Morning Post - November 18

headlines

▌CZ: Industry recovery fund or as much as 2 billion US dollars

TechCrunch reporter Jacquelyn Melinek said on personal social media that Binance founder CZ said that he has been discussing the industry recovery fund, which may amount to as much as 2 billion US dollars. According to previous news, Binance will set up an industry recovery fund to help high-quality projects survive the liquidity crisis.

policy

▌CFTC commissioner: LedgerX is being monitored and supervised "on a daily basis"

U.S. Commodity Futures Trading Commission (CFTC) Commissioner Kristin N. Johnson told a conference on cryptocurrency regulation in London on Thursday that the regulator has taken "substantial steps" against FTX's U.S. subsidiary, LedgerX, which is being monitored and supervised "on a daily basis." , to “supervise that every dollar of customer assets held by LedgerX can continue to be used.” LedgerX is the “point of interaction” between the CFTC and FTXUS, which applied to register with the CFTC as a derivative in 2017 before being acquired by FTX last year clearing house. The CFTC has asked LedgerX to maintain funds independently, submit monthly, quarterly and annual inspections, and certify the authenticity of assets held on behalf of clients through balance sheets and verified bank statements, Johnson said. It also requires FTX to hold reserves, including a one-year liquidity reserve, and not to draw, pledge, or reinvest working capital.

▌FSB official: cryptocurrency will soon threaten global financial stability

Steven Maijoor, chair of the Financial Stability Board's (FSB) working group on encrypted assets, said on Thursday that recent market turmoil has given the FSB even more reason to develop a globally consistent regulatory framework. The rapid growth of crypto markets, amidst structural loopholes and inadequate regulation, means that they will “soon reach a point where they pose a threat to the stability of the global financial system. Many crypto markets are characterized by high levels of information asymmetry, so often There is no way of knowing which actors have bad intentions and which platforms are at risk of overextending. Cryptocurrencies cannot simply be dismissed as a fad” and much crypto activity does not comply with existing regulations or occurs outside regulatory boundaries.

cryptocurrency

▌FTX U.S. lawyer accuses SBF tweet of allegedly avoiding U.S. courts

In a court filing, FTX US attorneys accused SBF of continually making damaging tweets, appearing to be avoiding US courts in favor of the Bahamas, expanding the scope of FTX’s litigation in the Bahamas, and transferring assets from the control of the US courts to the Bahamas under government-controlled accounts. FTX is currently controlled by restructuring lawyer JohnJ.RayIII, who once took over the liquidation of Enron. He asked a federal judge in Wilmington, Delaware, to transfer to Delaware a competing bankruptcy case brought by Bahamas liquidators in New York that would consolidate all of FTX’s U.S.-based bankruptcy proceedings into one court. Delaware judges are also asked to prevent all and all government entities from taking action in any court around the world to seize assets or collect money from this FTX.

▌Wall Street Journal: Genesis Seeks $1 Billion Emergency Loan

Genesis had until 10 a.m. Monday to seek access to $1 billion in emergency credit facilities, citing tight liquidity. The company failed to secure the funding, according to a confidential fundraising document reviewed by The Wall Street Journal.

▌Coinbase CFO: FTX bankruptcy is more and more like the 2008 financial crisis

Coinbase Chief Financial Officer Alesia Haas (Alesia Haas) said that the bankruptcy of FTX is not the end of the event, and it will have a comprehensive impact on the cryptocurrency industry, but the impact has not yet been seen. FTX's bankruptcy looks more and more like the 2008 financial crisis.

▌Public chain SuiNetwork launched its testnet

The LayerOne blockchain created by former Meta (formerly Facebook) engineers announced the opening of the testnet. The team stated that the testnet Wave1 focuses on operators, especially validators and participants who operate full nodes. In Wave1, Sui's goal is to improve decentralized coordination and incident response, and identify a core set of operators experienced in deployment, monitoring, and debugging. Additionally, unlike Devnet, on Testnet, event management will be driven by the community, not MystenLabs, which will allow community members to provide more input and take greater responsibility for maintaining Sui’s health. As previously reported, in September, MystenLabs, the company behind SuiBlockchain, raised $300 million in a round of financing led by FTXVentures, which valued MystenLabs at $2 billion.