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Can the bankruptcy of FTX bring order to its chaos? • TechCrunch


Welcome back to Chain reaction.

Last week on the podcast we talked about the collapse of FTX, which is still ongoing. This week we are taking a break from our Thursday news episode for Thanksgiving, but we had plenty of stories for you on the TechCrunch website, including some from our crypto event in Miami last week.

Before getting to the heart of the matter, Anita wanted to share a personal note:

Hello everyone! It’s bittersweet to share that my time at TechCrunch is over, and with it, my participation in the Chain Reaction newsletter and podcast. I have learned so much about the wild world of crypto from your side every week. I’m sad to say goodbye, but I know you’ll be in good hands with Jacquelyn and the rest of the TechCrunch team. As for me, feel free to connect on Twitter, where I share more about my next professional steps. Thank you for reading and listening each week. I appreciate you all so much!

If someone forwarded this message to you, you can sign up on TechCrunch’s newsletter page.

this week in web3

Here are some of the biggest crypto stories TechCrunch has covered this week.

FTX Bankruptcy Hearing Details Due Diligence by ‘Inexperienced and Unsuspecting Individuals’ (TC+)

Hearings that will determine the fate of FTX, once one of the largest crypto exchanges in the world, began in US Bankruptcy Court for the District of Delaware on Tuesday. “We are here for an unprecedented matter and I do not say these words lightly,” said James Bromley, partner at Sullivan & Cromwell and co-head of the firm’s global restructuring practice, during the audience. “This is a day one hearing well over a week after they were filed; that in itself is unusual. But what we have here [ … ] is another type of animal.

NFT Marketplace Magic Eden Integrates with Polygon to Develop Blockchain Game

NFT Marketplace Magic Eden integrates with Ethereum Polygon’s scaling layer 2 blockchain to dive deeper into blockchain and NFT gaming ecosystems, the companies announced on Tuesday. The expansion aims to provide Magic Eden with the ability to support Polygon’s ecosystem of developers and game creators. The Polygon network is home to some of the biggest Web3 game projects and publishers like Ubisoft, Atari, Animoca Brands, Decentraland, Sandbox, among others.

FTX processed billions of dollars a month in Africa before going bankrupt

On November 14, Nestcoin, one of the startups spearheading crypto and web3 efforts in Africa, announced that it was laying off several employees. At least 30 employees from various departments have been made redundant, while those who remained with the company saw their salaries cut by 40%, according to people familiar with the matter. The news is, in part, related to the downfall of crypto exchange FTX, according to chief executive Yele Bademosi.

Crypto firm Genesis says it has ‘no plans to file for bankruptcy imminently’

Genesis, a digital asset financial services company, could be in hot water as it seeks to raise fresh capital for its lending unit or risks bankruptcy if it cannot, according to a report by Bloomberg. “We have no plans to file for bankruptcy imminently,” a Genesis spokesperson said in a statement emailed to TechCrunch on Monday. “Our goal is to resolve the current situation in a consensual manner without the need to file for bankruptcy. Genesis continues to have constructive conversations with creditors.

Binance’s CZ on FTX: “We broke the camel’s back”

Binance co-founder and CEO Changpeng Zhao, also known as CZ, commented on the collapse of FTX during TechCrunch Sessions: Crypto 2022. He downplayed his personal role in the series of events that ultimately leads FTX to file for bankruptcy. “I still don’t think I have that much influence. I think we were the straw that broke the camel’s back. It’s not a really solid straw,” he told TechCrunch’s Anita Ramaswamy. “There are a whole bunch of things that have accumulated. I may be the last thing that pushed him.

the last module

This week we skipped the news episode thanks to good old Thanksgiving as we mentioned above. But, in Chain Reaction Tuesday Episode we play a super timely recording of Anita’s panel on stage last week with Binance Founder and CEO Changpeng “CZ” Zhao. CZ has sent a number of shocks through the crypto ecosystem over the past few weeks, so Anita dove in:

  • His tweets about rival exchange FTX which sparked a firestorm and whether he anticipated their impact
  • What Binance is doing to gain user trust and demonstrate transparency despite its regulatory issues around the world
  • Revenue Streams and Binance’s Strategy for Overcoming a Just Worse Crypto Slowdown

To subscribe to Chain reaction on apple podcast, Spotify or your favorite pod platform to follow the latest episodes, and leave us a comment if you like what you hear!

follow the money

  1. Carv valued at $40m as investors rush to back Web3 identity builders
  2. Zulu Banks $5 Million For Its LatAm Digital Wallet Amid Soft Crypto Ground
  3. Game developer Thirdverse raises $15 million to create a web3 and VR game studio
  4. Privacy and Ethereum-Focused Infrastructure Startup Nucleo Raises $4M in Funding Round Led by Bain Capital Crypto and 6th Man Ventures
  5. Utilities platform NFT Tropee closes €5m in funding round led by Tioga Capital

This list was compiled with information from Messari as well as TechCrunch’s own reports.



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