The head of the largest cryptocurrency exchange, Binance Changpeng Zhao, announced the launch of Binance fund recovery, which will help support cryptoprojects facing a liquidity crisis after the collapse of the cryptocurrency exchange FTX. He announced this on Twitter.
“To reduce the further cascading negative impact of FTX, Binance is forming a Binance crypto recovery fund to help projects that are experiencing a liquidity crisis. More details will emerge soon,” Zhao said, adding that relevant projects can contact Binance Labs, a division of the exchange’s venture capital fund.
In another tweet, Zhao also opened the door for any crypto investors willing to contribute to the fund.
“Also welcome other cash industry players who want to invest in the fund. Cryptocurrency is not going away. We’re still here. Let’s rebuild the industry,” he wrote.
New rules for the crypto industry
Zhao, commenting on the FTX bankruptcy, called for clear rules for the crypto industry to help it grow steadily and reliably. In his view, the crypto space needs new rules now more than ever for the industry to develop properly.
Zhao believes that the crypto world is going through a crisis right now that is similar to the financial crash of 2008. He predicted that FTX’s problems will lead to the bankruptcy of many companies in the next few weeks. Projects close to the FTX ecosystem will be hit the hardest.
Who else is affected
Now more cryptocurrency companies have begun to feel the effects of the FTX collapse. Earlier that week, the situation mainly affected FTX users who could not withdraw their funds from the exchange, and a lot of projects close to the company, in particular Solana. However, it is now clear that the number of affected projects will only grow.
For example, the BlockFi link platform suspended its withdrawal of funds. The company did not disclose the amount of its risk, but users suspect it of insolvency. Projects on the Solana blockchain also faced difficulties. In particular, ATMTA, the studio behind the Star Atlas game meta-universe on the Solana blockchain, reported that it lost half of its funds because of the FTX crash.
Earlier, we reported that FTX CEO Sam Bankman-Fried spoke about the state of the exchange.
Crypto Investors intend to have FTX arrested through protests
Members of the crypto community intend to have FTX founder Sam Bankman-Fried arrested. Crypto trader and youtuber Ben Armstrong addressed this initiative to the crypto industry.
“If Sam [Bankman-Friede] is not arrested by the end of December, I will gather a large group (probably over a hundred people) who lost money [amid the collapse of] FTX. We will go to the Bahamas and protest outside the government building, the Albany Resort [where Bankman-Fried supposedly has real estate] and other [Bankman-Fried] properties until he is arrested,” Ben Armstrong wrote on his microblog asking subscribers who would like to join the initiative to check in under the post.
Many members of the crypto community responded to the trader’s call. For example, the initiative was supported by popular youtuber Dusty BC Crypto. The irony is that earlier Ben Armstrong himself, as a crypto blogger with a million audience, advertised the FTX crypto exchange and its native FTT token.
Some of the subscribers noted that it was time to file regulatory complaints against the crypto blogger himself, as he was involved in attracting investors to FTX. All of these events increase volatility in the cryptocurrency market, so it makes sense for an investor to consider the AMD price chart today.
This isn’t the first time members of the cryptocurrency community have raised the issue that FTX’s creator should be in jail. Some online users speculate that Sam Bankman-Fried could literally buy his freedom. Recall, it was previously revealed that the entrepreneur donated large sums of money to political parties.
Earlier we reported that Binance bought Sakura Exchange BitCoin in Japan.
Hackers stole cryptocurrency worth $3.37 billion since the beginning of the year
In the 11 months since the beginning of the year, hackers stole $3.37 billion worth of cryptocurrency. According to PeckShield, cryptocurrency companies lost $1.3 billion to fraud in the fall alone.
Thus, in September there were 17 hacks, which resulted in losses of $171 million. Marketmaker Wintermute incurred losses of $160 million.
How do hackers steal cryptocurrency?
In October, hackers stole $760.2 million worth of cryptocurrency because of 44 hacking attacks. Then BNB Chain was hacked for $544 million, but the fraudsters could withdraw only $100 million of it – the other part of the funds were blocked by the developers. Then a hacker stole $1 million from the BitKeep cryptocurrency wallet by hacking it through a swap feature. Another hack came on Team Finance’s launchpad, which lost $14.5 million due to a smart contract migration feature bug.
There were 29 hacks in November that stole $391 million in various digital assets. Another $3 million was stolen from Skyward Finance based on the NEAR Protocol. An unknown hacker could “empty the reserves” of the project through a vulnerability in the smart contract. Note that due to global problems in the cryptocurrency market and the high cost of mining, even the NVIDIA price chart went down.
It was also reported that crypto exchange Coinsquare was hacked, but representatives of the company assured that customers’ assets “are safely stored in cold storage and are not at risk.”
Meanwhile, over the three months of the summer, cryptocurrencies suffered about $446 million in hacks. In June, the loss from 21 attacks was $227.76 million; in July, companies suffered losses from 12 hacks worth $10.2 million; and in August there were 18 attacks, which resulted in the loss of $208.5 million.
Earlier we reported that Terra Classic developers are launching an LUNC wallet.
Largest bitcoin miners owe banks $4 billion
Now the largest bitcoin miners can’t pay back loans and give creditors hundreds of thousands of devices as collateral. This is reported by Bloomberg.
After the collapse of FTX crypto exchange, many companies that provided loans to largest bitcoin miners, including New York Digital Investment Group (NYDIG), Celsius Network, BlockFi Inc, Galaxy Digital, and the Foundry (a division of Digital Currency Group) are facing problems due to non-payment of loans.
Loans backed by mining equipment have become one of the most popular financing tools in the industry. Now, however, mining companies are having trouble making payments because of the drop in the bitcoin exchange rate and don’t have the funds to pay back the loans. Lenders cannot seize any assets from them other than cryptocurrency mining devices, the value of which has fallen 85% since last November. Even the Tesla price chart has gone down from that drop.
“We continue to take a cautious approach to risk-based financing in the mining industry. For example, in the third quarter, Galaxy’s mining division closed three existing leases totaling about $8 million,” said Michael Wursthorn, a Galaxy spokesperson.
Lenders are already paying attention to the surplus of mining equipment received after the loans are paid off. They are having to sell the equipment at a big discount or find data centers to mine bitcoins on their own. This surplus means that lenders could face further losses, given how saturated the market for mining equipment already is.
In November, mining company Iris Energy said it would not repay the loan it took out against the equipment and would prefer to develop other business operations instead. It said its two units registered to buy the equipment secured against it were not generating enough cash flow to service the line of credit.
Earlier, we reported that support for OpenSea Binance’s smart chain had appeared.
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