https://www.scmp.com/rss/514548/feed The world’s second-largest cryptocurrency exchange collapsed in November 2022, putting its leaders, including 30-year-old founder Sam Bankman-Fried, into the headlines and under the legal spotlight. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Eunice Xu Eunice Xu In late 2022, Syed Musheer Ahmed packed his bags and departed Hong Kong. The founder of fintech advisory firm FinStep Asia headed for Dubai, where he joined the founding team of the Gulf city’s new digital-asset regulator, Virtual Assets Regulatory Authority (VARA). Like many in Hong Kong’s crypto scene at the time, Ahmed was drawn by the Middle East’s regulatory clarity – a stark contrast to the uncertainty and Covid-19 restrictions still lingering in his adopted home. “Dubai came up as a good... https://www.scmp.com/tech/blockchain/article/3347286/will-hong-kongs-regulatory-clarity-crypto-forge-path-global-hub-status?utm_source=rss_feed https://www.scmp.com/tech/blockchain/article/3347286/will-hong-kongs-regulatory-clarity-crypto-forge-path-global-hub-status?utm_source=rss_feed Sat, 21 Mar 2026 04:00:08 +0000 Bloomberg Bloomberg Shares of Coinbase Global and other firms linked to cryptocurrencies were hammered this quarter, as growing concerns about the US economy weighed on digital assets. Coinbase fell 31 per cent in the worst quarterly performance since FTX collapsed near the end of 2022. Nearly every major crypto-linked stock plunged alongside it, from conglomerate Galaxy Digital Holdings to miners such as Riot Platforms and Core Scientific. Things have not been much better in cryptocurrency markets, with bitcoin... https://www.scmp.com/tech/tech-trends/article/3304777/us-cryptocurrency-exchange-coinbase-sees-worst-quarter-ftx-collapse?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3304777/us-cryptocurrency-exchange-coinbase-sees-worst-quarter-ftx-collapse?utm_source=rss_feed Tue, 01 Apr 2025 10:17:13 +0000 Bloomberg Bloomberg US president-elect Donald Trump is planning to release an executive order elevating cryptocurrency as a policy priority and giving industry insiders a voice within his administration, according to people familiar with the plans. The order is expected to name crypto as a national imperative or priority – strategic wording intended to guide government agencies to work with the industry, according to people familiar with the matter. It was also slated to create a crypto advisory council to advocate... https://www.scmp.com/tech/blockchain/article/3295144/trump-plans-make-cryptocurrency-national-priority-executive-order-sources-say?utm_source=rss_feed https://www.scmp.com/tech/blockchain/article/3295144/trump-plans-make-cryptocurrency-national-priority-executive-order-sources-say?utm_source=rss_feed Fri, 17 Jan 2025 05:30:07 +0000 Reuters Reuters Do Kwon, the South Korean cryptocurrency entrepreneur behind two digital currencies that lost an estimated US$40 billion in 2022, pleaded not guilty on Thursday to US criminal fraud charges after being extradited from Montenegro this week. Federal prosecutors in Manhattan on Thursday unsealed a nine-count indictment charging Kwon, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, with securities fraud, wire fraud, commodities fraud and money laundering... https://www.scmp.com/news/world/united-states-canada/article/3293212/former-cryptocurrency-executive-do-kwon-appear-us-court-criminal-fraud-charges?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3293212/former-cryptocurrency-executive-do-kwon-appear-us-court-criminal-fraud-charges?utm_source=rss_feed Thu, 02 Jan 2025 17:13:19 +0000 Reuters Reuters Former cryptocurrency executive Gary Wang, who unwittingly wrote the computer code that helped FTX founder Sam Bankman-Fried steal about US$8 billion from customers of the now-bankrupt exchange, was spared prison time by a judge on Wednesday. US District Judge Lewis Kaplan announced he would be imposing no prison time at a hearing in federal court in Manhattan. The judge praised Wang’s cooperation with prosecutors, and noted that he learned of Bankman-Fried’s fraud later than others in his... https://www.scmp.com/news/world/united-states-canada/article/3287444/sam-bankman-frieds-ex-deputy-gary-wang-spared-prison-time-over-ftx-fraud?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3287444/sam-bankman-frieds-ex-deputy-gary-wang-spared-prison-time-over-ftx-fraud?utm_source=rss_feed Wed, 20 Nov 2024 16:58:09 +0000 Reuters Reuters Collapsed cryptocurrency company FTX is suing Binance and its former CEO Zhao Changpeng, alleging that US$1.8 billion was “fraudulently transferred” by FTX management to Binance and its executives. The lawsuit relates to Binance’s sale of its stake in Sam Bankman-Fried’s FTX, which it acquired in 2019 but then negotiated to sell back to FTX in July 2021. According to the lawsuit, FTX’s Alameda Research division directly funded the share repurchase using tokens which had a then fair market value... https://www.scmp.com/tech/blockchain/article/3286146/ftx-sues-binance-and-former-ceo-zhao-changpeng-us18-billion?utm_source=rss_feed https://www.scmp.com/tech/blockchain/article/3286146/ftx-sues-binance-and-former-ceo-zhao-changpeng-us18-billion?utm_source=rss_feed Tue, 12 Nov 2024 03:00:08 +0000 Hong Kong blockchain investment and video gaming firm Animoca Brands is looking at a recovery in 2024 after its fortunes took a tumble last year, as the collapse of a number of cryptocurrency enterprises set back the city’s nascent digital-asset market. Animoca, which operates several non-fungible token games and has invested in hundreds of blockchain start-ups, on Wednesday reported that its 2023 bookings – including revenue and various digital-asset sales – totalled US$280 million, down 30 per... https://www.scmp.com/tech/blockchain/article/3270076/hong-kong-blockchain-gaming-firm-animoca-sets-sights-recovery-after-listless-2023?utm_source=rss_feed https://www.scmp.com/tech/blockchain/article/3270076/hong-kong-blockchain-gaming-firm-animoca-sets-sights-recovery-after-listless-2023?utm_source=rss_feed Thu, 11 Jul 2024 11:00:09 +0000 Bloomberg Bloomberg A crypto exchange run by Bybit Fintech has surged to second spot globally by trading volume after targeting former clients of the defunct FTX platform as well as users in Europe and Russia. Dubai-based Bybit’s growth has been spurred by plugging the gap left by FTX with a service that allows digital tokens to be used as collateral for margin trading, co-founder and chief executive officer Ben Zhou said in an interview. “When FTX collapsed, we saw the opportunity,” said Zhou, referring to the... https://www.scmp.com/tech/blockchain/article/3268377/how-bybit-scoops-former-ftx-users-become-worlds-second-largest-crypto-exchange?utm_source=rss_feed https://www.scmp.com/tech/blockchain/article/3268377/how-bybit-scoops-former-ftx-users-become-worlds-second-largest-crypto-exchange?utm_source=rss_feed Fri, 28 Jun 2024 02:15:02 +0000 Associated Press Associated Press FTX says that nearly all of its customers will receive the money back that they are owed, two years after the cryptocurrency exchange imploded, and some will get more than that. FTX said in a court filing on Tuesday that it owes about US$11.2 billion to its creditors. The exchange estimates that it has between US$14.5 billion and US$16.3 billion to distribute to them. The filing said that after paying claims in full, the plan provides for supplemental interest payments to creditors, to the... https://www.scmp.com/news/world/united-states-canada/article/3261919/ftx-says-most-customers-will-get-all-their-money-back-less-2-years-after-catastrophic-cryptocurrency?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3261919/ftx-says-most-customers-will-get-all-their-money-back-less-2-years-after-catastrophic-cryptocurrency?utm_source=rss_feed Wed, 08 May 2024 13:58:29 +0000 Associated Press Associated Press Sam Bankman-Fried was sentenced to 25 years in prison by a judge on Thursday for stealing US$8 billion from customers of the now-bankrupt FTX cryptocurrency exchange he founded, the last step in the former billionaire wunderkind’s dramatic downfall. US District Judge Lewis Kaplan handed down the sentence at a Manhattan court hearing after rejecting Bankman-Fried’s claim that FTX customers did not actually lose money and accusing him of lying during his trial testimony. A jury found... https://www.scmp.com/news/world/united-states-canada/article/3257145/crypto-fraudster-bankman-fried-sentenced-25-years-multibillion-dollar-ftx-fraud?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3257145/crypto-fraudster-bankman-fried-sentenced-25-years-multibillion-dollar-ftx-fraud?utm_source=rss_feed Thu, 28 Mar 2024 16:00:47 +0000 Xinmei Shen Xinmei Shen The surging price of bitcoin has sparked increased attention from internet users in mainland China, where some cryptocurrency-related activities persist in spite of a sweeping government ban. The world’s largest and most valuable cryptocurrency, bitcoin gained more than 16 per cent over the past five days to surpass US$59,000 on Wednesday, which made it a fast-trending topic on all major Chinese social media platforms. At one point on Wednesday, bitcoin ranked as the 11th most-searched term on... https://www.scmp.com/tech/tech-trends/article/3253562/bitcoin-remains-fast-trending-topic-chinese-social-media-cryptocurrencys-surging-price-overcomes?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3253562/bitcoin-remains-fast-trending-topic-chinese-social-media-cryptocurrencys-surging-price-overcomes?utm_source=rss_feed Wed, 28 Feb 2024 23:00:08 +0000 Coco Feng Coco Feng Hong Kong should soon follow the United States’ lead in authorising spot cryptocurrency exchange-traded funds (ETFs), bolstering the city’s ambition to become a major virtual-asset hub in Asia, according to industry insiders. While the city’s Securities and Futures Commission (SFC) in December said it was prepared to authorise retail access to spot virtual asset ETFs, the actual launch of such products has already fallen behind the US, according to Wang Yi, the head of quantitative investment at... https://www.scmp.com/tech/tech-trends/article/3248282/hong-kong-needs-speed-approval-spot-cryptocurrency-exchange-traded-funds-after-us-launch-industry?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3248282/hong-kong-needs-speed-approval-spot-cryptocurrency-exchange-traded-funds-after-us-launch-industry?utm_source=rss_feed Sun, 14 Jan 2024 01:00:19 +0000 Bloomberg Bloomberg US regulators for the first time approved exchange-traded funds (ETFs) that invest directly in bitcoin, a move heralded as a landmark event for the roughly US$1.7 trillion digital-asset sector that will broaden access to the largest cryptocurrency on Wall Street and beyond. The Securities and Exchange Commission (SEC), whose three-part mandate includes investor protection, authorised funds from industry heavyweights BlackRock, Invesco and Fidelity to smaller competitors including Valkyrie to... https://www.scmp.com/tech/policy/article/3248009/us-regulator-sec-authorises-bitcoin-spot-etfs-cryptocurrency-breakthrough?utm_source=rss_feed https://www.scmp.com/tech/policy/article/3248009/us-regulator-sec-authorises-bitcoin-spot-etfs-cryptocurrency-breakthrough?utm_source=rss_feed Thu, 11 Jan 2024 02:49:16 +0000 Xinmei Shen Xinmei Shen Governments around the world have increased their scrutiny of cryptocurrencies in the past year following a series of meltdowns, with many strengthening consumer protection in the volatile sector. In 2023, 17 jurisdictions including Hong Kong, the European Union, South Korea, Singapore, and the United States, tightened cryptocurrency regulations, according to a report published on Monday by blockchain analytics firm TRM Labs. Those strengthening protection accounted for 80 per cent of the 21... https://www.scmp.com/tech/policy/article/3247684/hong-kong-joins-eu-us-south-korea-and-singapore-tightening-crypto-regulations-2023-report-says?utm_source=rss_feed https://www.scmp.com/tech/policy/article/3247684/hong-kong-joins-eu-us-south-korea-and-singapore-tightening-crypto-regulations-2023-report-says?utm_source=rss_feed Mon, 08 Jan 2024 13:01:08 +0000 Xinmei Shen Xinmei Shen Hong Kong will allow retail access to exchange-traded funds (ETFs) that invest directly into cryptocurrencies, as the city steps up efforts to expand its nascent virtual-asset industry and become a major crypto hub. The Securities and Futures Commission (SFC) is prepared to authorise funds with direct exposure to virtual assets, including spot virtual asset ETFs, according to a circular jointly issued on Friday by the securities regulator and the Hong Kong Monetary Authority, the city’s de facto... https://www.scmp.com/tech/policy/article/3246308/hong-kong-prepares-retail-access-spot-cryptocurrency-exchange-traded-funds-boosting-citys-virtual?utm_source=rss_feed https://www.scmp.com/tech/policy/article/3246308/hong-kong-prepares-retail-access-spot-cryptocurrency-exchange-traded-funds-boosting-citys-virtual?utm_source=rss_feed Tue, 26 Dec 2023 12:00:17 +0000 Xinmei Shen Xinmei Shen Hong Kong financial technology firm OneDegree is on track to turn profitable next year on the back of its popular insurance policies for household pets and digital assets, according to company co-founder and chief executive Alvin Kwock Yin-lun. The seven-year-old start-up, one of the city’s four licensed virtual insurers, this year expects to roughly halve its underwriting losses, which totalled HK$121.8 million in 2022, and then turn a profit by the second half of 2024, Kwock said in an... https://www.scmp.com/tech/tech-trends/article/3240804/hong-kong-virtual-insurer-onedegree-track-turn-profit-2024-back-popular-coverage-household-pets-and?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3240804/hong-kong-virtual-insurer-onedegree-track-turn-profit-2024-back-popular-coverage-household-pets-and?utm_source=rss_feed Thu, 09 Nov 2023 00:00:18 +0000 Reuters Reuters FTX founder Sam Bankman-Fried was found guilty on Thursday of stealing from customers of his now-bankrupt cryptocurrency exchange in one of the biggest financial frauds on record, a verdict that cemented the 31-year-old former billionaire’s fall from grace. A 12-member jury in Manhattan federal court convicted Bankman-Fried on all seven counts he faced after a month-long trial in which prosecutors made the case that he looted US$8 billion from the exchange’s users out of sheer greed. The verdict... https://www.scmp.com/news/world/united-states-canada/article/3240155/ex-crypto-mogul-sam-bankman-fried-convicted-defrauding-ftx-customers?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3240155/ex-crypto-mogul-sam-bankman-fried-convicted-defrauding-ftx-customers?utm_source=rss_feed Fri, 03 Nov 2023 00:11:54 +0000 Reuters Reuters FTX founder Sam Bankman-Fried testified on Monday that he believed his Alameda Research hedge fund had enough assets to cover an US$8 billion debt to the cryptocurrency exchange until days before both collapsed. Testifying in his own defence at his fraud trial, the 31-year-old former billionaire told jurors that he was concerned and surprised, but not alarmed, upon learning in October 2022 that Alameda had borrowed $8 billion from deposits that FTX customers sent to the exchange. “If it were far... https://www.scmp.com/tech/tech-trends/article/3239751/ftx-fraud-trial-sam-bankman-fried-tells-court-he-thought-hedge-fund-could-cover-us8-billion-debt?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3239751/ftx-fraud-trial-sam-bankman-fried-tells-court-he-thought-hedge-fund-could-cover-us8-billion-debt?utm_source=rss_feed Mon, 30 Oct 2023 22:26:47 +0000 Sanjeev Aaron Williams Sanjeev Aaron Williams Last year’s cryptocurrency winter had Hong Kong regulators rightly congratulating themselves. An abundance of initial caution and incremental approaches since 2017 to formulate a regulatory regime for cryptocurrency trading meant the city dodged a reputational bullet. FTX was based here, got annoyed with our perceived tardiness, dabbled in regulatory arbitrage and fled to the Bahamas in 2021, where it subsequently imploded to unveil a monumental fraud. Singapore’s reputation was smeared, after... https://www.scmp.com/comment/opinion/article/3238399/lessons-jpex-hong-kongs-cryptocurrency-retail-investors-must-be-better-protected?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3238399/lessons-jpex-hong-kongs-cryptocurrency-retail-investors-must-be-better-protected?utm_source=rss_feed Sat, 21 Oct 2023 21:30:12 +0000 Agence France-Presse Agence France-Presse Sam Bankman-Fried knowingly used FTX clients’ funds without permission to invest through his personal hedge fund, the disgraced cryptocurrency titan’s former business partner testified in court on Friday. Gary Wang Zixiao, a co-founder of FTX with Bankman-Fried, has already pleaded guilty to multiple counts related to the cryptocurrency trading platform’s stunning collapse, and has agreed to cooperate with federal prosecutors. He is the first major witness to appear at his former partner’s... https://www.scmp.com/tech/tech-trends/article/3237150/ftx-trial-court-hears-sam-bankman-fried-used-crypto-exchange-clients-funds-without-permission-invest?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3237150/ftx-trial-court-hears-sam-bankman-fried-used-crypto-exchange-clients-funds-without-permission-invest?utm_source=rss_feed Sat, 07 Oct 2023 04:38:03 +0000 Reuters Reuters Singapore state investor Temasek Holdings said on Monday it had cut compensation for the team that recommended its investment in the now-bankrupt FTX cryptocurrency exchange, as well as for its senior management team. The move comes around six months after Temasek initiated an internal review of its investment in FTX, which resulted in a writedown of US$275 million. “Although there was no misconduct by the investment team in reaching their investment recommendation, the investment team and... https://www.scmp.com/news/asia/southeast-asia/article/3222127/singapores-temasek-cuts-pay-staff-over-us275-million-ftx-fiasco-we-are-disappointed?utm_source=rss_feed https://www.scmp.com/news/asia/southeast-asia/article/3222127/singapores-temasek-cuts-pay-staff-over-us275-million-ftx-fiasco-we-are-disappointed?utm_source=rss_feed Mon, 29 May 2023 00:57:15 +0000 Reuters Reuters Indicted FTX cryptocurrency exchange founder Sam Bankman-Fried pleaded not guilty on Thursday to new US charges of conspiring to violate campaign finance laws and bribe Chinese authorities. Bankman-Fried, 31, entered the plea to the new, 13-count indictment through his lawyer, Mark Cohen, at a hearing before US District Judge Lewis Kaplan in Manhattan federal court. He had earlier pleaded not guilty to eight counts of fraud and conspiracy for allegedly stealing billions in FTX customer funds to... https://www.scmp.com/news/world/united-states-canada/article/3215467/ftxs-sam-bankman-fried-arrives-court-plead-not-guilty-new-charges?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3215467/ftxs-sam-bankman-fried-arrives-court-plead-not-guilty-new-charges?utm_source=rss_feed Thu, 30 Mar 2023 15:42:48 +0000 Changhao Jiang Changhao Jiang Hong Kong recently pivoted to a more crypto-friendly regulatory regime, going as far as to legalise retail trading in cryptocurrencies. The move has rekindled market enthusiasm for the crypto trade. But with the industry still reeling from the collapse of FTX, the challenge of how to enforce a robust regulatory framework on cryptocurrency exchanges is one that must be immediately addressed. Clearly, strengthening licensing requirements for exchanges, as well as imposing rules and regulations, is... https://www.scmp.com/comment/opinion/hong-kong/article/3207262/after-ftx-collapse-cryptocurrency-regulators-should-look-technology-protect-users-funds?utm_source=rss_feed https://www.scmp.com/comment/opinion/hong-kong/article/3207262/after-ftx-collapse-cryptocurrency-regulators-should-look-technology-protect-users-funds?utm_source=rss_feed Thu, 19 Jan 2023 06:30:09 +0000 Xinmei Shen Xinmei Shen Crypto unicorn Amber Group is slashing costs and jobs across the board, halving its total staff size in Hong Kong to 40 by cutting support jobs including IT, risk management, audit and compliance, a source said, as the firm scrambles to survive a cryptocurrency market meltdown. Over the past few months Amber, which started in Hong Kong and is backed by major investors including Sequoia Capital China and Temasek Holdings, has culled compliance from more than 20 people to fewer than 5 globally,... https://www.scmp.com/tech/tech-trends/article/3207265/cryptocurrency-firm-amber-scrambles-cut-costs-industry-battles-shock-waves-created-ftx-collapse?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3207265/cryptocurrency-firm-amber-scrambles-cut-costs-industry-battles-shock-waves-created-ftx-collapse?utm_source=rss_feed Wed, 18 Jan 2023 10:00:09 +0000 Associated Press Associated Press FTX founder Sam Bankman-Fried pleaded not guilty in Manhattan federal court on Tuesday to charges that he cheated investors and looted customer deposits on his cryptocurrency trading platform as a judge set a tentative trial date for October. Bankman-Fried, 30, is accused of illegally diverting massive sums of customer money from FTX to make lavish real estate purchases, donate money to politicians and make risky trades at Alameda Research, his cryptocurrency hedge fund trading... https://www.scmp.com/news/world/united-states-canada/article/3205482/ftx-founder-sam-bankman-fried-pleads-not-guilty-fraud?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3205482/ftx-founder-sam-bankman-fried-pleads-not-guilty-fraud?utm_source=rss_feed Tue, 03 Jan 2023 20:02:28 +0000 Bloomberg Bloomberg FTX founder Sam Bankman-Fried said he and former executive Gary Wang borrowed more than US$546 million from Alameda Research to buy a nearly 8 per cent stake in Robinhood Markets, according to court papers. The pair borrowed the funds earlier this year. The transactions were documented in a series of promissory notes, detailed in an affidavit that surfaced in a dispute in US bankruptcy court in New Jersey on Tuesday. The Robinhood stake – about 56 million shares in total – is at the centre of a... https://www.scmp.com/tech/tech-trends/article/3204771/alameda-lent-sam-bankman-fried-us546-million-robinhood-stake?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3204771/alameda-lent-sam-bankman-fried-us546-million-robinhood-stake?utm_source=rss_feed Wed, 28 Dec 2022 05:12:41 +0000 Bloomberg Bloomberg Federal prosecutors are investigating an alleged cybercrime that drained more than US$370 million from cryptocurrency exchange FTX hours after it filed for bankruptcy last month. The US Department of Justice (DoJ) has launched a criminal investigation into the stolen assets that is separate from the fraud case against FTX co-founder Sam Bankman-Fried, according to a person familiar with the case. US authorities have managed to freeze some of the stolen funds, the person confirmed. However the... https://www.scmp.com/news/world/united-states-canada/article/3204729/us-investigates-how-us372-million-vanished-hack-after-ftx-bankruptcy?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3204729/us-investigates-how-us372-million-vanished-hack-after-ftx-bankruptcy?utm_source=rss_feed Tue, 27 Dec 2022 18:15:09 +0000 Bloomberg Bloomberg Former Alameda Research CEO Caroline Ellison said she and FTX co-founder Sam Bankman-Fried knowingly misled lenders about how much the now-bankrupt trading firm was borrowing from the cryptocurrency exchange. Ellison gave her first public account of her actions in a December 19 plea hearing in Manhattan federal court. “I knew that it was wrong,” she said, according to a transcript of the hearing. FTX co-founder Gary Wang also gave a statement that day. “From 2019 through 2022, I was aware that... https://www.scmp.com/business/article/3204478/alamedas-ex-ceo-ellison-says-she-and-bankman-fried-misled-ftx-lenders?utm_source=rss_feed https://www.scmp.com/business/article/3204478/alamedas-ex-ceo-ellison-says-she-and-bankman-fried-misled-ftx-lenders?utm_source=rss_feed Sat, 24 Dec 2022 06:46:01 +0000 Emily Hung Emily Hung Police arrested two men on Friday in connection with an alleged fraud involving a Hong Kong-headquartered cryptocurrency exchange, in which hundreds of investors worldwide were said to have lost a total of US$30 million. A total of 337 alleged victims had contacted its commercial crime bureau since November 16, Acting Chief Inspector Lee Wai-chung on said Friday. A police investigation found that Atom Asset Exchange (AAX) froze all asset transactions and withdrawals from November 12 and blamed a... https://www.scmp.com/news/hong-kong/law-and-crime/article/3204461/police-arrest-two-men-hong-kong-connection-alleged-us30-million-fraud-case-after-collapse?utm_source=rss_feed https://www.scmp.com/news/hong-kong/law-and-crime/article/3204461/police-arrest-two-men-hong-kong-connection-alleged-us30-million-fraud-case-after-collapse?utm_source=rss_feed Fri, 23 Dec 2022 17:00:04 +0000 Tracy Qu Tracy Qu Traders withdrew US$6 billion in three days from Binance, according to the world’s largest cryptocurrency exchange, as it assured investors who have been spooked by FTX’s collapse that it has enough capital to sustain its operations. The mass withdrawals from December 12 to 14 were all honoured, Binance said in a Chinese-language blog post on its website, which maintained that its financial situation is sound and that it is not facing any liquidity crisis, without divulging the amount of capital... https://www.scmp.com/tech/tech-trends/article/3204404/binance-puts-brave-face-even-investors-pulled-us6-billion-3-days-worlds-largest-cryptocurrency?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3204404/binance-puts-brave-face-even-investors-pulled-us6-billion-3-days-worlds-largest-cryptocurrency?utm_source=rss_feed Fri, 23 Dec 2022 14:00:10 +0000 Reuters Reuters Sam Bankman-Fried was released on a US$250 million bond package while he awaits trial over the collapse of cryptocurrency exchange FTX, which a US prosecutor called a “fraud of epic proportions”. Federal prosecutors in Manhattan have accused the FTX founder of stealing billions of dollars in customer funds to plug losses at his hedge fund, Alameda Research. Bankman-Fried was not asked to enter a plea on Thursday. He has previously acknowledged risk-management failures at FTX, but has said he... https://www.scmp.com/news/world/united-states-canada/article/3204315/ftx-founder-sam-bankman-fried-allowed-us250-million-bond-house-arrest?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3204315/ftx-founder-sam-bankman-fried-allowed-us250-million-bond-house-arrest?utm_source=rss_feed Thu, 22 Dec 2022 19:37:02 +0000 Xinmei Shen Xinmei Shen Two former FTX executives pleaded guilty to United States federal charges in relation to the collapse of the world’s second-largest cryptocurrency exchange, as their ex-colleague and founder Sam Bankman-Fried is extradited to the US to face charges. FTX co-founder and former chief technology officer Gary Wang Zixiao, and Caroline Ellison, the chief executive of FTX’s trading arm Alameda Research, pleaded guilty to 11 counts between them on December 18 at the Southern District of New York,... https://www.scmp.com/tech/tech-trends/article/3204210/ellison-and-wang-plead-guilty-us-fraud-charges-ftx-dragnet-widens-collapse-worlds-second-largest?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3204210/ellison-and-wang-plead-guilty-us-fraud-charges-ftx-dragnet-widens-collapse-worlds-second-largest?utm_source=rss_feed Thu, 22 Dec 2022 04:27:59 +0000 Hong Kong-run cryptocurrency trading firm Auros said it has entered into a liquidation process after struggling to pay creditors as fallout from the implosion of FTX last month continues to reverberate. Auros was granted a “light touch” provisional liquidation application by the British Virgin Islands Court last month after it “found itself in a position where immediate liquidity was insufficient to satisfy recalls from lenders” following the FTX collapse, the company said in a statement... https://www.scmp.com/tech/tech-trends/article/3204116/hong-kong-cryptocurrency-trading-firm-files-provisional-liquidation-after-ftx-collapse?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3204116/hong-kong-cryptocurrency-trading-firm-files-provisional-liquidation-after-ftx-collapse?utm_source=rss_feed Wed, 21 Dec 2022 11:00:18 +0000 Forkast.News Forkast.News The FTX scandal continues sending shock waves throughout the cryptocurrency industry. Few could have predicted that the highly-regarded centralised exchange (CEX) would implode, leaving vulnerable retail investors to bear the brunt of the catastrophe. Thousands of FTX users were unable to pull their funds off of the exchange when insolvency rumours began to swell, and now may never be refunded. The collapse has underscored the vital importance for cryptocurrency users to be able to transact... https://www.scmp.com/business/banking-finance/article/3203955/how-cryptocurrency-exchanges-can-regain-investors-trust-wake-ftx-collapse?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3203955/how-cryptocurrency-exchanges-can-regain-investors-trust-wake-ftx-collapse?utm_source=rss_feed Tue, 20 Dec 2022 07:07:24 +0000 Reuters Reuters Former FTX CEO Sam Bankman-Fried is expected to appear in court in the Bahamas on Monday to reverse his decision to contest extradition to the United States, where he faces fraud charges, a person familiar with the matter said on Saturday. The 30-year-old cryptocurrency mogul was indicted in federal court in Manhattan on Tuesday and accused of engaging in a scheme to defraud FTX customers. His decision to consent to extradition would pave the way for him to appear in US court to face charges of... https://www.scmp.com/tech/big-tech/article/3203720/ftx-ceo-sam-bankman-fried-reverse-decision-contesting-us-extradition?utm_source=rss_feed https://www.scmp.com/tech/big-tech/article/3203720/ftx-ceo-sam-bankman-fried-reverse-decision-contesting-us-extradition?utm_source=rss_feed Sat, 17 Dec 2022 22:26:44 +0000 Reuters Reuters FTX founder Sam Bankman-Fried was swiftly indicted after the collapse of his crypto empire, but a trial in New York is likely more than a year away as prosecutors build out their case and both sides spar over evidence. The bare-bones indictment against Bankman-Fried – which could be amended with more details and co-defendants as the case progresses – suggests prosecutors have a long road ahead piecing together what they have described as one of the biggest financial frauds in American history.... https://www.scmp.com/tech/big-tech/article/3203674/trial-ftxs-sam-bankman-fried-possibly-18-months-out-us-prosecutors-put-together-case-against-crypto?utm_source=rss_feed https://www.scmp.com/tech/big-tech/article/3203674/trial-ftxs-sam-bankman-fried-possibly-18-months-out-us-prosecutors-put-together-case-against-crypto?utm_source=rss_feed Sat, 17 Dec 2022 05:30:13 +0000 Bloomberg Bloomberg Now that Sam Bankman-Fried’s fall from grace is complete, uneasiness is growing around the dominance that his rival Changpeng Zhao’s Binance holds in the cryptocurrency market. The worries surfaced again on Friday as the accounting firm Mazars Group halted work for Binance and other crypto firms on reports that are meant to demonstrate that the companies hold the necessary reserves needed to cover any potential surge of customer withdrawals. Zhao, who goes by his initials CZ, has insisted... https://www.scmp.com/tech/big-tech/article/3203671/binance-too-big-fail-ftx-collapse-raises-scrutiny-and-concerns-about-dominant-crypto-firm?utm_source=rss_feed https://www.scmp.com/tech/big-tech/article/3203671/binance-too-big-fail-ftx-collapse-raises-scrutiny-and-concerns-about-dominant-crypto-firm?utm_source=rss_feed Sat, 17 Dec 2022 04:21:19 +0000 Xinmei Shen Xinmei Shen Binance chief executive Zhao Changpeng said “things seem to have stabilised” after customers pulled billions of dollars of funds from the exchange, in an attempt to allay persistent investor fears about the state of the cryptocurrency industry following the collapse of FTX. Deposits are returning, wrote Zhao, known in the industry as “CZ”, in a Twitter post on Wednesday. On Tuesday, 24-hour net outflows on Binance, the world’s largest cryptocurrency exchange, reached US$3 billion, according to... https://www.scmp.com/tech/tech-trends/article/3203416/binances-cz-seeks-reassure-investors-after-massive-withdrawals-amid-ftx-induced-market-scepticism?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3203416/binances-cz-seeks-reassure-investors-after-massive-withdrawals-amid-ftx-induced-market-scepticism?utm_source=rss_feed Thu, 15 Dec 2022 09:00:16 +0000 Bloomberg Bloomberg A GitHub account bearing the name of former FTX executive Nishad Singh authored code that hid Alameda Research’s ballooning liabilities on the now-collapsed cryptocurrency exchange, according to internal documentation reviewed by Bloomberg News. The documentation, in the form of comments associated with specific lines of code, offers clues to the origins of a mysterious account on FTX that a regulator alleges helped mask mounting debts of its sister trading firm Alameda Research. The... https://www.scmp.com/tech/policy/article/3203364/ftx-executives-used-korean-account-mask-alameda-liabilities-github-code-shows?utm_source=rss_feed https://www.scmp.com/tech/policy/article/3203364/ftx-executives-used-korean-account-mask-alameda-liabilities-github-code-shows?utm_source=rss_feed Thu, 15 Dec 2022 04:00:10 +0000 Prisoners faced rodents and a lack of toilets in the Bahamas detention centre where Sam Bankman-Fried will be held, according to a 2021 US State Department report, though local authorities says conditions have since improved. The 30-year-old Bankman-Fried arrived at a Bahamas court on Tuesday for his first in-person public appearance since the spectacular collapse of cryptocurrency exchange he founded. He did not waive a hearing on his extradition to the United States to face charges of... https://www.scmp.com/news/world/united-states-canada/article/3203255/ftx-fallout-uncertain-conditions-await-sam-bankman-fried-inside-fox-hill-bahamas-only-prison?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3203255/ftx-fallout-uncertain-conditions-await-sam-bankman-fried-inside-fox-hill-bahamas-only-prison?utm_source=rss_feed Wed, 14 Dec 2022 07:24:52 +0000 Reuters Reuters In mid-2020, FTX’s chief engineer made a secret change to the cryptocurrency exchange’s software. He tweaked the code to exempt Alameda Research, a hedge fund owned by FTX founder Sam Bankman-Fried, from a feature on the trading platform that would have automatically sold off Alameda’s assets if it was losing too much borrowed money. In a note explaining the change, the engineer, Nishad Singh, emphasised that FTX should never sell Alameda’s positions. “Be extra careful not to liquidate,” Singh... https://www.scmp.com/tech/big-tech/article/3203209/secret-ftx-software-change-exempted-alameda-automatic-asset-sell-raising-red-flags-us-regulators?utm_source=rss_feed https://www.scmp.com/tech/big-tech/article/3203209/secret-ftx-software-change-exempted-alameda-automatic-asset-sell-raising-red-flags-us-regulators?utm_source=rss_feed Wed, 14 Dec 2022 01:53:16 +0000 One month on from the collapse of former cryptocurrency exchange FTX, institutional investors in Hong Kong remain reluctant to speak out about the collateral damage of the incident as the industry reels from billions in losses across dozens of organisations. Among the top venture capital firms that invested in the exchange – which was born in Hong Kong – and have disclosed losses, US-based investors appear to have been hit the hardest by the implosion of FTX, which until last month was the... https://www.scmp.com/tech/tech-trends/article/3203176/hong-kong-investors-ftx-maintain-eerie-quiet-one-month-after-bankruptcy-filing-and-founder-arrested?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3203176/hong-kong-investors-ftx-maintain-eerie-quiet-one-month-after-bankruptcy-filing-and-founder-arrested?utm_source=rss_feed Tue, 13 Dec 2022 23:00:13 +0000 Eric Ng Eric Ng Investors placing bets on virtual assets should be aware of risks associated with such investment products as they are mostly unregulated, Hong Kong’s securities watchdog warned. “Investors are urged to be wary of the potential high risks associated with virtual asset arrangements,” the Securities and Futures Commission (SFC) said in a statement late on Tuesday. “If they cannot fully understand them and bear the potential significant or total losses, they should not make an investment.” The SFC... https://www.scmp.com/business/banking-finance/article/3203191/hong-kong-securities-watchdog-warns-high-risks-associated-virtual-assets-after-cryptocurrency?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3203191/hong-kong-securities-watchdog-warns-high-risks-associated-virtual-assets-after-cryptocurrency?utm_source=rss_feed Tue, 13 Dec 2022 22:00:18 +0000 Reuters Reuters FTX founder Sam Bankman-Fried was charged by the US Securities and Exchange Commission (SEC) on Tuesday with defrauding investors in what regulators called “a house of cards”, hours before he was expected to appear before a magistrate in the Bahamas. Separate charges would be announced by the US Attorney’s Office for the Southern District for New York and the Commodity Futures Trading Commission later on Tuesday, the SEC said. In a statement, the SEC said it would seek a director and officer bar... https://www.scmp.com/tech/tech-trends/article/3203173/us-charges-ftx-founder-bankman-fried-defrauding-investors-after-arrest-bahamas?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3203173/us-charges-ftx-founder-bankman-fried-defrauding-investors-after-arrest-bahamas?utm_source=rss_feed Tue, 13 Dec 2022 12:21:02 +0000 Associated Press Associated Press US prosecutors have charged Sam Bankman-Fried, the founder and former CEO of cryptocurrency exchange FTX, with a host of financial crimes and campaign finance violations on Tuesday, alleging he played a central role in the collapse of FTX and hid its problems from the public and investors. Bankman-Fried was charged with eight counts, ranging from wire fraud to money laundering to conspiracy to commit fraud on the United States. He was also charged with violating campaign finance laws, a notable... https://www.scmp.com/news/world/united-states-canada/article/3203072/former-ftx-ceo-sam-bankman-fried-arrested-bahamas?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3203072/former-ftx-ceo-sam-bankman-fried-arrested-bahamas?utm_source=rss_feed Tue, 13 Dec 2022 02:18:29 +0000 SCMP Editorial SCMP Editorial Cryptos are collapsing like dominoes around the world in the wake of FTX’s implosion, one of the largest exchanges of its kind. The crisis is sweeping our shores. The Hong Kong-based crypto exchange Atom Asset Exchange (AAX), founded just four years ago, has suspended all withdrawals since the middle of last month. Its management team is incommunicado and the size of the losses is as yet unknown. A statement from AAX claiming “no funds have been compromised” is hardly reassuring to investors,... https://www.scmp.com/comment/opinion/article/3202852/implosion-ftx-shows-need-proper-regulation?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3202852/implosion-ftx-shows-need-proper-regulation?utm_source=rss_feed Sat, 10 Dec 2022 16:23:32 +0000 Agence France-Presse Agence France-Presse Omnipresent on talk shows and conference panels, disgraced cryptocurrency tycoon Sam Bankman-Fried is defying the advice of the legal profession and staying in the public eye despite facing the real threat of prosecution and even jail time. As the architect and former CEO of a bankrupt enterprise that cannot account for billions of dollars in missing customer funds, Bankman-Fried faces scrutiny from regulators, prosecutors and politicians. Bankman-Fried’s media blitz will head to Washington on... https://www.scmp.com/news/world/united-states-canada/article/3202816/will-ftx-founder-sam-bankman-frieds-charm-offensive-backfire-amid-criminal-probe?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3202816/will-ftx-founder-sam-bankman-frieds-charm-offensive-backfire-amid-criminal-probe?utm_source=rss_feed Sat, 10 Dec 2022 05:08:59 +0000 Coco Feng Coco Feng Mainland Chinese FTX customers are seeking remedy to lost funds after losing thousands of dollars in unprotected investments on the now-bankrupt cryptocurrency exchange, which had 8 per cent of its users in the country despite local laws banning the trade. One investor, who declined to be named, said he joined three WeChat groups last month, each consisting of more than 400 Chinese victims desperately in search of possible remedies, but all the groups were dissolved within days, as discussions... https://www.scmp.com/tech/tech-trends/article/3202265/chinese-ftx-investors-scramble-recoup-losses-beijings-anti-cryptocurrency-stance-leaves-little-hope?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3202265/chinese-ftx-investors-scramble-recoup-losses-beijings-anti-cryptocurrency-stance-leaves-little-hope?utm_source=rss_feed Tue, 06 Dec 2022 10:30:10 +0000 Bloomberg Bloomberg US authorities are asking crypto investors and trading firms that worked closely with FTX to hand over information on the company and its key figures, including founder Sam Bankman-Fried and the former head of his Alameda Research investment arm, Caroline Ellison. The US Attorney’s Office for the Southern District of New York recently sent out a slew of requests, asking recipients to voluntarily hand over information on a list of FTX employees and associates, according to people familiar with... https://www.scmp.com/tech/tech-trends/article/3201764/ftx-investors-pressed-info-sam-bankman-fried-and-others-his-crypto-exchange-and-alameda-research?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3201764/ftx-investors-pressed-info-sam-bankman-fried-and-others-his-crypto-exchange-and-alameda-research?utm_source=rss_feed Fri, 02 Dec 2022 02:02:33 +0000 Reuters Reuters Sam Bankman-Fried, the founder and former CEO of now-bankrupt crypto exchange FTX, attempted to distance himself from suggestions of fraud in his first public appearance since his company’s collapse stunned investors and left creditors facing losses totalling billions of dollars. Speaking via video link at the New York Times’ Dealbook Summit with Andrew Ross Sorkin on Wednesday, Bankman-Fried said he did not knowingly commingle customer funds on FTX with funds at his proprietary trading firm,... https://www.scmp.com/tech/big-tech/article/3201623/sam-bankman-fried-says-he-didnt-ever-try-commit-fraud-ftx-funds-sent-alameda?utm_source=rss_feed https://www.scmp.com/tech/big-tech/article/3201623/sam-bankman-fried-says-he-didnt-ever-try-commit-fraud-ftx-funds-sent-alameda?utm_source=rss_feed Thu, 01 Dec 2022 02:19:14 +0000