Market Update: November 17, 2022

  /  2 minutes read

FTX CEO, Sam Bankman-Fried Sued by US Crypto Investors

A class-action lawsuit was filed against FTX CEO, Sam Bankman-Fried, by US crypto investors and paid celebrity promoters, including NFL quarterback Tom Brady, comedian Larry David, tennis player Naomi Osaka, and NBA team the Golden State Warriors, for false promotion of FTX yield-bearing accounts (YBAs). Oklahoma resident and FTX YBA holder Edwin Garrison filed a suit on Tuesday in Miami on behalf of other account holders. The plaintiffs said in their complaint that “the deceptive FTX platform maintained by the FTX Entities was truly a house of cards, a Ponzi scheme where the FTX Entities shuffled customer funds between their opaque affiliated entities, using new investor funds obtained through investments in the YBAs and loans to pay interest to the old ones and to try to maintain the appearance of liquidity.”

According to a source familiar with the plans, Binance.US, the American division of the largest cryptocurrency exchange in the world, is getting ready to make an offer for Voyager Digital. Following FTX’s bankruptcy filing last week, Voyager announced that the company’s bidding process had been reopened. According to rumours, Wave Financial and Cross Tower are candidates. In a statement to CoinDesk, Binance Chief Communications Officer Patrick Hillmann stated that the company “is not seeking to be the “white knight” of cryptocurrency.”

Redeeming securities and originating new loans have been temporarily halted by Genesis Global Capital, the lending arm of Genesis Global Trading. As investors thought about the most recent disaster to hit the cryptocurrency business, bitcoin dropped roughly 1.5% over the last 24 hours to trade at about $1,600. The majority of other significant cryptocurrencies were down, with FTX’s FTT token down more than 14%.

That’s it for today, see you tomorrow

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