FTX’s crash impacts the broader crypto industry, White House calls for crypto regulation and other news


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A week in review: November 6–12

Your weekly highlights to stay up to date with the latest crypto news

#1. FTX and Binance's ongoing saga: Everything that's happened until now

An earthquake rattled the crypto space this week, its impact felt in numerous related stories regarding FTX, Alameda Research and Binance. Although the bad news came rolling in this week, suspicions relating to FTX's status appear to have started on Nov. 2. The concerns had to do with a large number of FTX Token (FTT) held by Alameda (Sam Bankman-Fried, aka SBF, founded Alameda and co-founded FTX). By Nov. 6, Binance had decided it would sell its sizable position in FTT. FTX withdrawal issues surfaced on Nov. 7, symptomatic of a bank run. Binance expressed interest in buying FTX but declined the purchase, citing concerns on Nov. 9.

Other developments throughout the week included SBF reportedly requesting $8 billion to cover exchange withdrawals and news of the situation affecting other big players such as Sequoia Capital, as well as related regulatory headlines.

Nov. 11 saw SBF's resignation as well as FTX, Alameda and FTX US applying for Chapter 11 bankruptcy in the United States. About 130 entities under FTX Group are filing for bankruptcy.

#2. White House says 'prudent regulation of cryptocurrencies' is needed, hinting at situation with FTX

This week's turmoil has driven United States President Joe Biden's administration to keep an eye on the crypto space, with the help of U.S. regulatory bodies for enforcement. "The administration [...] has consistently maintained that without proper oversight, cryptocurrencies risk harming everyday Americans," White House Press Secretary Karine Jean-Pierre said during a press briefing on Nov. 10. "The most recent news further underscores these concerns and highlights why prudent regulation of cryptocurrencies is indeed needed."

#3. Post-election roundup: Who were the pro- and anti-crypto winners and losers from the US Midterms?

The U.S. Midterm elections occurred on Nov. 8. The crypto space had a presence in the elections, spanning a broad number of stances and positions on industry regulation held by involved politicians. Among the mix, J.D. Vance, a known Bitcoin owner, won an Ohio Senate seat. Tom Emmer and Patrick McHenry, two figures in favor of crypto, also retained their positions in Minnesota and North Carolina, respectively. Brad Sherman, who is less favorable toward the crypto space, achieved re-election in California, however.

#4. Prediction of the week. FTX ex-exec floats 'cool token' idea amid warning rebound may take years

Bitcoin started the week above $21,000, although the asset has fallen notably after the FTX news broke, dipping below $16,000 on Nov. 9, according to Cointelegraph's BTC price index. The asset subsequently bounced back up to $18,000, but then declined once again.

Pseudonymous Decentrader co-founder Filbfilb explained why the FTX situation is such a big industry event. His explanation essentially stated that all was fine during the most recent crypto industry bull market, but players became overextended. Then the bear market came along and declining prices created holes in company balance sheets. He explained that a healthy recovery could be a multi-year effort.

#5. FUD of the week. Report: Tether freezes $46M of FTX's USDT, setting new precedent

Stablecoin firm Tether Limited has seemingly frozen about $46 million worth of USDT held in FTX's Tron blockchain wallet, based on blockchain observations from Whale Alert on Nov. 10. Tether has not previously frozen a company or exchange wallet, only privately-owned wallets in tandem with regulatory investigations. In comments to Cointelegraph, a Tether spokesperson did not confirm the suspected freeze but noted the firm's regular communication with law enforcement in general.

#6. FUD of the week. BlockFi limits platform activity, including a halt on client withdrawals

Withdrawals and other features have been paused on BlockFi, with the digital asset lending platform explaining that it is waiting for clarity around the FTX ordeal. Additionally, BlockFi noted that customers should refrain from depositing on BlockFi wallets or its interest platform. BlockFi and FTX US previously struck a deal involving a $400 million line of credit given to BlockFi.

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