Wall Street Journal: FTX Founder Sam Bankman-Fried Says He Can’t Account for Billions Sent to Alameda

Wall Street Journal: FTX Founder Sam Bankman-Fried Says He Can’t Account for Billions Sent to Alameda . “FTX founder Sam Bankman-Fried said he couldn’t explain what happened to billions of dollars that customers of his failed cryptocurrency exchange sent to the bank accounts of his trading firm, Alameda Research. And he said he couldn’t rule out the possibility that money deposited by FTX customers who were told their money was theirs alone was in fact lent to Alameda.”

CoinDesk: Telegram CEO Durov Plans to Build Crypto Wallets, Decentralized Exchange

CoinDesk: Telegram CEO Durov Plans to Build Crypto Wallets, Decentralized Exchange. “Bolstered by Fragment’s strong sales, [Pavel] Durov is setting Telegram on a course for deeper crypto buildouts. He said the company will build a decentralized exchange and non-custodial wallets that could reach millions of users. Telegram is already a go-to messaging app for many crypto traders, giving it a captive audience from the start.”

New York Times: Inside Sam Bankman-Fried’s Quest to Win Friends and Influence People

New York Times: Inside Sam Bankman-Fried’s Quest to Win Friends and Influence People. “A network of political action committees, nonprofits and consulting firms funded by FTX or its executives worked to court politicians, regulators and others in the policy orbit, with the goal of making Mr. Bankman-Fried the authoritative voice of crypto, while also shaping regulation for the industry and other causes, according to interviews, email exchanges and an encrypted group chat viewed by The New York Times.”

CoinDesk: Senator Warren Demands Sam Bankman-Fried, FTX Execs Be Held Accountable to ‘Fullest Extent of the Law’

CoinDesk: Senator Warren Demands Sam Bankman-Fried, FTX Execs Be Held Accountable to ‘Fullest Extent of the Law’. “In the letter, Sens. Elizabeth Warren (D-Mass.) and Sheldon Whitehouse (D-R.I.) reminded Garland and Assistant Attorney General Kenneth Polite of the DOJ’s recently renewed commitment to prosecuting white-collar criminals, and asked that they honor that commitment when investigating the behavior of former FTX CEO Sam Bankman-Fried and other executives ‘with the utmost scrutiny.’”

Reuters: Crypto exchanges enabled online child sex-abuse profiteer

Reuters: Crypto exchanges enabled online child sex-abuse profiteer. “The sums involved in buying and selling images of sexual abuse remain small compared to other criminal activities, such as the drugs trade. But the figures are increasing. While in the past offenders typically traded child abuse imagery among themselves in small communities, the darknet has become a breeding ground for sites like Dark Scandals that charge in crypto. And the damage is far-reaching.” This story is important but it’s also horrifying and has all kinds of disturbing content. PLEASE read with caution.

Vox: Crypto probably isn’t dead, but should it be?

Vox: Crypto probably isn’t dead, but should it be?. “For those who have been paying attention to the sector, this sort of feels like waking up from a worldwide hypnosis. The metaverse thing, which is basically Zoom meetings with legless cartoons, never made sense. Neither did this idea that images of pixelated punks and weird-looking monkeys were worth millions of dollars as NFTs. Thousands of crypto tokens and coins spun up out of thin air have been revealed to be nothing more than magic beans.” If you HAVEN’T been paying attention to the sector, this is a good overview of its problems with lots of links to backstory.

Financial Times: Let crypto burn

Financial Times: Let crypto burn. “In the aftermath of the collapse of FTX, authorities should resist the urge to create a parallel legal and regulatory framework for the crypto industry. It is far better to do nothing, and just let crypto burn. Actively intervening would convey undeserved legitimacy upon a system that does little to support real economic activity. It also would provide an official seal of approval to a system that currently poses no threat to financial stability and would lead to calls for public bailouts when crypto inevitably erupts again.”

Wall Street Journal: FTX Crypto Customers Worry They Will Never See Their Money Again

Wall Street Journal: FTX Crypto Customers Worry They Will Never See Their Money Again. “Customers of beleaguered crypto exchange FTX are losing hope they will ever see their money again. The company’s massive financial problems began spilling into the open early this month, and FTX was quick to halt withdrawals from its international unit. American customers had hoped they might be luckier, but many of them haven’t been able to get their money out either.”

Swiss bankers warn: Three quarters of retail Bitcoin investors are in the red (The Register)

The Register: Swiss bankers warn: Three quarters of retail Bitcoin investors are in the red. “Somewhere between 73 and 81 percent of retail Bitcoin buyers are likely to be into the negative on their investment, according to research published Monday by the Bank of International Settlements (BIS). In other words: the Bitcoin they bought is now worth less. Bitcoin is down 73 percent in the past year, and up 155 percent in the past five years. Losses are only realized upon sale.”

My bad: The YouTube financial influencer network paid to pump FTX (MarketWatch)

MarketWatch: My bad: The YouTube financial influencer network paid to pump FTX. “Kevin Paffrath, a 30-year-old YouTube star with 1.85 million followers to his real estate and financial tip page Meet Kevin, says he was paid $2,500 every time he mentioned FTX in one of his videos. And he believes he had one of the smaller deals with the crypto exchange; others have claimed six-figure deals with the firm.”

US DOJ: Two Estonian Citizens Arrested in $575 Million Cryptocurrency Fraud and Money Laundering Scheme

US DOJ: Two Estonian Citizens Arrested in $575 Million Cryptocurrency Fraud and Money Laundering Scheme. “Two Estonian citizens were arrested in Tallinn, Estonia, yesterday on an 18-count indictment for their alleged involvement in a $575 million cryptocurrency fraud and money laundering conspiracy. The indictment was returned by a grand jury in the Western District of Washington on Oct. 27 and unsealed today.”

Coindesk: UC Berkeley Suspends Stadium Naming Rights Deal With FTX

Coindesk: UC Berkeley Suspends Stadium Naming Rights Deal With FTX. “The deal was originally planned for 10 years and lasted just 450 days. The sponsorship was inked in August 2021 for $17.5 million. It was paid entirely in cryptocurrency and was the exchange’s first partnership in college sports. With the deal, Cal’s football stadium was named FTX Field at California Memorial Stadium.”