CryptoSlate Wrapped Daily: SBF out as CEO as FTX files for bankruptcy; SEC Chairman’s ties with exchange under scrutiny CryptoSlate Wrapped Daily: SBF out as CEO as FTX files for bankruptcy; SEC Chairman’s ties with exchange under scrutiny
Congressman Tom Emmer has promised to investigate SEC Chairman Gary Gensler over his questionable link with FTX, Grayscale GBTC trades at less than $10,000 BTC equivalent, and much more in this edition of CryptoSlate Wrapped Daily.
4 min read
Updated: Sep. 26, 2023 at 2:48 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The biggest news in the cryptoverse for Nov. 11 includesย FTX filing for bankruptcy as John Ray III takes over from Sam Bankman-Fried as CEO, FTX users seeking to bypass bankruptcy process using the “Bahamas loophole”, US Congressman accused SEC Chairman of having dubious ties to FTX, and Crypto.com disclosing reserve holdings to allay rumors of insolvency.ย
CryptoSlate Top Stories
FTX files for bankruptcy, Sam Bankman-Fried steps down from CEO role
About 130 companies affiliated with the FTX Group have collectively filed for Chapter 11 bankruptcy on Nov. 11. The exchange said that it will work to restructure its remaining assets so as to refund affected stakeholders.
In addition, John Ray III will take up the CEO role from Sam Bankman-Fried.
Binance CEO expects more regulatory scrutiny following FTX implosion
Binance CEO Changpeng Zhao “CZ” said it had to back off the FTX deal, as a result of the regulatory scrutiny FTX has to battle with.
CZ added that the FTX collapse will call for increased scrutiny of crypto exchanges. For more transparency, CZ recommends that regulators should consider auditing the exchange’s business models and proof-of-reserves, in addition to KYC and AML laws.
Crypto.com discloses partial reserves in bid to counter insolvency rumors
Following the FTX fallout, several crypto exchanges including Crypto.com have moved to disclose their reserve holdings, to allay fears of insolvency.
According to details shared by Crypto.com CEO Kris Marszalek, the exchange holds about 53,024 Bitcoin, 391,564 Ethereum, and some altcoins which totaled approximately $3 billion.
Pantera Capital swiftly implements precautionary measures following FTX, Alameda fallout
Venture Capital firm Pantera said it conducted a risk assessment for projects in its investment portfolio, so as to take preventive measures following the FTX collapse.
From the assessment report, about 95% of the projects in Pantera’s portfolio have no exposure to FTX or Alameda. However, two startups were affected and will receive further assistance from the investment firm.
US Congressman says SECโs Gensler allegedly had dubious ties to FTX, promises investigation
SEC Chairman Gary Gensler, FTX CEO Sam Bankman-Fried, and Alameda CEO Caroline Ellison, reportedly have a long-standing relationship that was linked to MIT.
As a result, rumors are spreading that Gensler had sinister ties to FTX, in an attempt to help FTX gain more control over the crypto space.
In response to the speculations, crypto-friendly U.S. Congressman Tom Emmer said he would launch an investigation to uncover Gensler’s role in helping FTX gain a regulatory monopoly.
Desperate FTX users employ shady tactics to bypass bankruptcy process
In the wake of the FTX collapse, the Bahamas’ authority froze FTX’s assets. However, it authorized Bahamians to withdraw their remaining funds.
As a result, many FTX users are opting to collaborate with Bahamian citizens to help withdraw their funds. While some crypto community members have criticized the act as illegal, many investors including @depression2019 said it was better to employ such tactics to reclaim full funds instead of waiting for a 5-year bankruptcy process.
BlockFi halts withdrawals amid FTX crisis, Genesis Trading, Crypto.com emphasize transparency
The FTX fallout effect has caught up with BlockFi as it moved to suspend withdrawals and trading activities on its platform. BlockFi reportedly has a $400 million loan from FTX.US due for July 2023.
Kucoin CEO addresses rumours surrounding FTX, FTT exposure
In efforts to distance Kucoin from the FTX collapse, CEO Johnny Lyu shared some details of the Kucoin proof-of-reserve.
As of publication, Kucoin held about 20,504 BTC, 180,299 ETH, 69.6 million KCS, 1.08 million USDT, and 365 million USDC.
Realized Bitcoin losses spike as Grayscale GBTC trades at less than $10k BTC equivalent
FTX’s collapse which started on Nov. 9 forced Bitcoin to fall below $15,590. As a result, the realized losses on the flagship asset have spiked to new highs.
Similarly, Grayscale’s GBTC share has declined to an all-time low of $9,771. The GBTC is trading at a 41% discount to its net asset value (NAV).
FTX crash pushes Bitcoin to self-custody; Ethereum switched for stablecoins
As the FTX contagion unfolds, more investors are moving their Bitcoin way from centralized exchanges into self-custody wallets.ย Glassnode data shows that as of Nov. 11, out of roughly 19 million BTC in circulation, up to 78% (approximately 15 million) are held in self-custody. As a result, Bitcoin’s illiquid supply chart has spiked to new highs.
Further on-chain investigation revealed that the market cap of the top four stablecoins has flipped that of Ethereum. By implication, more investors are moving funds into stablecoins to hedge against the growing crypto market uncertainty.
Research Highlight
In spite of FTX catastrophe, Bitcoin whales lead aggressive accumulation phase
The FTX collapse has fueled bearish sentiment across the market. However, on-chain data analyzed by CryptoSlate indicates that Bitcoin whales increasing their holdings.
As of Nov. 10, the accumulation trend score (ATS) reached about 0.74, which indicates that Bitcoin investors are actively accumulating.
Similarly, the exchange net position change chart shows that holdings of whales and super whales have increased significantly more recently.
News from the Cryptoverse
FTX withdraws US CFTC derivatives plan
Following the bankruptcy filing of the FTX Group earlier on Nov. 11, Bloomberg reported that the company has withdrawn a derivatives clearing plan submitted to the U.S. Commodity Futures Trading Commission (CFTC).
The proposal would have allowed FTX users to access and mitigate derivatives risk in real time.
Deribit adjusts withdrawals and deposits procedure
Deribit exchange has notified users to create new wallet addresses following its Fireblocks update. Users were cautioned against sending funds to their previous accounts.
Withdrawal requests on the exchange will be approved and processed manually by a Deribit withdrawal.
Crypto Market
In the last 24 hours,ย Bitcoin (BTC) decreased by over 3%ย to trade at $16,722, while Ethereum (ETH) declined by 2.2% to trade at $1,258.
Biggest Gainers (24h)
- DeXe (DEXE): +25.6%
- dYdX (DYDX): +14.02%
- MX Token (MX): 11.78%
Biggest Losers (24h)
- FTX Token (FTT): -25%
- Nexo (NEXO): -16%
- Ren (REN): -15.74%
Mentioned in this article
Bitcoin 
Ethereum 
DeXe 
dYdX (Native) 
MX Token 
FTX Token 
Nexo 
FTX 
Binance 
Crypto.com 
Sam Bankman-Fried 
Changpeng Zhao Author 
Christian Nwobodo
Christian is a crypto-curious nerd who loves to investigate how protocols work under the hood. Christian is interested in DeFi protocol research, token economics, and on-chain analytics.
Editor Editor 
News Desk
CryptoSlate is a comprehensive and contextualized source for crypto news, insights, and data. Focusing on Bitcoin, macro, DeFi and AI.
In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,163.08
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
DeXe
$13.7562
DeXe (Decentralized Social Trading Platform) is an online, decentralized and autonomous cryptocurrency assets portfolio environment.
dYdX (Native)
$2.20902
DYDX is a governance token that allows the dYdX community to truly govern the dYdX Layer 2 Protocol.
FTX Token
$1.44956
FTX is a cryptocurrency derivatives exchange that offers futures, leveraged tokens and OTC trading.
Nexo
$1.25248
The Nexo token is the worldโs first dividend-paying asset-backed security token and is backed by the underlying assets of Nexoโs loan portfolio.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Crypto.com
Crypto.com was founded in 2016 on a simple belief: itโs a basic human right for everyone to control their money, data and identity.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
