Crypto News Headlines (15-Nov-2022)

Following the FTX bankruptcy last week, executives from Binance and Ripple, among others, testified in front of the U.K. Parliament Treasury Committee.

Present were committee chair Harriet Baldwin – a conservative member of parliament – along with other members of that committee. Testifying were Daniel Trinder, vice president of government affairs of Europe at Binance, Susan Friedman, head of policy at payments network Ripple, Ian Taylor, executive director of lobby group CryptoUK and Tim Grant, head of Europe at Galaxy Digital.

“This is the exchange collapsing Ian, must feel a bit awkward coming in talking to us after last week,” Baldwin said. She also fired off other questions to the group, such as if the events surrounding FTX undermined confidence in what they do for a living.

The metaverse and its future adoption continue to be a matter of active research by market forecasting companies. A report issued on Nov. 11 by Technavio, a market research firm, has determined that the market size of the metaverse initiatives related to entertainment will grow to reach $28.92 billion in the period from 2021 to 2026.

The report identified two key areas that will fuel this growth, including the rising consumer spending on virtual concerts and virtual events, made possible by the growing advancements in virtual reality (VR) and augmented reality (AR) technologies. The second key factor is the rising adoption of online gaming, which, combined with the aforementioned technologies, offers a level of immersion that will encourage spending in this area.

More than a million creditors could have claims against bankrupt exchange FTX, new court filings reveal.

In a document submitted to bankruptcy court in Delaware, FTX’s lawyers argued for a modification to usual rules to reflect the large number of entities who are owed money in the case.

“As set forth in the Debtors’ petitions, there are over one hundred thousand creditors in these Chapter 11 Cases,” the filing reads. “In fact, there could be more than one million creditors in these Chapter 11 Cases.”

Bankruptcy rules usually stipulate that a debtor should file a list of the 20 people who hold the largest unsecured claims against it, but FTX’s lawyers have proposed instead submitting a “Top 50 List” of creditors by Friday.

The bitcoin market has recently awakened from a prolonged slumber, putting bears in the driver’s seat. That’s the message from experts studying chart patterns, who now see a high chance of bitcoin sliding to $14,000 or below.

The top cryptocurrency fell 22% last week, hitting a two-year low of $15,600 as FTX’s collapse dented investor confidence. The decline marked a downside break of months of horizontal or sideways trading above $18,000, opening doors for a notable sell-off.

“From a technical perspective, bitcoin has now broken below $18,000, which was an area of support in recent weeks. The next levels to watch are $13,500, the 2019 high, and $12,500 (the 3Q20 high),” strategists at Morgan Stanley wrote in a note to clients on Friday.

Charities accepting crypto donations are setting themselves up for an entirely new demographic of funders — who just so happen to be one of the most giving, according to charity organizations.

Alex Wilson, the co-founder of The Giving Block — a crypto donation platform providing back-end support to charities — told Cointelegraph that the crypto community is still a market many charity organizations have not interacted with.

The top charity organizations in the world by funds received including United Way Worldwide, Feeding America, and UNICEF. All three of them accept cryptocurrencies as a means of donation.

The Giving Block co-founder said the crypto community has been great with the “philanthropic use” of cryptocurrency, and those crypto donors are also some of the “most generous” — with the average gift being over $10,000.

Bitcoin mining company TeraWulf (WULF) raised $17 million in capital in the third quarter, but its liquidity remains at $4.5 million, according to a statement on its third quarter earnings released after the market close on Monday.

The $17 million came from $9.5 million in equity from existing investors and $7.5 million of incremental proceeds under a term loan. The Monday statement said that $138.5 million of principal under the term loan was outstanding at the end of the quarter.

Cash flow has proven to be a key determinant of miners’ ability to navigate the bear market, with some major miners facing liquidity crises that could even lead them to bankruptcy.

Tesla, Spacex, and Twitter chief Elon Musk commented on the future of bitcoin Monday. Responding to a Twitter user asking about where the price of the cryptocurrency will be in another year given that the crypto is currently trading at about $16K, down from about $69K a year ago, Musk wrote: “BTC will make it, but might be a long winter.”

Musk’s comment may have boosted the price of bitcoin. Immediately after he tweeted, the price of BTC soared sharply from below $16K. At the time of writing, bitcoin is trading at $16,987.

The billionaire, who recently acquired social media giant Twitter, previously revealed that he personally owns bitcoin, as do Tesla and Spacex. Tesla’s latest financial filings with the U.S. Securities and Exchange Commission (SEC) showed that the company is holding about $218 million in digital assets. In July, the electric car company sold 75% of its BTC holdings.

Sino Global, a blockchain and digital assets-focused investment firm, today revealed losses suffered due to its exposure to the collapsed crypto exchange FTX, however, insists it continues operations “as normal.”

“Our direct exposure to FTX exchange was confined to mid-seven figures held in custody. Our investment into the equity of FTX was made prior to the launch of our fund, and we did not invest any LP capital into FTX,” Sino Global said in a statement shared on Twitter.

Based in Nassau, Bahamas, Sino Global invested in both FTX and its U.S. arm, according to the company’s website.

According to analysis from Arkham Intelligence, a crypto-intelligence platform, claims that the mysterious hacker of the bankrupt crypto exchange FTX is likely the insider of a blockchain expert holding $339 million in digital assets.

We are now 3 days deep into the attack on FTX.So far, Paxos has blacklisted 4 addresses, and the attacker has repeatedly bridged to and from multiple different networks.What will the FTX attacker do next?An update on their current token balances and actions so far

— Arkham | Crypto Intelligence (@ArkhamIntel) November 14, 2022

Arkham discovered that wallets linked to the attackers were holding $292 million worth of ETH, $48 million worth of DAI, $44 million worth of BNB, $4 million worth of USDT on Avalanche and $3.8 million on the Polygon Matic MATIC Bridge.

Around $20 million in Paxos stablecoin, PAXG, has been frozen, and Paxos has been ordered by US authorities to blacklist the accounts, preventing holders from transferring or withdrawing cash from the token.

While SBF refuses to interact with Crypto Twitter, the same community he once called home, he was featured in New York Times trying to explain the sequence of events that led to the fall of FTX.

When the world realized the fraud Sam Bankman-Fried (SBF) committed to building his FTX empire, fellow entrepreneurs, investors and long-time believers unanimously acknowledged the damage caused to the credibility of the crypto ecosystem. On the other hand, mainstream media — that predominantly attacked crypto via negative speculations — has seemingly taken sides with SBF while paying no heed to the losses exceeding billions of dollars incurred by the general public.

While SBF refuses to interact with Crypto Twitter, the same community he once called home, he featured in a New York Times (NYT) article on Nov. 14, trying to explain the sequence of events that led to the fall of the crypto exchange FTX. Surprisingly, the article’s tone did not resonate with the community, as many suspected a bias given SBF’s strong ties with United States politics.