SBF faces investor lawsuit within the US as Australia suspends FTX operations; LFG spent $2.8B on UST peg protection

The most important information within the cryptoverse for Nov. 16 contains Gemini halting withdrawals on its Earn program, Coinbase saying it has zero publicity to Genesis Buying and selling, and Messari estimating that FTX traders could get again as much as 50% of their funds after chapter course of.

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Gemini Earn halts withdrawals due to ‘market turmoil’ caused by FTX fallout

The ripple impact of the FTX collapse has compelled U.S.-based crypto alternate Gemini to pause withdrawals on its Earn program. In keeping with Gemini, its lending accomplice Genesis World is now not in a position to course of buyer redemption on account of an growing liquidity disaster.

Nevertheless, Gemini claimed that solely the Earns program was affected, because it maintains a full reserve for purchasers’ funds for different services and products.

Gemini down due to Amazon Web Services EBS outage; exchange working on restoring functions

Earlier on Nov. 16, buying and selling companies on Gemini have been halted. The crypto alternate claimed it had skilled an Amazon Internet Companies outage which affected its database and alternate operations.

In keeping with Gemini’s status web page, wire transfers are nonetheless unavailable, nevertheless, the alternate claims that prospects’ funds are protected.

Coinbase says it has no exposure to Genesis, touts ‘strong capital position’

Following Genesis’ insolvency points as a result of FTX collapse, Coinbase stated it has no publicity to Genesis. Coinbase reportedly holds $1.5 billion of its capital on Chainlink and the opposite as Bitcoins.

Nexo says ‘real time audit’ error caused by technical malfunction, will be fixed soon

Crypto lending platform Nexo has a real-time audit operate (Armanino) that shows its whole property and liabilities situation per day. Sadly, the audit was not up to date as anticipated on Nov. 16, which sparked rumors that the corporate could also be going through insolvency.

Nevertheless, a Nexo consultant advised CryptoSlate that the audit delay was on account of a technical malfunction in Armanino’s design. Nexo confirmed that the group was working to resolve the error and automate the audit attestation to operate as regular.

Audit reveals Luna Foundation Guard spent $2.8B to defend UST peg in May

Terra Luna’s audit report published by JS Held revealed that the Luna Foundation Guard and Terraform Labs spent about $2.Eight billion and $613 million respectively, to defend the UST peg.

The Luna Basis stated that the audit report confirmed that the funds weren’t embezzled as rumors had it. Do Kwon added that Terra’s failure is totally different from that of FTX, the place the operators misused prospects’ funds.

SolChicksNFT CEO, COO leaked messages confirm up to $20M treasury fund loss

On-chain sleuth ZachXBT called out SolChicksNFT CEO and COO for failing to tell the group a couple of $20 million treasury fund loss on account of publicity to the collapsed UST.

In response, COO Lewis Grafton stated it had disclosed the loss to its largest personal holders. His response didn’t go down nicely with ZachXBT who took the selective disclosure as a discriminatory act towards retail traders.

Messari estimates up to 50% of FTX user funds recoverable

Messari Analysis Analyst Kunal Goel leveraged information from Monetary Instances to estimate that customers who misplaced cash to the FTX collapse could obtain as much as 50% of their funds when the chapter course of is over.

In keeping with the steadiness sheet breakdown, FTX’s whole property and liabilities stand at $4,109 million and $8,859 million respectively, bringing the ratio of whole property to prospects deposit to equal 0.49 (roughly 50%).

DeFi protocol Oxygen held 95% of supply on FTX

Solana-based prime brokerage platform Oxygen Protocol is on the breaking point as a good portion of its ecosystem liquidity is trapped on FTX.

Oxygen confirmed that it held 95% of its MAPS and OXY tokens on the bankrupt crypto alternate.

Bitfarms sold more Bitcoin than it mined in Q3

In keeping with Bitfarms’ third-quarter report, the bitcoin mining agency mined 1,515 BTC over the interval. Nevertheless, it offered about 2,595 BTC to repay a few of its money owed.

An investigation by mining analyst Jaran Mellerud revealed that Bitfarm’s whole bitcoin holdings of two,064, is about 141% of its mortgage. Within the occasion that BTC’s value fell beneath $14,200, Mellerud fears that Bitfarm’s mortgage might be liquidated, which can threaten its continuous operation.

US financial committee to hold hearing on FTX collapse in December

The USA Home Committee on Monetary Companies has called on Sam Bankman-Fried, Alameda Analysis, Binance, FTX, and associated entities to deliberate on the FTX collapse and its penalties for the entire crypto ecosystem.

The committee added that it’ll work to carry dangerous actors accountable in order that accountable gamers can construct a extra inclusive monetary system.

FTX collapse: 3AC co-founder Kyle Davies says ‘we’re looking forward to justice’

Co-founder of bankrupt Three Arrows Capital (3AC) Kyle Davies confirmed up on CNBC to say that the FTX empire contributed to 3AC’s collapse. Davies claimed that Alameda had counter-traded and liquidated 3AC’s place.

Davis added that Sam Bankman-Fried knew concerning the sick offers, however selected to hide loads of issues. Nevertheless, the 3AC founder stated his firm is trying ahead to justice.

Information from across the Cryptoverse

FTX Australia suspended

The Australian Securities and Investments Fee (ASIC) has moved to droop FTX’s operation within the area. The fee said that it’ll withdraw FTX’s AFC license by Dec. 19, 2022.

Binance secures license in Abu Dhabi

Binance has received the monetary service permission (FSP) license to supply its crypto companies to purchasers in Abu Dhabi.

In an identical growth, Binance CZ confirmed that his alternate has signed Eight new funding offers for some crypto initiatives.

Sam Bankman-Fried sued in US courtroom

Former FTX founder Sam Bankman-Fried has been sued by traders who declare that the alternate’s yield-bearing crypto accounts violated Florida legal guidelines, in keeping with Reuters.

Crypto Market

Within the final 24 hours, Bitcoin (BTC) decreased by 1.49%  to commerce at $16,576, whereas Ethereum (ETH) declined by 3.38% to commerce at $1,210.

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