Here’s a quick breakdown of the biggest news stories and developments in the cryptocurrency sector for November 22, 2022.
1. FTX Group has around $1.2 billion in cash, according to court documents
The FTX cryptocurrency exchange and over 100 of its affiliated companies have around $1.24 billion in cash, according to court filings related to FTX’s bankruptcy proceedings. Alameda Research has around $400 million in its bank accounts. Derivatives platform LedgerX has $393.1 million, while FTX Japan K.K has about $171.7 million. However, these cash reserves are far from sufficient to cover FTX’s debts. FTX could have more than 1 million creditors, and owes its 50 largest creditors alone around $3.1 billion.
Due to the firm’s poor transparency, the full scale of FTX’s collapse and the current state of its affiliated companies is still unclear. John Ray III, who has replaced Sam Bankman-Fried as the CEO of FTX, has noted a “complete failure of corporate controls” and a “complete absence of trustworthy financial information” at FTX, calling the situation “unprecedented”.
2. Magic Eden plans to add support for Polygon NFTs
Magic Eden, an NFT marketplace that was originally created for trading Solana-based NFTs, will expand its list of supported blockchains by integrating Polygon. In addition, Magic Eden will be hosting several Polygon-based projects on its Launchpad platform in December. According to a press release from Polygon, Magic Eden users will be able to start trading NFTs using Matic after the platform’s Launchpad for Polygon projects goes live.
Magic Eden co-founder Zhuoxun Yin said that the integration with Polygon will help Magic Eden establish itself as a go-to platform for Web3 gaming. As an efficient EVM-compatible chain, Polygon is a popular choice among game developers that want to incorporate web3 elements into their releases.
Besides Solana and Polygon, the Magic Eden marketplace also supports the Ethereum blockchain.
3. Binance CEO reportedly met with investors in Abu Dhabi to discuss recovery fund for crypto industry
Binance CEO Changpeng “CZ” Zhao reportedly met with investors in Abu Dhabi to discuss a cryptocurrency industry recovery fund. Bloomberg writes that CZ spoke with people affiliated to UAE national security adviser Sheikh Tahnoon Bin Zayed.
A Binance spokesperson said that the meetings were focused on regulations, and the potential for regulators in the Middle East to introduce proof of custody requirements for crypto businesses.
CZ first started talking about a recovery fund after the collapse of the FTX cryptocurrency exchange, saying that the fund would back strong projects that are facing a liquidity crisis. However, the size of the fund and the projects it would provide capital to are still unknown. Reportedly, Binance passed on investing in troubled cryptocurrency lender Genesis, citing potential future conflicts of interest.
4. Gemini says it’s working with Genesis to enable withdrawals from Gemini Earn
The Gemini cryptocurrency exchange, which recently froze redemptions from its Gemini Earn product, says it’s working with Genesis Global Capital and its parent company Digital Currency Group to find a solution that would allow Gemini Earn users to access their funds again.
Gemini was forced to freeze redemptions on its Gemini Earn product due to the liquidity crunch that’s currently affecting Genesis Global Capital, the lending arm of cryptocurrency services firm Genesis. Reportedly, Genesis is currently looking to raise $500 million in funding to address its liquidity issues.
According to Gemini, all of the funds held by the Gemini cryptocurrency exchange and the company’s custody arm are held 1-to-1 and are “available for withdrawals at any time”.
5. Tornado Cash developer Alexey Pertsev will stay in jail until at least February 20, 2023
Tornado Cash developer Alexey Pertsev, who was arrested by Dutch authorities in August, will be staying in jail at least until February 20 next year, with a Netherlands court saying he represented a flight risk. Pertsev has been charged with money laundering.
Tornado Cash is a protocol on the Ethereum blockchain that allows users to obfuscate the origins of their cryptocurrency. As a decentralized protocol, Tornado Cash can be used by anyone on the Ethereum blockchain. While Tornado Cash provides a valuable service to everyday users who wish to protect their privacy while using Ethereum, the protocol is also commonly used by hackers to essentially launder stolen ETH. Tornado Cash was sanctioned by OFAC in August this year.