But that market calm does not mean the crypto contagion is contained. The fallout from the collapse last month of Sam Bankman-Fried’s crypto exchange, FTX, has spread to other firms, setting off a wave of layoffs, lawsuits and investigations. Shareholders of Silvergate, the U.S. bank that processed payments and money transfers for FTX, sued the bank for negligence, calling the exchange a Ponzi scheme.
Meanwhile, customers of Gemini, the crypto exchange owned by the Winklevoss twins, are owed as much as $900 million from Genesis, the crypto lender that has faced severe financial distress since FTX’s collapse, according to The Financial Times. And ByBit, a major crypto exchange, announced this weekend that it would cut 30 percent of its staff, the latest firm to cut its head count as digital asset prices sink.
Here’s what else is happening in crypto:
Mr. Bankman-Fried said on Sunday that he would be willing to testify before the House Financial Services Committee. The catch: S.B.F., as he is known, probably won’t be ready to speak with lawmakers in time for Dec. 13 hearings into the implosion of FTX.
Mr. Bankman-Fried’s media tour shows no signs of slowing down. He told The Financial Times that he regretted giving Alameda Research, the trading affiliate of FTX, favorable borrowing limits.
S.B.F.’s father, the Stanford law professor Joseph Bankman, has canceled a class he was set to teach next year. Bankman did work for FTX’s philanthropic efforts and is helping with his son’s legal defense.
FTX’s bankruptcy has international regulators, including those in Cyprus, Turkey and the Bahamas, squabbling over the company’s assets, potentially complicating which customers get repaid and how much.
Andrew Vara, the U.S. bankruptcy trustee for FTX’s case, called on the Delaware court to appoint an independent examiner into the exchange’s sudden collapse, saying there is substantial evidence to suggest that misconduct and fraud were involved.
Even though calls for investigations are intensifying, that doesn’t mean Bankman-Fried’s arrest is imminent.
On the light side: S.B.F., an eager player of the League of Legends video game, has been getting shade from the likes of Elon Musk and Representative Alexandria Ocasio-Cortez for being a mediocre player.
Have normal times returned to Twitter?
Elon Musk is still running Twitter, so naturally, there is still plenty of drama around the social network — notably in the billionaire owner’s decision to actively promote the release of internal documents about executives’ 2020 decision to restrict tweets linking to a news report about Hunter Biden.
Despite that, it appears that some major advertisers are slowly returning to Twitter’s platform, after many hit pause following Musk’s promise to revamp how the site moderates user content.
Amazon plans to resume buying ads on Twitter, to the tune of $100 million a year, according to Zoë Schiffer of Platformer. Although the e-commerce giant, unlike others, had not quit its ad spending altogether since Musk’s takeover, it had paused some of its campaigns.
Meanwhile, Mr. Musk said in a live audio event on Twitter over the weekend that Apple had “fully resumed” ad spending on the social network. The iPhone maker has long been one of the biggest ad purchasers on Twitter. Last week, Mr. Musk said that he had resolved a feud with Apple, chalking up the disagreements to a misunderstanding.