bloomberg has reported that collapsed crypto exchange FTX has issued bankruptcy filings that show the company held $1.4 billion in cash to conclude 2022. The number displayed the holding count at the end of the year, with an interim update also showing a 40% headcount drop. The FTX bankruptcy proceedings have been an interesting narrative of the financial sector this year. Currently, the proceedings have shown where the balance of the current company stands and its employment figures. It also shows creditors’ request for certain Bankman-Fried family members to be subpoenaed. Source: CoinDesk FTX Bankruptcy Update According to a Bloomberg report released today, FTX held $1.4 billion in cash at the end of last year. Specifically, the report notes the company’s cash balance on Dec. 31, 2022, at higher than the $1.24 billion mark shared on Nov. 20. Moreover, the report states that the platforms trading house, Alameda Research, held 876.6 million versus the $401 m...

Last year, Goldman Sachs ’ chief executive David Solomon and crypto exchange FTX ’s founder Sam Bankman-Fried met in the Caribbean to discuss the bank advising the crypto firm. After that, in mid-2022, the investment bank was reportedly in talks with the exchange to integrate some aspects of its derivatives businesses. Now, the tables have completely turned and the partnership talks are non-existent. The crypto exchange collapsed in Q4 2022, mishandling billions worth of user funds. Apart from customers, a host of other entities have been affected too. Just a day back, the FTX creditor list was made public. According to the same, Goldman Sachs was a part of the creditor list to which FTX owed money. Read More: FTX Owes Money to Apple, Binance, Netflix, and More According to New Filings Goldman denies claims The industry has been trying to distance itself from FTX for quite some time. A spokesperson for the investment bank recently told Blockworks ...

SBF had claimed that the operations of FTX and Alameda were independent, but the recent lawsuit has revealed that both firms worked in conjecture from day one. New reports into Sam Bankman-Fried and his collapsed exchanges revealed that Alameda Research, the now-bankrupt crypto trading firm, almost collapsed in 2018, even before FTX was in the picture. A report published in The Wall Street Journal citing former employees revealed that Alameda incurred heavy losses from its trading algorithm. The algorithm was designed to make a large number of automated and fast trades. However, the firm was losing money by guessing the wrong way about price movements. In 2018, Alameda lost nearly two-thirds of its assets due to the price fall of the XRP token and was in a blink of a collapse. However, Bankman-Fried reportedly managed to rescue the trading firm by raising funds from lenders and investors on a promise of returns of up to 20% on their investment. As per the report, In Jan. 2019, Alamed...