Latest FTX: Police Interview Sam Bankman-Fried;  Mysterious Flows

Latest FTX: Police Interview Sam Bankman-Fried; Mysterious Flows

A day after Sam Bankman’s digital asset empire filed for Chapter 11 protection, the Bahamian police interviewed the former crypto tycoon.

A day after Sam Bankman-Fried’s digital asset empire filed for Chapter 11 protection, the former crypto tycoon was interviewed by Bahamian police and regulators, according to a person familiar with the matter.

Analysts say that about $662 million in tokens mysteriously flowed from both international and US FTX exchanges. FTX began moving some of its assets to offline wallets, and later accelerated those moves “to mitigate damage when monitoring unauthorized transactions,” according to US platform general counsel Ryne Miller.

According to investment materials seen by the Financial Times, FTX Trading International held just $900 million in liquid assets on Thursday, versus $9 billion in liabilities.

Former Treasury Secretary Lawrence Summers compared the crash to the demise of energy company Enron Corp. The Securities and Exchange Commission and the Commodity Futures Trading Commission are investigating whether FTX mishandled client funds, according to people familiar with the matter.

(All New York time references)

Binance suspends deposits for FTX’s Token FTT (3:30 AM)

Binance CEO Changpeng “CZ” Zhao said on Twitter: “Binance has suspended deposits from FTT, the FTX token, to “prevent questionable additional supplies affecting the market.” Zhao said he would encourage other exchanges to do the same. Justin Sun said Huobi Global will reiterate Zhao’s advice.

Zhao added that FTT contract publishers moved all remaining FTT supplies of $400 million, “which should open up in batches.” Binance went on to say that it had noticed a “suspicious movement” of a large amount of FTT by token contract publishers.

FTT fell as much as 21% on Sunday to $1.65, although it recovered to around $2 at 8:26 am in London.

Matrixport says 79 clients affected by FTX, ‘no risk of bankruptcy’ (11:38 p.m.)

Crypto financial services platform Matrixport “continues to operate normally and the company is not at risk of bankruptcy in connection with developments in FTX and Alameda,” according to Ross Gann, head of public relations.

Jan said Matrixport has 79 customers who incurred losses through exposure to three FTX-related products on its platform.

Kraken freezes accounts potentially linked to FTX (11:33 PM)

Crypto Kraken exchange said it has frozen access to the Kraken account for some funds suspected of being linked to “fraud, negligence or misconduct” related to FTX. Kraken said in a tweet that it is in contact with law enforcement and plans to resolve each account on a case-by-case basis.

Bankman-Fried Interview by Police in the Bahamas (9:42 p.m.)

Police and regulators in the Bahamas interviewed former crypto mogul Sam Bankman-Fried on Saturday, according to a person familiar with the matter. Bankman-Fried did not immediately respond to a request for comment.

Inquiries from Bahamian authorities add to the mounting legal pressure Bankman-Fried has faced since the collapse of the FTX empire last week. In the US, he faces scrutiny from the Securities and Exchange Commission over whether he violated securities rules.

The Bahamas says it has not allowed local withdrawals by FTX Exchange (9pm)

The move by failed crypto exchange FTX to allow withdrawals in the Bahamas has been called into question by the country’s securities regulator.

The Bahamas Securities Commission said in a statement Saturday that it did not “direct, authorize or propose” to prioritize FTX Digital Markets Ltd’s domestic withdrawals.

She added that such withdrawals can be repaid.

Jump Crypto says it’s still well written after FTX exposure (5:59pm)

Cryptocurrency exchange Jump Crypto told clients Saturday that it remains “well-capitalised” after the FTX exposure. In a series of tweets, Jump said his exposure was “managed in accordance with our risk framework.” The company did not specify the exact nature of its exposure to the collapsing digital asset empire of Sam Bankman-Fried. The Jump guarantee comes after FTX was hit by a mysterious influx of tokens of about $662 million.

FTX Seeks Enforcement Assistance on Unauthorized Withdrawals (1:46 p.m.)

A company executive said FTX is launching an investigation with law enforcement into unauthorized withdrawals from some of its crypto wallets. The company, which filed for bankruptcy this week, said it was cooperating and coordinating with “relevant law enforcement and regulators.”

Volatile Liquid Assets for Liabilities: FT (1:13 pm)

Citing investment materials and a spreadsheet seen by the newspaper, the Financial Times reported that FTX Trading held $900 million in liquid assets for $9 billion in liabilities the day before the bankruptcy was declared. Most of the listed assets are either illiquid venture capital investments or crypto tokens that are not widely traded. The largest assets as of Thursday were listed at $2.2 billion in a cryptocurrency called Serum.

Some FTX employees leave for Hong Kong: Semaphore (11:55 a.m.)

Citing people close to current and former FTX employees in the Caribbean, Semaphore reported that engineers and traders working for FTX and Alameda Research in the Bahamas, where the crypto exchange is based, have left for Hong Kong and elsewhere. The report said Pinkman Fried and most of his inner circle remain in the Bahamas.

Kraken to help investigate unauthorized withdrawals (11:51 a.m.)

Crypto Exchange Kraken said it knows the identity of the attacker who made unauthorized withdrawals from rival FTX platform. Security firm, citing transaction data, said the perpetrator transferred some funds from the Kraken account to the wallet they were using to hold some of the stolen tokens on Saturday. Nick Berkoko, chief security officer, said in a tweet on Twitter that Kraken was then able to identify the attacker by checking its platform for data on the original address.

Crypto Markets Take Their Breath (9:16 am)

The price of the two largest tokens by value, Bitcoin and Ether, was largely unchanged on Saturday, with prices across the crypto-assets largely stable as traders weigh their next moves after the market sell-off and the collapse of one of the largest trading platforms in the industry, FTX. . “We are in the midst of yet another deleveraging event in the cryptocurrency ecosystem, which has so far had a limited impact on broader stock markets beyond sentiment, as crypto institutions have lent to each other,” analysts at Morgan Stanley said in a note on Friday.

Yellen says disaster shows need for organization (5:48 a.m.)

US Treasury Secretary Janet Yellen said the FTX collapse “shows weaknesses” within the sector and that the digital asset market requires “very careful regulation.” She added that digital assets do not currently pose a threat to the broader financial system.

FTX hit with the mysterious stream of about $662 million (3:03 a.m.)

Blockchain analytics firm Nansen, which provided a total estimate of $662 million in withdrawals, said coins poured in from both international and US FTX exchanges. Elliptic said initial indications show that nearly $475 million has been stolen in illicit transactions, with stablecoins and other tokens taken quickly being converted into ether on decentralized exchanges — a “common technique used by hackers in order to prevent it from being taken.”

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