© Provided by TheStreetWhen Sam Bankman-Fried returned to the US, the bankruptcy of FTX hit the industry.
Cryptocurrency wants a little Christmas, but it's impossible.
Cryptocurrency investors have faced a series of setbacks and scandals, including the recent and most spectacular bankruptcy of cryptocurrency exchange FTX.
Sam Bankman-Fried, the founder suspected of stealing The Grinch's cryptocurrency, arrived in New York from the Bahamas over the holidays to face federal charges including wire fraud and campaign finance violations.
He got more bad news when two of his closest associates pleaded guilty to federal charges related to the collapse of the Southern District of New York, according to court documents.
Zixiao (Gary) Wang, 29, is the founder and former CTO of FTX. Caroline Ellison, 28, is the former CEO of Alameda Research, a hedge fund founded by Bankman Fried. They both agreed to provide any information to the authorities and provide further assistance in the investigation of the accident.
And the collapse of the Bankman-Freed empire seems like a welcome gift, only in a good way.
"FTX's bankruptcy appears to be a ripple effect in the audit industry," said Winston Ma, a professor at NYU Law School.
"Crypto world shaker".
The author of "Blockchain and Web3: Building Cryptocurrency, Privacy, and Security Foundation Metaverse" cites news that Mazars Group has cut ties with cryptocurrency companies, notably Binance, Crypto.com, and Kucoin. com.
"Due to concerns about how the public will perceive this report, Mazars has temporarily suspended the provision of reserve audit reports to organizations in the cryptocurrency sector," Mazars said in a statement.
Ma said in February that the company had "rejected another high-profile client, former President Donald Trump." He added: "The suspension of Mazars Group will shock the cryptocurrency world."
According to Ma, Mazars has issued Proof of Account Reports (PoRs) for cryptocurrency exchange clients, saying that AUP provides evidence-based reporting of financial information; no guarantee is disclosed, but the PoR report provided by Mazars is widely used. Audit" According to Mazars, this is the main reason for refusing this service.
Ma also said that accounting firm BDO, which recently signed off on a pending report for Tether.to, is evaluating its work with cryptocurrency firms, according to The Wall Street Journal.
A spokesperson for Binance told Blockworks that the big four audit firms — Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers — are "currently unwilling" to audit the cryptocurrency company's holdings.
"In short, after the disappearance of FTX, no big company is ready to grow yet," Ma said. "The industry is wondering who can fill the gap."
Basic science papers for chapter 11.
As of December 22, Bitcoin was unchanged at $16,781.99, according to CoinGecko. Ether, a coin on the Ethereum blockchain, closed at $1,209.75, while Dogecoin lost 1.1% to $0.076512.
Cryptographer James Edwards at Finder said Bitcoin could be sold below its production cost as another miner, Core Scientific, files for Chapter 11.
"Troublemakers can signal a big sell on the horizon, so they threaten the market," Edwards said. "While Core Scientific has filed for Chapter 11, they have likely liquidated assets to fight the bankruptcy as best they can."
However, "much uncertainty remains as another mining operation suggests Greenwich is in trouble."
"With two industry giants still dodging the rumors, Digital Currency Group (DCG) and Binance, it's unlikely traders will be moving in any direction anytime soon," Edwards said. "Earlier I expected the price to be locked when traders asked for confirmation."
Regarding DCG's investment portfolio, Edwards revealed that crypto assets such as FLOW, FIL and MANA were sold this week. . "Treasure."
Secret Canadian Crypto Exchange
According to David Lesperance, immigration and tax managing partner of North-facing Lesperance & Associates, more than 100 bitcoins were moved from a cold wallet that will shut down Canadian cryptocurrency QuadrigaCX last week.
“What makes it interesting is the idea that these wallets are out of anyone's control. “QuadrigaCX was abruptly shut down in February 2019, leaving millions of customer funds in offline cold wallets inaccessible. Gerald Cotton, CEO of the exchange, is responsible for the offline transfer of funds.
Lesperance says it's a feature he calls "cold storage," but the cold wallet addresses are known only to him.
“The sudden closing of the stock market and the death of Cotto in India have been the subject of many investigations and widespread conspiracy theories. "Ultimately, investigators discovered that the missing funds were not hidden in cold wallets, but disappeared through Cotton, who operated the stock market as a Ponzi scheme and private piggy bank."
Lesperance confirmed that the company's bankruptcy administrator, Ernst & Young, had not initiated the transfer.
In the year
"Ey Cotten said when he died that he was the sole owner of the Quadriga and the only one who could receive the money," Lesperance said. "So the crypto world will be resurrected in three years?"