Digital Assets: More Crypto Players Follow FTX Down The Bankruptcy Route

November 30, 2022 | Digital Assets, News

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. (

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. (

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. (

“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

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
FinTech: Adyen Launches ‘Payout Services’ For Faster Payouts To The Gig And SMB Economies
June 2, 2023     FinTech, News

Adyen, a global financial technology platform, has launched Payout Services, allowing its customers to make instant payouts to their users or partners. By connecting directly to real-time payment rails, Adyen’s…
Digital Assets: Oracle Red Bull Racing Seeks To Digitize Engagement With Fans On The Sui Blockchain

Oracle Red Bull Racing has announced a multi-year partnership with software company Mysten Labs to collaborate on Sui, which will serve as the team’s Official Blockchain partner. Sui, a Layer…
Venture Capital: Bold, L’Oréal’s Venture Capital Fund, Buys A Stake In Exotic Cosmetic Ingredient Maker Debut
June 2, 2023     News, Venture Capital

L’Oréal’s (EPA: OR) corporate venture capital fund, BOLD, has announced a minority investment in Debut, a US biotech company specializing in the discovery, formulation, and manufacture of novel ingredients and…
Artificial Intelligence: In Flight Simulation, An AI Drone Tries To Kill Its Own Handler
June 2, 2023     Artificial Intelligence, News

During a simulated test at a London summit, an AI-controlled drone turned against its human operator, raising significant ethical concerns. Air Force Colonel Tucker “Cinco” Hamilton shared the incident, which…