Digital Assets: More Crypto Players Follow FTX Down The Bankruptcy Route
The insolvency of Sam Bankman-Fried’s FTX has set off a chain reaction of belly-ups in the crypto industry.
The unfortunate failure of FTX and sister firm Alameda Research has claimed another victim – Solana-based decentralized exchange Serum said its program on the mainnet became defunct as the upgrade authority was held by FTX. It said that lead protocols such as Jupiter and Raydium had moved away from Serum as the security of the exchange was in jeopardy. Moreover, Serum also said the future of its SRM native token was uncertain due to the coin’s exposure to the turmoil unleashed by the collapse of FTX. (CryptoNews)
Meanwhile, at troubled crypto broker and lending firm Genesis Global, all efforts are afoot to ward off insolvency. Reportedly, creditors at the firm and restructuring lawyers are working together to thrash out a plan after the aftermath at FTX became clear. The firm is also in touch with investors, its largest creditors and largest borrowers to attempt ways and means to boost its liquidity.
According to Genesis, the firm’s goal is to “resolve the current situation in the lending business without the need for any bankruptcy filing.” (CryptoNews)
Crypto exchange Bitfront, a US platform backed by Japan’s social media giant Line, has unveiled plans to shut down its operations in the coming months. It said in a statement that it has “regretfully determined that we need to shut down Bitfront in order to continue growing the Line blockchain ecosystem and Link token economy.” To its credit, Bitfront has not laid the blame at FTX’s door, clarifying that the decision to down shutters was not related to “certain exchanges that have been accused of misconduct,” a veiled hint at FTX. (Bitcoin.com)
Meanwhile, failed crypto player BlockFi has sued FTX founder Sam Bankman-Fried for $580 million to seize shares in the US trading platform Robinhood, which he allegedly pledged as collateral just days before the exchange entered Chapter 11 proceedings. (CryptoNews.com)
Unfortunately, the man in the eye of the storm, Sam Bankman-Fried, has admitted in an interview with Axios that he only has around $100,000 in his bank accounts, down by 99% from his net worth of around $17 billion based on calculations by Bloomberg. (CryptoNews.com)
“Am I allowed to say a negative number? I mean, I have no idea. I don’t know. I had $100,000 in my bank account last I checked. It’s complicated. Basically, everything I had was just tied up in the company,” Bankman-Fried said.
Related Story: (More) Crypto Contagion – BlockFi Is Insolvent
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