It’s the final month of 2022, December and while we’re hoping this final month will bring more great news, let’s have a brief outlook on the month of November — a month we can all agree has been quite a ride.
FTX Goes Down Bringing Others With It
The biggest scandal that took over the crypto world by storm has got to be the scandal between FTX and Alameda as well as other stories surrounding SBF — the founder of FTX. Due to the news of misuse of funds, FTX had no other way except for filing for bankruptcy which led to a domino effect that included SBF being investigated by SEC and several crypto companies with close relations to FTX being left under financial crisis.
BlockFi Goes Bankrupt
Amongst those that were hugely impacted by FTX’s bankruptcy was crypto lender BlockFi, which had huge financial ties to FTX. Crypto Brokerage Genesis, who has ties to FTX also had a close call with bankruptcy however with the help of Investment Bank Moelis have been in discussion to seek for options. Meanwhile Singapore-based investment company, Temasek wrote off all their $275Million on FTX Investment to $0.
Other companies that were somewhat impacted by FTX includes Galois Capital, Galaxy Digital, Coinbase and Crypto.com amongst others. Coinbase has however declared that it has a relatively small exposure to FTX whereas Crypto.com have clarified that they have recovered their funds in FTX by early November, declaring that they are still solid.
Binance Set Up Recovery Fund
To assist with the domino effect started by SBF’s misuse of conduct that have hugely impacted a lot of crypto businesses, Binance have committed about $1Billion to the Recovery Fund that they have set up in to assist companies that are in liquidity crisis as a result of the FTX crash.
Joining their effort was Aptos Labs and Jump Crypto who have also committed to contributing $50 million to the Binance-led $1 billion Industry Recovery Initiative (IRI). Binance also noted that they are willing to increase the fund to $2 billion if participation were to increase.
Coinbase Stops Supporting 4 Tokens Upon Low Usage
Last but not least, Coinbase wallet announced that they will no longer be supporting 4 tokens, namely XRP, Bitcoin Cash, Ethereum Classic, and Stellar starting from 5 December 2022 onwards due to low usage.
While Coinbase has insisted that this does not mean that any of their assets will be lost, they have highlighted that users should already make the necessary arrangements to transfer any of the 4 tokens they currently have on Coinbase before the deadline given (5 December 2022).
It has been a whirlwind of a month however things have started to calm down and we still remain hopeful that December will bring an abundance of good news for the crypto world. Regardless, we hope our monthly newsletter have helped keep you informed with the latest happenings in crypto.
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