FTX Declares Bankruptcy and Sam Bankman-Fried Resigns in Latest Crypto Blowup
Kyle Barr

Sam Bankman-Fried announced he was stepping down as CEO from his crypto exchange ftx. rip ftx. The company announced Friday morning that they were starting Chapter 11, AKA reorganizational bankruptcy proceedings. In addition, CEO Sam Bankman-Fried’s other crypto firm, Alameda Research and Weste Realm Shires Services, which is also known as FTX.US, are also tangled up in the proceedings.

The 30-year-old supposed wunderkind Bankman-Fried, once considered one of the top minds in the crypto sphere, also announced he was vacating his chair as CEO, and that John Ray III is stepping up as head honcho. According to the official press release, “Many employees of the FTX Group in various countries are expected to continue” during the bankruptcy proceedings.

As of now, most FTX users were still unable to withdraw their funds from the exchange. In the release, Ray said “stakeholders should understand that events have been fast-moving and the new team is engaged only recently,” though he did promise every stakeholder they will go forward with “thoroughness and transparency.” That’s probably not much comfort for the thousands of FTX users who had millions of dollars in crypto stored on the FTX exchange.

How did this all start? A report from CoinDesk made it clear that FTX had been effectively printing money using its own FTT crypto token to prop up Alameda Research, Bankman-Fried’s own crypto trading firm. A Thursday report from The Wall Street Journal clarified that FTX had used customer’s money to fund their own trading endeavors. Of the $16 billion customer assets under FTX’s control, Bankman-Fried reportedly leant half of that amount over to Alameda so it could engage in risky crypto investments. Throughout 2022, Bankman-Fried had been propping up other failing crypto firms and buying up the assets of failed ventures like Voyager and Celsius.

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ZoidPay might genuinely plan to become "by the end of the first quarter of 2023, the biggest Web 3.0 architecture provider in the world," and there's no reason to doubt their good faith - but this is still a big promise. And, if successful, this means there would be nothing left to be achieved by Elrond Network - which also promises to deliver the MultiversX project, through which it wants "to create a global ecosystem that integrates the concepts of metaverse, Web3 and blockchain."

In separate news, Ziarul Financiar published a warning note from the Romanian Financial Supervising Authority (ASF) that points to the increasing financial criminality in the new crypto-world. ASF warns potential investors that using the services of an unauthorized entity will not entitle them to compensation through the Investor Compensation Fund.

Regarding virtual currencies, ASF reiterates that they are not considered financial instruments, as they are defined by Law no. 126/2018, so that entities issuing virtual currencies, their trading and the platforms on which they are traded do not fall under the Authority's supervision.

iulian@romania-insider.com

Bahamas-based VC fund "commits" USD 75 mln to Romanian startup ZoidPay

04 November 2022

Romanian "blockchain technology and crypto liquidity startup" ZoidPay, which aims to become "the largest open source Web 3.0 architecture platform in the world," attracted a USD 75 million investment from GEM Digital Limited ("GEM"), a Bahamas-based investment firm "focused on the area of blockchain and cryptocurrencies," Ziarul Financiar announced.

ZoidPay, the leading Web 3.0 architecture provider, has secured an investment commitment of USD 75 mln from digital asset investment firm GEM Digital Limited ("GEM"), the official press release reads, though.

Superficial investigations on the GEM digital asset investment firm reveal, however, what this investment in the metaverse actually is, and whether one should or not put their money into the coins or tokens ZoidPay will most likely soon issue. The answer is: better "commit" but rather not pay, if possible.
Bahamas-based GEM Digital Limited has "committed" billions of US dollars over the past several months to such ambitious projects - nothing wrong here. But in contrast to the most funding news, in which an investment institution directly announces an actual investment in a project, GEM Digital is basically announcing that it "is issuing an investment commitment," influential crypto blog Wu-talk.com explains.

In brief, such "investment commitments" are primarily aimed at increasing awareness among investors hoping for stellar profit rates derived from trading coins and tokens.

"In other words, GEM Digital's investment agreement is more like a cooperation and sharing agreement, where both parties sign a so-called huge investment agreement, create good news in the market, and then collaborate to make profits and share them," explains Colin Wu in an article dated July (since then, GEM has "committed" more hundreds of millions of dollars).

In the crypto world more than in other investment universes, the meme stories filled with buzzwords are gold ("developing the go-to open architecture for building the next generation of financial services, scaling the first on-demand Metaverse, facilitating the first-ever bank acquisition by a blockchain firm, and launching a Web 3.0 super App" - this is what ZoidCoin plans to achieve). The scheme resembles the digital version of the gem scam - a confidence trick usually performed against tourists in Thailand, where the targets are convinced to buy fake gems (startups) at a discount by building confidence through fake third-party (venture funds) testimonials.

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The Bahamas Economy is handicapped by years of petty political assassination, discrimination and bias that follow politicians (from both sides of the fence) into governing the Bahamas years after completing the general election battlefield.

The Bahamas is not a true country, we live here only because we are the leisure location for Mericans that has the free time for 3-day vacations and back home or to work within 24 hours - minus that, we are dead, just a new group of 'boat people'

Commonwealth of Independent States (CIS) is calling; the Bahamas, along with caricom, would be wise to seek membership alliance with other new and upcoming world alliances that are reasonable, friendly, less politicized and supportive. Because what I am starting to hear sounds like it's that time to give a call to Uncle Putin in Russia; I am sure the tourist from Russia are better spenders, less complaining and much more pleasant guests ...and with cheaper fuel, we would have the perfect package. 🥳

Bahamians don't trust Politicians ' Period governance in the Bahamas has created a country that is not real; self-interest and 'who you know is the order of the day. While Minnis, (who should keep his mouth shut) had the opportunity to fix the years of wrongs issued out to Bahamians under the despised of 'we care for you. With just under 400,000 persons and over 50 years of self-governance, we can't get it right for all Bahamians; yes, the Bahamas has been perfect for some of us. But greed, simple greed, selfishness and ego just created what we see now as a country that is tethered to crises, where Bahamians will soon be the new boat people risking lives to reach the shores of south Florida, becoming the third Caribbean Country of Migrant Refugees.

A $1 billion plan to transform electricity provision in the Bahamas yesterday, proposed a $1 billion plan to transform electricity provision in the Bahamas.

#The plan, which aims to curb electricity prices in the long run, would see power provided to The Bahamas by a Florida power plant via a submarine electrical cable running from a Florida electrical grid to Clifton Pier.

#Mr Mortimer, who said the project would take about two years to complete, compared his proposal to a current project between Canada and the United States. The project would see a “Lake Erie connector” run from Ontario, Canada, into Pennsylvania, US.

#“One of the major issues impacting our country is the issue of power and the cost of power primarily,” he said during a press conference, adding that the country should take advantage of its “strategic location”.

#“The Bahamas cannot continue to be a prosperous country for corporations and mom-and-pop businesses without dealing with this issue. BEC spends on average between $700m and just over $1bn every year purchasing fuel in an archaic system that does not serve our country well. We are advancing a proposal that we believe will dramatically alter the cost of power in The Bahamas. We will deliver the cheapest per kilowatt of power in the region. We’re going to take advantage of our strategic location. We’ve done this before on various platforms.*

But these fool suggestions would not get anywhere as long as money is made by some Harthless Greedy Bahamians who view the crisis and hardship of Bahamians as opportunities.

The Bahamas is much too small to be playing the stupid American Political Games of sanctioning other countries to its detriment. The Bahamas following these fools will be of no benefit to us, nor will the Americans care to offer support when the Bahamas fall into crisis.

Never in the history of any world crisis have we seen the cost of supporting egos and adventurism totalling in the 100s of billions as it is with the Russia/Ukraine conflict. And the Bahamas is walking 'in step' as if it has some resources or political power to follow the Americans.

Fuel is available from Iran, Venezuela and Russia. If the Americans don't like it, then fix the problem and provide a solution to the high cost of living because of your stupid useless wars. The Bahamas is too soft with the Americans.

In the words of Barbados Prime Minister, the Honorable Mia Mottley, 'we have also seen others use alternative mechanisms'.