Former FTX CEO Seeks Legal Fee Reimbursement from Insurers
A motion has been filed by Sam Bankman-Fried, the former CEO of FTX on March 15, requesting that Relm Insurance and Beazley Insurance prioritize reimbursing his legal fees and advance future costs in accordance with their policy conditions.
> Directors and officers' (D&O) insurance policies prioritize payments to insured members of the company based on their seniority, and Bankman-Fried’s status as former CEO would put him at the top of that list.
> Although D&O insurance protects individuals from personal losses due to being sued for alleged wrongful acts in managing a company, it typically excludes criminal or deliberately fraudulent activities.
> Additionally, the policy would likely be void if the individual received remuneration to which they were not legally entitled. Continue here
Silicon Valley Bank Collapse
USDC Stablecoin Panic: Investors Pull $3 Billion in Three Days After Silicon Valley Bank Collapse
Investors have withdrawn around $3 billion from the stablecoin USDC over the course of three days, according to a blog post by Circle.
> The sudden outflows were triggered by the news of the collapse of Silicon Valley Bank, which held around $3.3 billion of USDC reserves.
> As a result, the stablecoin broke its dollar peg and plummeted to $0.88 before returning to $1 on Monday.
> To accommodate USDC redemption, Circle established a new banking relationship with Cross River Bank.
> Circle, which owns USDC, processed $3.8 billion in redemptions and created $0.8 billion more of the token from Monday to Wednesday. Details here
FTX Founder Sam Bankman-Fried Received $2.2 Billion in Payments, According to New Management
According to a statement from FTX's new management, the bankrupt cryptocurrency exchange transferred approximately $2.2 billion to founder Sam Bankman-Fried through several entities.
> The company also disclosed that a total of $3.2 billion was paid to Bankman-Fried and other key employees, as listed in a Schedules of Assets and Liabilities and Statements of Financial Affairs filed on Wednesday.
> Director of engineering Nishad Singh, who recently pleaded guilty to fraud and conspiracy charges related to FTX's collapse, received around $587 million.
> Most of the payments were made from Alameda Research, a trading firm owned by Bankman-Fried.
> The disclosed amounts do not account for $240 million spent on luxury property in the Bahamas or direct political or charitable donations. Details here
Binance.US to Acquire Voyager's Assets for $1 Billion, Despite U.S. Government Objections
According to a court filing on Wednesday, a bankruptcy judge has given the green light for Binance.US to acquire Voyager's assets for $1 billion.
> This decision was made despite the U.S. government's attempt to halt proceedings pending appeal. U.S. Attorney Damian Williams argued that the deal should be altered or dismissed because it would absolve Voyager and its staff of any violations of tax or securities law.
> However, Judge Michael Wiles of the Southern District of New York disagreed, stating that the approved deal does not have such implications.
> Furthermore, any delay would harm Voyager clients who have been unable to access their cryptocurrency since the bankruptcy was announced in July 2022. Continue here
Bitcoin Funds Decline as U.S. Bank Failures Spark Concerns of Fed's Liquidity Easing
According to ByteTree Asset Management's data, Bitcoin funds are experiencing an outflow of coins as investors anticipate an early pivot in favor of liquidity easing from the Federal Reserve (Fed) due to the recent U.S. bank failures.
> The number of coins held by spot and futures-focused ETFs in Europe, Canada, and the U.S. has decreased by 16,560 BTC, equivalent to $409 million, this month.
> This decline in the balance of funds implies a lack of institutional participation in Bitcoin's recent rally, despite it being driven by safe-haven demand and hopes of Fed rate cuts. More here
The Bitcoin Opportunity Fund: A New Investment Vehicle for High-Net-Worth Investors
A group of investors is seeking to raise $100 million for a Bitcoin-focused fund, despite the ongoing challenges faced by the cryptocurrency industry.
> The fund, called The Bitcoin Opportunity Fund, targets high-net-worth investors who wish to diversify into Bitcoin and will invest in both public and private Bitcoin-related companies.
> The team is led by six investors, including James Lavish and David Foley, and the fund is described as a "distressed investment" opportunity.
> According to Lavish, "the scandals that have plagued the digital asset industry have created opportunities for distressed investing."
> Specifically, the fund is considering buying up debt belonging to publicly-listed Bitcoin miners that have been trading for "pennies on the dollar." More here
Bitcoin and Other Cryptocurrencies Surge Amid Market Uncertainty, Coinbase Shares Up 5.1%
> Against a backdrop of market uncertainty, Bitcoin's price increased today, coming close to $25,000 as traditional markets closed.
> According to TradingView the cryptocurrency was trading at $24,869, representing a 2.1% increase on the day.
> Other cryptocurrencies also experienced gains, with Ether rising by 0.5% to trade at $1,665, while Binance's BNB token increased by 6.6% after the announcement that Uniswap would be released on the BNB Chain network.
Meanwhile, Polygon's MATIC added 0.8%, but Cardano's ADA saw a decrease of 1.6%.
> As a result of a rise in equities, Crypto-related stocks also experienced gains throughout the day, with Coinbase shares adding about 5.1%, and MicroStrategy and Block increasing by 5.9% and 1.3%, respectively.
The rise in equities was buoyed by the news that distressed bank Credit Suisse had secured a $54 billion line of credit.