- Crypto Cooler
- Posts
- $7 Billion Recovered from FTX Collapse!
$7 Billion Recovered from FTX Collapse!
Market Monday & More, Sorry its Tuesday :)
Jayson Hanlon
June 27, 2023
The cool side of the blazing crypto ecosystem.
A Web 3.0 newsletter covering the latest news that matters.
What’s in today’s cooler:
Market Monday Update
$7 Billion Recovered on FTX’s Behalf
FedNow is Coming Soon
More On Tap News
Market Monday Update
Market Price - Tuesday 6:00 pm PST
$7 Billion Recovered on FTX’s Behalf
You heard that right, $7 billion in liquid assets from FTX has been recovered by debtors. If we recall, FTX owes customers $8.7 billion when the exchange collapsed. Many may think well, 80% is better than nothing, but the question remains.
Will this $7 billion go towards the money owed to customers?
As in the form of fiat currency and stablecoin that had been misappropriated. Despite the ongoing challenges created by the commingling of customer deposits and corporate assets, and other mismanagement of the FTX group, the Debtors continue to make substantial progress in their ongoing efforts to identify, secure and recover assets for the estate.
The challenging part is noted to be from;
FTX.com where customer deposits happen, and the misuse and commingled funds has occurred for many years.
FTX Group where management did governance, finance, cybersecurity, asset management and more.
As we recall, FTX used QuickBooks… And I am pretty sure they didn’t give many updates and keep track of everything properly like a billion dollar company should.
Hopefully more good news to come and more money can be recovered to customers! Debtors Report Here.
Coming Soon - FedNow
Jerome Powell testified before congress on June 21, 2023. He had an important agenda to present the role of stablecoins within the Federal Reserve.
First highlighting the launch of FedNow, which will be an inter-bank communication platform, as a crucial development in monetary policy, regulation and capital requirements. This will give them more control with overnight banking rates and facilitate the transfer of Treasuries between banks.
So what does this really mean? I asked ChatGPT to explain this concept like I am 5 years old.
FedNow is like a special tool that the Federal Reserve (the Fed) is going to use to control how much it costs for banks to borrow money from each other overnight. Banks sometimes need to borrow money from other banks to meet the needs of their customers. The Fed wants to make this process more efficient and have control over it all the time, every day of the year.
One way banks borrow money is through something called a "repo." This is like an agreement where one bank lends money to another bank for a short time, usually overnight. The borrowing bank gives some valuable things, like government bonds, as collateral. The next morning, the borrowing bank buys back their assets and pays a fee to the lending bank. Sometimes, it happens the other way around, where a bank with a lot of bonds needs cash, so they ask another bank for money. This is called a "reverse repo."
Sometimes, banks can have trouble with not enough cash or not enough bonds, and that can cause problems. The Fed wants to make sure that doesn't happen, so they created new ways to help banks with their cash needs. FedNow is a digital tool that will let the Fed have complete control over how much it costs for banks to borrow money overnight and how they can transfer important things like government bonds between banks. This will make sure that more activities with the U.S. dollar happen in the United States and not in other countries.
Powell did talk about a Central Bank Digital Currency, CBDC stating,
We would not support a central bank digital currency for individuals. If we did have a CBDC, it would be intermediated by banks.
As more information comes out with lawsuits and giant institutions becoming interested with digital currency and Bitcoin, the Fed and SEC are working on their regulator stance and are trying to keep up.
Read More in depth Here.
On Tap News
Brazilian Hospital Accepts Payments in Crypto - This could be BIG NEWS.
Sam Bankman-Fried Recorded a MasterClass Before FTX Shut Down - I think it should still come out, would be funny to see.
Victory for Coinbase in Supreme Court Arbitration Lawsuit - Hopefully many more victories to come!
Share the Crypto Cooler
We can hardly contain our excitement as we grow we want to gear up and unveil a brand-new referral program. We want to hook you up with some cool rewards, including stickers, nifty dad hats, and more.
Stay tuned to be rewarded!
Disclaimer: The information shared in this newsletter is for informational purposes only and should not be considered financial advice. It is crucial to conduct independent research and consult with a financial advisor before making any investment decisions.
Reply