A day after Sam Bankman-Fried’s digital asset empire filed for Chapter 11 protection, the former cryptocurrency mogul was questioned by Bahamian police and regulators, according to a person familiar of the matter. Analysts say that around $662 million worth of tokens have mysteriously exited international and US FTX exchanges.

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(Bloomberg) — A day after Sam Bankman-Fried’s digital asset empire filed for Chapter 11 protection, the former cryptocurrency mogul was questioned by Bahamian police and regulators, according to someone familiar with the matter. Analysts say that around $662 million worth of tokens have mysteriously exited international and US FTX exchanges.

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FTX had begun moving some of its assets to offline wallets and later accelerated those moves “to mitigate the harms by observing unauthorized transactions,” according to US platform general counsel Ryne Miller. According to investment materials seen by the Financial Times, FTX Trading International held just $900 million in liquid assets on Thursday against $9 billion in liabilities.

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Former Treasury Secretary Lawrence Summers likened the crash to the demise of energy company Enron Corp, while the Securities and Exchange Commission and Commodity Futures Trading Commission are investigating whether FTX mishandled client funds, according to people familiar with the question.

Key stories and developments:

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  • Bankman-Fried: From Crypto King to King of Tech Bubble’s Losers
  • Cryptocurrency markets take a breather as the FTX heist unfolds
  • “It’s all over”: FTX bankruptcy is retail traders’ worst fear
  • Alpha-Male Crypto “Bloodsport” wreaks havoc on FTX

(All timestamps are New York)

Bankman-Fried Interviewed by Bahamian Police (9:42pm)

Former cryptocurrency mogul Sam Bankman-Fried was questioned on Saturday by Bahamian police and regulators, according to a person with knowledge of the matter. Bankman-Fried did not immediately respond to a request for comment.

The Bahamas Says It Didn’t Allow Local Withdrawals Through FTX Exchange (9pm)

Bankrupt cryptocurrency exchange FTX’s move to allow withdrawals in the Bahamas has been questioned by the nation’s securities regulator.

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The Securities Commission of the Bahamas in a statement on Saturday said it had not “directed, authorized or advised” the priority of local levies to FTX Digital Markets Ltd.

He added that those withdrawals could be recovered.

Jump Crypto Says It Remains Well Capitalized After FTX Exposure (17:59)

Jump Crypto, a cryptocurrency trading firm, told clients on Saturday that it remains “well capitalized” after exposure to FTX. In a series of tweets, Jump said its exposure was “managed in accordance with our risk framework.” The company did not specify the exact nature of its exposure to the collapse of Sam Bankman-Fried’s digital assets empire. The certainty of Jump comes after FTX was hit by a mysterious outflow of approximately $662 million in tokens.

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FTX Will Ask For Execution Help On Unauthorized Withdrawals (1:46pm)

FTX is launching an investigation with law enforcement agencies into unauthorized withdrawals from some of its crypto wallets, a company executive said. The company, which filed for bankruptcy this week, said it was working and coordinating with “law enforcement agencies and relevant regulators.”

Liabilities Liquid Assets Devalued: FT (13:13)

FTX Trading held $900 million in liquid assets against $9 billion in liabilities the day before it filed for bankruptcy, the Financial Times reported, citing investment materials and a spreadsheet the paper had seen. Most of the registered assets are either illiquid venture capital investments or crypto tokens that are not widely traded. Thursday’s biggest asset was a $2.2 billion trade in a cryptocurrency called Serum.

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Some FTX Staff Leaving for HK: Semafor (11:55am)

Engineers and traders working at FTX and Alameda Research in the Bahamas, where the cryptocurrency exchange is based, have departed for Hong Kong and elsewhere, Semafor said, citing people close to current and former Caribbean-based FTX employees. Bankman-Fried and most of her inner circle are still in the Bahamas, the report said.

Kraken to help probe unauthorized withdrawals (11:51)

Cryptocurrency exchange Kraken has said it knows the identity of an attacker who made unauthorized withdrawals from FTX’s rival platform. On Saturday, the perpetrator transferred some funds from a Kraken account to the wallet they were using to hold some stolen tokens, blockchain security firm Hacken.io said, citing transaction data. Kraken was then able to identify the attacker by checking its platform for original address data, its chief security officer Nick Percoco said in a tweet.

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Cryptocurrency Markets Take a Breath (9:16)

The price of the two largest tokens by value, Bitcoin and Ether, were largely unchanged on Saturday, with cryptoasset prices broadly stable as traders weigh their next moves following this week’s market sell-off and the collapse of FTX, one of the largest trading platforms in the industry. “We are in the midst of another deleveraging event in the cryptocurrency ecosystem and so far it has had limited repercussions on the broader stock markets beyond sentiment as crypto institutions lend to each other,” they said on Friday. in a note the analysts of Morgan Stanley.

Yellen says debacle shows need for regulation (5:48)

US Treasury Secretary Janet Yellen said the FTX implosion “shows the weaknesses” within the sector and that the market for digital assets requires “very careful regulation”. She added that digital assets are not currently a threat to the broader financial system.

FTX Hit by Mysterious Outflow of Approximately $662 Million (3:03)

Blockchain analyst firm Nansen, which provided an overall estimate of $662 million in withdrawals, said the coins exited international and US FTX exchanges. Elliptic said early indications show nearly $475 million has been stolen in illicit transactions, with stablecoins and other tokens being rapidly converted into Ether on decentralized exchanges — “a common technique used by hackers to prevent the their loot be seized”.



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