FTX Used Customer Funds To Fund Risky Bets, Leading To Its Downfall: Report

Cryptocurrency exchange FTX used customer assets worth billions of dollars to support risky trading bets by its sister trading firm, Alameda Research, which ultimately led to the exchange's collapse, according to a report. Quoting an anonymous source, a Wall Street Journal report states that FTX chief Sam Bankman-Fried, last Monday, disclosed to an investor that Alameda Research owes FTX $10 billion and that the beleaguered cryptocurrency exchange lent its sister firm users funds for risky trading purposes. The source quoted Bankman-Fried terming this decision as a “poor judgment call.”

Kim Kardashian, Floyd Mayweather Jr may win lawsuit for endorsing EthereumMax

After a court tentatively dismissed the case, reality TV star Kim Kardashian appears to be winning an investor lawsuit against her and other celebrities over their sponsorship of the cryptocurrency EthereumMax (EMAX). In a January complaint, Kardashian was named along with former boxer Floyd Mayweather Jr. and NBA Hall of Famer Paul Pierce as those who hyped EMAX tokens to get investors to pay more for them. In order to settle accusations connected to her promotion of EMAX, in which she had not disclosed receiving a $250,000 payment, Kardashian paid the SEC $1.26 million last month.

Crypto Exchanges Line Up To Provide Proof Of Reserves

At least nine cryptocurrency exchanges have come forward to provide proof of fund reserves as the market remains rattled amid insolvency fears after the collapse of FTT, the native token of FTX. Nine exchanges, including Binance, Gate.io, KuCoin, Poloniex, Bitget, Huobi, OKX, Deribit, and Bybit — have independently announced that they will publish their Merkle tree reserve certificates in order to promote transparency over the previous 24 hours. Binance CEO Changpeng Zhao on Tuesday urged exchanges to “do Merkle-tree proof-of-reserves,” as he announced that his crypto exchange will start the process soon to ensure transparency among investors.

Amid crypto rout, 95% Coinbase users flock to buy Bitcoin

Amid the chaos which wiped out over $100 billion dollars overnight from the cryptocurrency market, led by an epic fall in the price of Bitcoin which made a low of $15,742 on Wednesday, 95% of Coinbase users are lapping up the world’s largest digital currency. Currently, 95% of Coinbase users are buying Bitcoin. In other words, 95% of Coinbase customers have increased their net position in Bitcoin over the past 24 hours through trading,” the report stated.

FTX Looking At Kraken For Help, But Jesse Powell Sees Red Flags

Even as beleaguered cryptocurrency exchange FTX struggles to stabilize its financial woes, the company has reached out to its rival exchange Kraken, where a “potential deal” is being discussed. Other facts surrounding the terms of the potential agreement are unknown including, whether FTX is looking for a complete acquisition or a sizable loan to stabilize its books, according to an Axios report. Kraken co-founder and departing CEO Jesse Powell meanwhile has highlighted that he sees several red flags in FTX’s business model.  

FTX.US Warns Users Trading May Be Halted In Coming Days

FTX.US, the American arm of beleaguered cryptocurrency exchange FTX, on Wednesday warned users that trading may be halted on the bourse at any time and that users should close down any open position they might have. “Trading may be halted on FTX US in a few days. Please close down any positions you want to close down. Withdrawals are and will remain open. We will give updates as we have them," according to a banner announcement on the exchange's website. The announcement comes at a time when FTX chief Sam Bankman-Fried has repeatedly emphasized that FTX.US is distinct from FTX and is in sound financial standing.

Bitcoin, Ether, and other major cryptocurrencies stage mini rally after rout

> The world’s largest digital currency Bitcoin and the second largest, Ethereum, staged a mini rally after two days of ruthless selling pressure, with the former trading up around 8% and the latter up by about 13% respectively.
> While Bitcoin stabilized around the $17,600 mark, Ether reclaimed the psychologically important $1,300 level.
> Other major cryptocurrencies like Binance, Ripple, Cardano, Polygon, and Solana traded up 12%, 14%, 12%, 33%, and 30%, respectively.
> After the CPI report for October suggested that U.S. inflation may finally be starting to slow down, the cryptocurrency market recouped some of its losses to trade in the green.
>According to the Bureau of Labor Statistics most recent data, the consumer price index increased 7.7% during the previous 12 months.
> While well above the Federal Reserve’s 2% inflation target, it is a step in the right direction from September’s 8.2% number.