It’s time for crypto fans to stop supporting cults of personality

Many of the centralized cryptocurrency platforms that collapsed this year had something in common: a young, outspoken and cocky leader. Each gained outsized influence not by virtue of outsized intellect or talent but because of their piles of money and large Twitter followings. And each time, misplaced trust in their abilities resulted in disastrous consequences.  If crypto wants to avoid similar catastrophes in the future, it’s time for us to rearrange our leadership priorities. We need to ditch the cults of personality. The theater of crypto on Twitter Before FTX…

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FTX leadership pressed for information by US subcommittee chairman

The former and current CEOs of the bankrupt FTX cryptocurrency exchange have been pressed by the chair of a United States House subcommittee calling for documents relating to the exchange’s finances. “FTX’s customers, former employees, and the public deserve answers,” Raja Krishnamoorthi, Chairman of the Subcommittee on Economic and Consumer Policy wrote in a Nov. 18 letter addressed to both former FTX CEO Sam Bankman-Fried and the exchange’s current CEO John J. Ray III, who took over in the wake of FTX’s bankruptcy filings. Krishnamoorthi added the subcommittee was “seeking…

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Ontario Teachers’ Pension Fund Writes Down Entire Investment in Bankrupt Crypto Exchange FTX Citing ‘Potential Fraud’

Ontario Teachers’ Pension Plan (OTPP), one of the largest pension plans in the world, is writing down its investment in the bankrupt crypto exchange FTX. “Recent reports suggest potential fraud conducted at FTX which is deeply concerning for all parties,” the plan states. Major Canadian Pension Plan Writes Down FTX Investment Ontario Teachers’ Pension Plan (OTPP), Canada’s third largest pension fund, issued a statement Thursday regarding its investment in the collapsed cryptocurrency exchange FTX. The OTPP, which currently has about C$243 billion ($182 billion) in net assets, invests for 333,000…

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Conflicting Reports Emerge About SEC Helping Bankrupt Crypto Exchange FTX With Legal Loopholes

The U.S. Securities and Exchange Commission (SEC) reportedly met with crypto exchange FTX and former CEO Sam Bankman-Fried several times before the crypto firm filed for bankruptcy. SEC Chairman Gary Gensler was rumored to be helping FTX with legal loopholes. However, a new report indicates a contradicting viewpoint. Gensler’s Meeting With Sam Bankman-Fried and FTX Following the bankruptcy filing of cryptocurrency exchange FTX, rumors have surfaced accusing the chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, of helping former FTX CEO Sam Bankman-Fried and his bankrupt exchange…

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Former US Treasury Secretary Larry Summers Compares FTX Collapse to Enron Fraud

Former U.S. Treasury Secretary Lawrence Summers has compared crypto exchange FTX to Enron, noting that the case is a classic fraud rather than the complexities of cryptocurrency regulation. He said the regulatory community ought to draw two lessons from the collapse of FTX. Larry Summers Compares FTX to Enron Former Treasury Secretary Lawrence Summers shared his view on the need for cryptocurrency regulation following the collapse of Sam Bankman-Fried’s FTX crypto empire in an interview with Bloomberg Television Friday. Summers served as the U.S. Secretary of the Treasury from 1999…

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SBF tells investors FTX needs $8B in emergency funding: WSJ

Sam Bankman-Fried has reportedly asked investors for $8 billion in emergency funding to cover a shortfall caused by the flood of withdrawal requests to his crypto exchange in recent days. According to a report in the Wall Street Journal (WSJ) citing “people familiar with the matter,” the CEO reportedly made the request to investors in a Nov. 9 call where he outlined ways to help solve FTX’s financial woes. [embedded content] The source suggests that Bankman-Fried is looking to raise $3 billion to $4 billion in equity and that the exchange…

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Binance Proof-of-Reserve pledge gains support following FTX crisis

Following the liquidity crisis and acquisition of cryptocurrency exchange FTX, Binance CEO Changpeng “CZ” Zhao said his exchange will soon start a Proof-of-Reserves audit system to allow verification of its digital asset holdings. In a Nov. 8 Twitter post, Zhao pledged to implement a Proof-of-Reserve mechanism at Binance to provide “full transparency” through the use of Merkle Trees — a data structure used to encode blockchain data more efficiently and securely. All crypto exchanges should do merkle-tree proof-of-reserves. Banks run on fractional reserves.Crypto exchanges should not.@Binance will start to do proof-of-reserves…

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Crypto Exchange Binance Dumping All FTX Tokens on Its Books — CEO Cites ‘Recent Revelations’

Binance is dumping all of its FTX token (FTT) holdings “Due to recent revelations that have come to light,” CEO Changpeng Zhao has confirmed. “Regarding any speculation as to whether this is a move against a competitor, it is not,” he added. “Our industry is in its nascency and every time a project publicly fails it hurts every user and every platform.” Binance Liquidating All FTX Tokens on Its Books The CEO of global cryptocurrency exchange Binance, Changpeng Zhao (CZ), announced via Twitter Sunday that his exchange is liquidating all…

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FTX exec revealed as big donor to Oregon Democrats following misidentification

A senior FTX executive has been revealed as the reported mystery donor behind a massive $500,000 contribution to the Democratic Party of the American state of Oregon. According to local reports, the Oregon Democrats initially told state election officials that the $500,000 donation was from Prime Trust, a crypto-focused fintech in Nevada. However, on Nov. 1, the party director revealed the true source behind the donation was FTX Engineering Director Nishad Singh, who has been the state Democratic Party’s fourth largest donor since Nov. 2020.  Apparently, there was initial confusion…

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FTX Founder Sam Bankman-Fried Thinks Bitcoin Has No Future as a Payments Network

Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, has given his take regarding the future of Bitcoin’s usage. Bankman-Fried stated he doesn’t believe that Bitcoin will work as a payments network, due to its limited capability for scaling to fulfill this task. However, he believes it might become “an asset, a commodity, and a store of value.” Sam Bankman-Fried on Bitcoin as a Payments Network FTX founder Sam Bankman-Fried has given his opinion about where bitcoin is going and the real value of its structure in the…

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