Welcome to Barmy’s Daily Crypto News – November 17th, 2022
1.Sam Bankman-Fried feels regretting filing for bankruptcy
Sam Bankman-Fried, the former CEO of FTX, has expressed sincere regret for last week’s Chapter 11 bankruptcy filing, calling it his “worst single fuckup.”
Sam Bankman-Fried claimed that despite his several errors, the largest one was following advice and applying for Chapter 11 bankruptcy.
Bankman-Fried said that everything would be “about 70% rectified right now” and that “withdrawals would be opening up in a month with clients entirely whole” if he hadn’t filed for chapter 11 bankruptcy.
Bankman-Fried reportedly requested $8 billion in emergency finance from investors after acknowledging a “liquidity shortage” on November 8 and even offered his own fortune to “make customers and investors right.”
2. Tether efforts to increase transparency
The stablecoin operator said the reliability of its reserves is important to highlight “at a time like this.” Tether has historically had issues with transparency.
Tether issued a short statement on Nov. 16 saying that it has no exposure to institutional crypto lender Genesis Global or the Gemini Earn program after the announcement that Genesis Global and the Gemini exchange were freezing withdrawals. Genesis Global is the lending partner for interest-bearing Gemini Earn.
The revelation on November 16 was “part of Tether’s ongoing efforts to promote openness,” according to Tether. Tether has fought calls for it to demonstrate the stability of its stablecoin, and it lost a case launched by the Office of the New York Attorney General to make that information public in February. As part of the agreement to resolve that lawsuit, Tether hired BDO Italia in July to carry out monthly evaluations and attestations of its reserves for public publication.
The stablecoin has been pretty open about reducing the amount of commercial paper in its reserves to zero during the year.
3. Bybit releases reserve wallet addresses
Bitcoin exchange On November 16, Bybit made the addresses of its biggest crypto wallets available to the public. This happened soon after FTX collapsed and calls for more transparency in the sector. The addresses were provided in a press release by Bybit.
Additionally, Nansen created a dashboard of Bybit’s wallets, showing that the exchange has over $1 billion in Bitcoin as assets. According to the company’s press statement, these assets account for more than 85% of the exchange’s entire bitcoin holdings.
The second-largest cryptocurrency exchange in the world by volume, FTX, has been unable to process withdrawals and has declared bankruptcy, causing a crisis in the cryptocurrency market. Changpeng Zhao, CEO of Binance, has argued that all exchanges should develop a proof-of-reserves protocol to demonstrate to the public that their assets are equal to or higher than their liabilities in the wake of this catastrophe.
Bybit’s disclosure of wallet addresses does not provide a proof of reserve because it does not give clients access to a Merkle tree of the exchange’s liabilities. However, if Bybit decides to do so, disclosing the wallet addresses is a need before producing a proof of reserve.
4. Abu Dhabi has granted Binance permission to offer financial services
Financial Services Regulatory Authority and Abu Dhabi’s Global Market (ADGM) have given cryptocurrency exchange Binance permission to operate in the area.
Binance will be authorized to provide cryptocurrency custodial services to professional clients after it has satisfied the requirements for its Financial Services Permission, according to a declaration from the financial hub of the capital of the United Arab Emirates.
Changpeng Zhao, founder and CEO of Binance, attended Abu Dhabi Finance Week before the news broke. At the occasion, Zhao shared the platform with Mike Novogratz, CEO and investor of Galaxy Digital, for a lengthy discussion that included the fallout from the ongoing FTX bankruptcy.
After receiving in-principle approval from ADGM in April 2022, Binance had already established a presence in Abu Dhabi. Consequently, the exchange was given the green light to act as a broker-dealer for cryptocurrencies and other digital assets.
5. zkSync developer Matter Labs raises $200M
The creator of the Ethereum Virtual Machine-compatible zkSync, Matter Labs, has gained significant industry support as it makes a commitment to fully open-source its platform, the first such effort for a zk-Rollup technology.
On Nov. 16, Matter Labs said that it has closed a $200 million Series C fundraising round that was co-led by Blockchain Capital and Dragonfly. LightSpeed Venture Partners, Variant, and current investor Andreessen Horowitz also participated. In total, the company has now secured $458 million in capital, including $200 million from BitDAO that will be used to support ecosystem projects.
Ethereum has received widespread support from the blockchain community’s developer community, but scalability concerns have hampered the technology’s potential to be used widely. The layer-2 scalability solution for Ethereum that preserves the network’s security and decentralized aspects is called zkSync, a zk-Rollup technology.
The zkSync mainnet was launched on October 28 as part of a multi-stage process to bring the protocol into full production. Since then, over 150 projects have declared their intention to start on it. Chainlink, Uniswap, Aave, Curve, 1inch, and SushiSwap are a few of its most noteworthy partners.
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