STORY: From new revelations at FTX, to a gloomy get-together in El Salvador, this is your roundup of the week’s big stories in the world of virtual money…
New FTX boss John Ray says the chaos at the company is “unprecedented”.
A balance sheet for the collapsed crypto exchange revealed lax controls and record-keeping.
Sources have told Reuters that former boss Sam Bankman-Fried used $10 billion in customer funds to prop up affiliate Alameda Research.
At least $1 billion of that seems to have disappeared.
At a bankruptcy hearing on Tuesday, attorneys for the firm said FTX was run as Bankman-Fried's ‘personal fiefdom’ and that one of the company’s units spent $300 million on Bahamas real estate.
Contagion fears remain high, but crypto lender Genesis has denied reports it would imminently file for bankruptcy.
It’s had to suspend customer withdrawals following the collapse of FTX.
But the firm says it’s looking for a consensual solution, not bankruptcy.
Media reports claim it's been struggling to raise new cash.
And the chaos is casting a shadow in El Salvador, which was the first country to make bitcoin legal tender.
A crypto conference in the country saw empty seats and an absence of big names.
Though Bitfinex executive Paolo Ardoino said FTX was a distraction:
“So keep in mind what happened with FTX: it just made it clear that bitcoin is one thing and all the other alt coins – all the other blockchains – are different. Speculation – that is what FTX did – is different than bitcoin adoption and bitcoin support.”
Bitcoin has lost more than three quarters of its value over the past year, but El Salvador leader Nayib Bukele says his government is still a buyer.