FTX bankruptcy team sues Sam Bankman-Fried
FTX’s bankruptcy team sued former CEO Sam Bankman-Fried over a $250 million deal to buy stock clearing platform Embed, on Wednesday.
The lawsuit claims Bankman-Fried, FTX co-founder Gary Wang and former FTX executive Nishad Singh were aware that sister firm Alameda Research was insolvent when they greenlit the acquisition of Embed, The Block reported.
FTX’s current leadership — tasked with clawing back any funds it can to pay creditors and investors — said Embed was wildly overpriced, and paid for with funds appropriated from customers.
Update: FTX files similar clawback for $236 million against Embed founder Michael Giles. https://t.co/DVpeXJeHTR— FTX 2.0 Coalition (@AFTXcreditor) May 17, 2023
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Bankrupt Voyager gets go-ahead to liquidate assets
Bankrupt crypto lender Voyager could start liquidating its assets as early as Friday, after a judge finalised the case in a Wednesday hearing.
Voyager filed for bankruptcy in July of last year, following the collapse of hedge fund Three Arrows Capital, which the lender was heavily exposed to.
Voyager creditors and customers are estimated to receive up to 36% of their claims.
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SEC calls Filecoin a security, requests Grayscale withdraw application
The US Securities Exchange Commission asked digital asset manager Grayscale to withdraw its application to make its Filecoin Trust more like a public company, CoinDesk reported.
Grayscale revealed the request in a Wednesday, saying the SEC has concerns that the Filecoin Trust “meets the definition of a security.”
The company stated disagreement with the regulator, and said it would respond with a legal explanation for its intentions for Filecoin Trust.
🚨NEW: @Grayscale says the @SECGov has asked it to withdraw an application to launch a $FIL Trust product on the grounds that it might meet the definition of an investment company and that $FIL meets the definition of a security.— Eleanor Terrett (@EleanorTerrett) May 17, 2023
Interesting that the SEC investigated @Filecoin…
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Circle buys $8.7bn in repo agreements ahead of debt ceiling deadline
Stablecoin issuer Circle is rebalancing its reserves by swapping short-term treasuries with a $8.7 billion purchase of overnight repurchase agreements, CoinDesk reported.
The Circle Reserve Fund, the BlackRock-managed fund that oversees $30 billion in USDC stablecoin, has started to shift its reserves as US politicians clash over a looming debt default, which could happen by next month.
NOW READ: Tether to divert up to 15% of profits into Bitcoin in ‘stability’ push
Uniswap contributors weigh Coinbase layer 2 deployment
Three prominent Uniswap contributors have begun discussions for the decentralised exchange to deploy on Coinbase’s layer 2 blockchain Base.
Governance members Michigan Blockchain, she256, and GFX Labs introduced the proposal to integrate with Base on Wednesday. Base is still in its testnet phase.
Citadel Securities sues former employees over alleged trade secret theft
Trading giant Citadel Securities is suing high-frequency crypto trading company Portofino, alleging former employees stole trade secrets.
Citadel said Portofino co-founders Leonard Lancia and Alex Casimo accessed privileged information for months prior to their departures from the company, and implemented it in Portofino’s trading operations.
A Portofino spokesperson called Citadel’s lawsuit “corporate bullying,” and said the company plans to fight the allegations in court.
More web3 news from around the web…
Seizing upon Ledger stumble, hardware wallet competitors offer discounts — Decrypt
Moving up the risk curve: institutional investors cautiously consider ETH’s potential — Blockworks
Crypto murder case from Seoul’s Beverly Hills spurs tighter digital-asset regulation — Bloomberg