The viability of crypto exchange FTX and its effect on its sister business, Alameda Research, are seriously under investigation in the cryptocurrency sector. Much of Alameda’s equity appears to be made up of FTX’s FTT cryptocurrency, as CoinDesk revealed over the weekend. Concerns about a recurrence of the problems that caused three of the biggest names in the sector(Crypto lenders Celsius Network and Voyager Digital, as well as hedge fund Three Arrows Capital) to go bankrupt this year have been raised by the disproportionate portion of FTX’s value tied to an asset issued by a connected entity. BitDAO community is questioning the sudden dump of $bit token caused by Alameda dumping and breaching the 3 yr mutual no-sale public commitment. Nothing is confirmed but the BitDAO community would like to confirm proof of funds from Alameda.FTTT has dropped 40% to $15 in four days. The FTX-Alameda drama began last week after CoinDesk reported that Alameda held large amounts of FTT tokens on its balance sheet. In response, Binance moved to liquidate its FTT holdings, triggering market panic. Responding to Zhou’s tweet, Alameda Research’s CEO Caroline Ellison said, that the dump wasn’t from them and promised to provide the proof of funds once things calm down. Zhou thanked Ellison for the quick response, saying it gave a lot of confidence to the BitDAO community.
LBRY Loses SEC Case, Calls Ruling a ‘Dangerous Precedent’ for Crypto.A year later, the SEC vs LBRY comes to a close as a New Hampshire judge passed a judgment yesterday ruling that LBRY’s sale of its LBC tokens qualified as selling unregistered securities. However, unlike other cases, LBRY did not conduct an ICO. Rather, the SEC sued LBRY when it sold its “pre-mined” LBC tokens in the secondary market to fund its operations and further develop the network.
According to the Court, the evidence in the record shows that LBRY advertised LBC as an investment that would appreciate over time as a result of the company’s creation of the LBRY Network.
The SEC vs. LBRY lawsuit sets a precedent that affects the entire US cryptocurrency business, according to LBRY founder Jeremy Kauffman, who made this statement following the verdict. Nearly all cryptocurrencies, including Ethereum and Doge, are secure according to the SEC vs. LBRY criteria. The United States Congress, a body far worse than the SEC, is now responsible for the future of cryptocurrencies in the US.
Bitcoin mining company Riot Blockchain fell short in the third quarter, missing analyst targets for revenue. Riot posted a net loss of $36.6 million, or 24 cents a share, compared to $15.3 million, or 16 cents a share, from a year earlier, the company said. Revenue dipped 28% to $46.3 million, missing what Bloomberg said was a $54.2 million analyst expectation. Despite the decreasing revenue, Riot is still in relatively strong shape compared to other mining firms. Iris Energy faces default claims, Core Scientific warned it might have trouble paying its debts and Argo said it was in a similar position. Over the past year, most bitcoin mining company stocks tracked by The Block fell as bitcoin traded down, lately falling to around $20,600.