FBI Plans To Extradite FTX Bankman-Fried From Bahamas As Contagion Spills To Genesis?
As Daily Mail reports, FTX’s former CEO Sam Bankman-Fried could be
facing extradition. After more and more shocking details about FTX,
Alameda and their leaders came to light in recent days,
Bankman-Fried is facing extradition by the FBI, according to the
latest reports. Already on Monday, it was revealed that the U.S.
Department of Justice (DOJ) has teamed up with officials from the
Securities and Exchange Commission (SEC) and the Commodity Futures
Trading Commission (CFTC) to investigate FTX’s business practices.
Specifically, the regulators’ focus is on how FTX handled customer
funds while trying to prop up its sister firm, Alameda Research. In
order to interrogate Bankman-Fried in this regard, U.S. and
Bahamian authorities are currently discussing the possibility of
bringing the FTX founder to the United States, according to
Bloomberg News, citing three people familiar with the matter.
BREAKING: FBI to extradite SBF to the U.S – DailyMail About time! —
Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) November 16, 2022 Is FTX
Contagion Taking Hold Of Genesis Trading Today? Several crypto
firms have already disclosed their exposure to FTX and Alameda.
While some are simply writing off the losses to zero, other firms
have been hit harder. BlockFi has halted all withdrawals and is
preparing for bankruptcy unless it recovers its funds from SBF.
Related Reading: Bitcoin Investors Become Wary Of Crypto Exchanges
Following FTX Crises However, things could also look critical for
Genesis Trading. The broker had made public that its derivatives
business had $175 million stashed in an FTX trading account, which
is now gone. As a result, the industry giant and Genesis’ parent
company, Digital Currency Group, has reportedly promised a $140
million capital infusion to bolster its balance sheet. An email
from Genesis to its customers states: While the operation of our
lending and trading businesses has not been impacted by recent
market events, Genesis has taken steps to strengthen its balance
sheet with an additional equity infusion of $140M from our parent
company, Digital Currency Group. However, Autism Capital, a Twitter
channel that has received strong attention in the wake of the FTX
collapse due to its proximity to the events, is warning of another
hard blow to the crypto industry. Related Reading: Bitcoin Price
Stuck Below $17K, What Could Spark A Decent Increase The Twitter
user reports, citing “semi credible rumors” that Genesis may have
solvency problems. They are having a call with their creditors
tomorrow at 8 AM EST to explain the situation. If true, they may
possibly be dissolving ETHE and GBTC to pay back their lenders. We
will know more tomorrow. We are aware that Grayscale controls GBTC
and ETHE, not Genesis. DCG (the parent company of Genesis and
Grayscale) is backstopping Genesis, and dissolving the trusts may
be necessary if there is a solvency issue, and if it is big enough.
At presstime, the Bitcoin seemed unfazed by the rumors and was
trading at $16.596. Levels of importance for Bitcoin are
$17.3K and $18K to the upside as well as $14K and $16.5k to the
Historical Stock Chart
From Jan 2023 to Feb 2023
Historical Stock Chart
From Feb 2022 to Feb 2023