The Crypto News Recap is your weekly pulse of the markets, helping you track every single important news story that happened in the crypto sphere. This week, the crypto sphere was rocked by a lethal cocktail of the collapse and then the hack of FTX, and foul play and market manipulation of Houbi, Gate.io and Crypto.com.
On an opptismtic note, Ethereum turns deflationary for the first time since the Merge! Let’s dive in
Crypto Exchange FTX Collapese Then Hacked!
Thanks to the snail-like pace of crypto regulation and legislation in the US, FTX, one of the largest cryptocurrency exchanges in the world worth $32 billion at the beginning of the year and Alameda Research, the trading firm at the center of the shakeup, all owned by now-former billionaire Sam Bankman-Fried filed for Chapter 11 bankruptcy, capping a week full of cray speculations, gruesome tweets, jaw-dropping revelations, and tumbling prices.
More than 100,000 creditors are listed in the filings, along with assets and liabilities totaling between $10 billion and $50 billion each. The defunct cryptocurrency tycoon announced that Alameda would be winding down and that he would step down as FTX Group's CEO. John J. Ray III, a lawyer well known for clearing up the disgraced energy company Enron, will take his place. After the announcement on Friday, the cryptocurrency markets, already down 20% over the previous week, crashed, sending the price of bitcoin to two-year lows of $16,721.
$266M has been withdrawn from FTX in the last 24 hours
— Nansen ? (@nansen_ai) November 12, 2022
$73M from FTX US pic.twitter.com/qoiroPSegq
On November 11, cryptocurrency exchange that has shut down experienced a number of unauthorized transactions, leading to several cautions from users and analysts against using its mobile application or website. Wallets connected to FTX experienced outflows totaling about $266.3 million, according to analytics company Nansen. A separate American company called FTX US reportedly had $73.4 million stolen from it.
Huobi, Gate.io, and Crypto.com Backlashed for allegedly sharing snapshots using loaned funds
When a Twitter user highlighted a transfer of 320,000 ETH from Crypto.com to a Gate.io address, community concerns that some cryptocurrency exchanges, including Gate.io, Houbi, and Crypto.com, appear to be fabricating their reserves were raised.
After Huobi released the asset snapshot of the asset reserve, 10,000 ETH was transferred from 0xca...c3fc (Huobi 34) to Binance and OKX deposit wallets. The Huobi 34, which had 14,858 ETH at the time of the snapshot, currently has only 4,044 ETH left. https://t.co/wrphZxadBM pic.twitter.com/B2lRXMF8su
— Wu Blockchain (@WuBlockchain) November 13, 2022
Conor cited Etherscan data that showed Crypto.com sent the money to Gate.io on October 21 and that Gate.io returned 285k ETH a week later. He pointed out that Crypto.com was linked to both the sender and the recipient addresses.
If an exchange have to move large amounts of crypto before or after they demonstrate their wallet addresses, it is a clear sign of problems. Stay away. Stay #SAFU. ?
— CZ ? Binance (@cz_binance) November 13, 2022
Changpeng Zhao, the CEO of Binance, also commented on the situation, stating that it is a "clear sign of problems" when an exchange moves significant amounts of cryptocurrency before or after its proof-of-reserve.Changpeng Zhao, the CEO of Binance, also commented on the situation, stating that it is a "clear sign of problems" when an exchange moves significant amounts of cryptocurrency before or after its proof-of-reserve.
For the first time post-merge, Ethereum is defloationary!
As a result of Ethereum's fee-burning mechanism, as of Nov. 9 more ether tokens are being burned than are being created. Simply put, ETH transaction fees are burned more when there are more on-chain transactions.
Since the fee-burning mechanism was introduced in August 2021, 2.72 million ETH have been burned in total on the Ethereum network. That works out to almost 4 ETH being permanently destroyed every minute.
