ALSO: FTX may have one million creditors, Solana-SBF contagion continues and more |
The biggest crypto news and ideas of the day |
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Hello and welcome to The Node. This is Daniel Kuhn and Xinyi Luo, here to take you through the latest in crypto news and why it matters. In today's newsletter: |
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FTX May Have Over 1M Creditors: A court filing revealed that FTX may have more than one million creditors and its new leadership is in touch with regulators. The document was filed to the federal court late Monday, providing the first true glimpse of FTX's last day before it filed for Chapter 11 bankruptcy. - Meanwhile, the perpetrator of a multi-million dollar hack of FTX on Friday night has converted the stolen funds to DAI stablecoins bridged onto the Ethereum network. The attacker is the 35th-largest owner of ETH, with an ill-gotten bounty of over 288,000 tokens.
- Investigators have reportedly found a papertrail of KYC information linking the attacker to an account on crypto exchange Kraken, after hastily paid TRX token fees.
FTX Fallout Contagion Spreads Across Solana: More than $700 million has exited Solana-based decentralized apps, including many backed by Sam Bankman-Fried, the founder of the bankruptcy FTX crypto exchange and prominent Solana booster. The "total value locked," or TVL, on Solana DeFi has dropped to just over $300 million, while the Solana Foundation itself losing "tens of millions." - Venture firms Multicoin Capital and Sino Global, prominent Solana investors, are reporting multimillion-dollar losses as Liquid Global, which was bought by FTX earlier this year, halts withdrawals.
CFTC Pushes Back Against Amicus Briefs in Ooki DAO Lawsuit: The U.S. Commodity Futures Trading Commission (CFTC) on Monday hit back against four "friend of the court" briefs filed on behalf of Ooki DAO, a decentralized autonomous organization that the CFTC sued in September for allegedly violating federal financial laws. The agency repeated claims the DAO illegally offered leveraged and margin crypto trading products to U.S. investors. - Of particular note, the CFTC is taking aim at the DAO's decision not to wrap itself in a corporate structure.
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Putting the news into perspective |
AI Artwork SBM Sam Bankman-Fried (DALL-E/CoinDesk) Let's Talk About the New York Times' 'Puff Piece' on Sam Bankman-Fried
Following the publication of a New York Times profile that "whitewashes" FTX ex-CEO Sam Bankman-Fried's alleged crimes, D.K. looks at the media's role in his rise and fall. Bankman-Fried built a crypto trading empire grounded in public trust – and has now lost it all. Read the full article here.
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Overheard on CoinDesk TV... |
"It's a confidence crisis in the ecosystem as a whole." —Lex Sokolin, head economist at software company ConsenSys, discussing the impact of FTX's collapse, on CoinDesk TV's "First Mover" |
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- What happened at Alameda Research (milky eggs)
- Sam Bankman-Fried, the disgraced boy king of crypto, explained (Vox)
- Cryptoverse: So long, Solana? Ether rival clobbered by FTX crash (Reuters)
- FTX's Balance Sheet Was Bad (Bloomberg)
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