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- Contagion In The Crypto Markets
Contagion In The Crypto Markets
Plus: Ex FTX employee reveals how funds were stolen 👀
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Markets & News
As regulators scrutinise FTX, rival exchanges try to reassure investors (5 minute read)Bitcoin and other cryptocurrencies remained under pressure on Monday following last week's collapse of crypto exchange FTX while rival exchanges sought to reassure jittery investors of their own stability. Kris Marszalek, CEO of Singapore-based crypto exchange Crypto.com, refuted suggestions it could be in trouble, saying in a YouTube livestream address the platform would prove all naysayers wrong.
How Binance played a key role as FTX collapse unfolded (6 minute read)One of the world’s largest cryptocurrency exchanges, FTX, has collapsed, with what is reported to be an $8bn (£6.8bn) black hole on its balance sheet. Of its 1 million users, many are now unable withdraw their funds. FTX’s rival, Binance, has played a key role in the saga. Here is a step by step account of how the disaster unfolded.
'FTX Has Been Hacked': Crypto Disaster Worsens as Exchange Sees Mysterious Outflows Exceeding $600M (2 minute read)The collapse of FTX, already one of the most spectacular disasters in financial history. More than $600 million was siphoned from FTX's crypto wallets late Friday. Soon after, FTX stated in its official Telegram channel that it had been compromised, instructing users not to install any new upgrades and to delete all FTX apps.
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Misc
Crypto Token Launch Platform Tokensoft Doxes 4500 Users, Calling Them ‘Bad Actors’ (1 minute read)California-based Tokensoft, a chain-agnostic token launch platform, has doxxed over 4000 of its users. A Tokensoft community manager with the handle “Nick G.” posted the list on the company’s discord, alleging that the named users were ‘gaming’ the Tokensoft DAO’s airdrop.
Ex-FTX Employee exposes how funds were successfully moved without auditors noticing (4 minute read)I believe as an ex-FTX employee I can offer some insight into how funds were succesfully comingled between customer, CHO and Alameda wallets without auditors noticing. The entire hack was possible due to the elx trapdoor SBF put in ~ 9 months ago which we can see in public test
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Best of Twitter
Founder of Kraken @jespow telling people in Twitter spaces to take their coins off exchanges, including his own, if you’re not actively trading.
He says even if the exchange runs a tight ship, the government can seize your coins on CEX. The Canadian government did it last year.
— TCB (@THORmaximalist)
6:33 PM • Nov 13, 2022
The reason a large amount of European users lost funds in FTX,
Is because they were driven to trade there after Futures were banned in Binance due to regulations,
As governments kept saying Binance wasn't regulated and praising the altruistic billionaire.Cannot make this up.
— Tree of Alpha (@Tree_of_Alpha)
11:38 AM • Nov 12, 2022
I know FTX offered their biggest clients "no-liquidation" accounts.
This means they trusted you to repay a negative balance, so they'd let you top up whenever instead of liquidate you.
Its like a casino giving you credit- its just chips for them, they dont need $ in the bank.
— Jordi Alexander (@gametheorizing)
5:39 PM • Nov 11, 2022
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