Tags: Ftx Collapse

IRS Deals Devastating Blow to FTX With $24 Billion Tax Claim, Crypto Exchange Pushes Back

Kraken Co-Founder Criticizes Venture Capitalists for Enabling Fraud at FTX

Sam Bankman-Fried‘s Legal Team Raises Concerns Over Trial Preparations

Binance is looking to reduce clients’ concerns about keeping their funds with exchanges after the collapse of FTX.

Sam Bankman-Fried leaving court on February 16, 2023 (Liz Napolitano/CoinDesk)

Jason Weinstein (Shutterstock/CoinDesk)

(Shutterstock)

Auros Global, the trading firm that lost $20 million in FTX’s implosion, was released from provisional liquidation by a British Virgin Island court after major debt restructuring and the investment led by TradFi trading firm Vivienne Court and bitcoin miner Bit Digital.

The Caribbean arm is a mere shell to further Sam Bankman-Fried’s fraud, the company alleged.

Some of the services provided by Silvergate will migrate to other banks such as Signature Bank, Provident Bancorp, Metropolitan Commercial Bank and Customers Bancorp, the report said.

The agreement requires approval from a Delaware bankruptcy court as the failed exchange seeks to raise funds for creditors.

FTX’s bankruptcy proceeding has teams of lawyers, investment bankers, consultants, and financial advisers working on the case.

An independent investigation could cost as much as $100 million, the federal court in Delaware has previously been warned.

The fund’s performance was severely impacted by direct exposure to now-bankrupt crypto exchange FTX and holdings in FTT and Solana-based tokens.

Decentralized exchanges have an intriguing road ahead amid the wreckage of FTX.

The episode highlights yet another chokepoint for the blockchain industry: It‘s become harder for crypto startups to enlist big accounting firms to do audits and asset attestations.

Singh pleaded guilty to fraud and conspiracy charges filed by the Department of Justice earlier on Tuesday.

The firm, which managed as much as $400 million in 2021, had half of its equity parked on FTX before it collapsed.

Federal Judge Lewis Kaplan warned Sam Bankman-Fried that he could hold a hearing to revoke the FTX founder’s bond should SBF continue violating court orders.

FTX Digital had bank accounts with a balance of $219 million, a report by PriceWaterhouseCoopers staffers said.

Auros Global has missed its payments on decentralized finance loans since November, citing funds frozen on the collapsed crypto exchange FTX.

Representatives for FTX said whether assets belong in the Bahamian estate or in the U.S. estate remain open issues.