BoC Sen Dep Gov Rogers – not seeing much contagion from Crypto (FTX) to financial markets

WSJ: Crypto firm Genesis has approached Binance for an investment, bid for loan book

Wall Street Journal (gated) with this on whats going on at Genesis.

Cryptocurrency firm Genesis has approached crypto exchange Binance for an investment and to bid for its loan book, according to people familiar with the matter.

Binance decided not to invest, fearful that some of Genesis’s business could create a conflict of interest down the line, according to one of the people familiar with the matter.

The company also approached private equity giant Apollo Global Management for capital assistance, according to people familiar with the matter.

Earlier:

Crypto firm Genesis warns of bankruptcy if it does not get new funding

And, even earlier:

And, even earlier, from last week:

BTC update:

Crypto firm Genesis warns of bankruptcy if it does not get new funding

Bitcoin dips to a new 2 year low

Bitcoin falls to its lowest level in 2 years

Looking at the hourly chart, it would take a move back above the $16,184 to $16,218 swing area, to give the buyers some comfort (see red numbered circles). Ultimately, however, a move back above the 100 and 200 hour moving averages near $16,550 would be needed to increase the bullish bias (see blue and green lines in the chart above).

Social media chatter that Digital Currency Group owes US$1.1 bn to Genesis

I’m not seeing confirmation of this, just some talk that Digital Currency Group owes $1.1B to Genesis via a previously undisclosed promissory note that has been hidden from potential investors.

I any more comes through I’ll post it.

Last week was this:

Update chart of leading coin Bitcoin

Read this Term posted earlier. Hanging on to the $16 mark:

Collapsed Cryptocurrency exchange FTX owes its 50 biggest creditors nearly US$3.1 bn

Reuters with a summary breakdown of what FTX owes to its biggest losers creditors:

  • owes around US$1.45 billion to its top ten creditors
  • and US$3.1 bn to the biggest 50 on the **** list

Leading coin BTC update. feeling the contagion malaise:

Wall Street Journal reports that crypto lender Genesis had sought emergency loan of US$1bn

The reverberations of the FTX/SBF imploision conitnue.

WSJ with the report. The Journal is gated, but Reuters have the info:

  • Cryptocurrency lender Genesis was seeking an emergency loan of $1 billion from investors before it suspended withdrawals on its website, the Wall Street Journal reported on Thursday, citing a confidential fundraising document.
  • “Genesis had been exploring all possible options amidst the liquidity crunch resulting from the FTX news,” the company said in an emailed statement to Reuters, adding that it took the decision to suspend redemptions after reviewing a number of options.

Leading crypto Bitcoin is holding on considering all the bad news for the sector. It’d be hard to draw much of a bullish conclusion from this chart, but it could be a lot worse!

The man who unwound Enron said he’s never seen as big a mess as at FTX

John Jay Ray III specializes in cleaning up the worst corporate messes but he’s never seen anything like FTX.

The new FTX CEO would down Enron, Nortel and other major companies that have collapsed but he will have his hands full with FTX, according to a court filing.

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” he wrote.

He cited compromised systems integrity, faulty regulatory oversight and concentration of power and control in a small group of inexperienced, unsophisticated and ‘potentially compromised’ individuals. He said there was no appropriate governance and centralized control of cash.

Ray says he doesn’t know how much cash the company has when it filed for bankruptcy and has only located a secured ‘a fraction’ of digital assets it hopes to recover.

If you haven’t read the latest series of leaked messages from Sam Bankman-Fried, they’re truly unbelievable.

Singapore’s state-owned investor Temasek has written down entire $275 mn investment in FTX

Singapore’s state-owned investor Temasek manages circa USD300bn.

  • Has decided to write down its entire $275 million investment in FTX.
  • Says that its belief in Sam Bankman-Fried was likely “misplaced”

Misplaced. Yeah, I think so. Temasek is not alone in this though.

How long does it take for charges to be laid against SBF? What’s the delay?

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While we’re here, Bitcoin update:

Bankman-Fried somehow thinks he can raise money

The WSJ is reporting that Sam Bankman-Fried thinks he can raise enough money to make users whole.

The shortfall is up to $8 billion and so far his efforts have been unsuccessful.

Lately, Bankman-Fried has been posting a long string of tweets to spell out ‘what happened’ and he’s teasing that he will tell more. However, people are noting that every time he tweets, he deletes an old and potentially-incriminating tweet. The reason appears to be that some internet caches don’t recognize the missing old tweet when a new tweet is made at the same time.

Anyone who would give this company or FTX money right now is insane. The brand is worthless and he’s almost-certainly going to be arrested.

Here’s one of the deleted tweets:

“3) It’s heavily regulated, even when that slows us down. We have GAAP audits, with > $1b excess cash. We have a long history of safeguarding client assets, and that remains true today.”

And of course, this classic, which was just before the bankruptcy:

“2) FTX has enough to cover all client holdings.

We don’t invest client assets (even in treasuries).

We have been processing all withdrawals, and will continue to be.”