Monat: November 2022

Gary Gensler, the Chair of the US Securities and Exchange Commission (SEC) says lack of disclosure and too much leverage are two factors hurting the crypto industry.

The SEC Chair’s comments on Thursday come at a time when the crypto sector is firmly in the spotlight again. This time, it’s the shock of what has happened with the FTX crypto exchange.

As CoinJournal reported earlier today, FTX is insolvent and this just added the inreased regulatory attention and overall rage around the crypto community.

Leverage and no disclosure is a ‘toxic mix’

As has been reported widely, FTX’s implosion is down to Alameda Research’s blowing billions in trading, and leaving FTX with an $8 billion hole. That money belonged to FTX customers.

“When you mix together a bunch of customer money and borrowing against it, investors get hurt,” Gensler told Andrew Ross Sorkin on CNBC’s ‘Squawk Box’.

He added: “This is a very interconnected world in crypto with a few concentrated players. When markets turned on them it appears that a lot of customers lost money.”

Gensler has previously called on crypto exchanges and other providers to embrace regulation as well as offer more disclosures to better protect investors.

“It’s a field that’s significantly non-compliant, but it’s got regulation,” the SEC Chair said, pointing out that crypto investors from all over the world are getting rekt. And other than leverage, consumers are falling prey to promotions from celebrities and there isn’t much disclosure.

“This is not like the NYSE or Nasdaq. These platforms co-mingle. It’s a toxic combination where they take people’s money, they borrow against it. But not much disclosure, and then they trade against their customers,” ”he regulator explained.

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• Voyager’s Committee of Unsecured Creditors (UCC) has said that Voyager has yet to transfer any assets to FTX.
• The committee tweeted that the deal to have the bankrupt crypto lender sell its assets to Sam Bankman-Fried’s FTX has not been finalised.

Voyager, the bankrupt crypto lender that was in the process of selling its assets to FTX, is yet to transfer any assets to the beleaguered crypto exchange.

The Voyager token VGX,  which rose significantly when it first emerged FTX would be acquiring the crypto lender’s assets, was trading nearly 14% up Thursday afternoon (15.00 am ET). The FTX token was also up 8% at the time, with the gains coming amid a broader market upside.

Voyager’s yet to sell assets to FTX

According to a statement from Voyager’s Official Committee of Unsecured Creditors (UCC), the recent approval allowing FTX to buy Voyager assets after winning an earlier action has “not been consummated.”

“We want to make clear that the FTX/Voyager transaction has not been consummated. Voyager has not transferred any crypto or other assets to FTX in connection with the transaction,” reads part of the statement the committee tweeted on Thursday.

As a result of developments involving FTX, the UCC says it’s going to take every step necessary in the quest to protect creditors. The team is currently evaluating all available options, they noted.

The UCC’s communication on Thursday comes in the wake of FTX’s halting of customer withdrawals in the midst of a liquidity crunch.

It also follows reports that Sam Bankman-Fried irresponsibly moved billions of dollars of customer funds to Alameda Research, the crypto exchange’s trading arm that is said to have blown everything.

Alameda reportedly owes FTX $10 billion while Bankman-Fried has noted that the exchange needs an emergency bailout of $8 billion.

The post Voyager hasn’t transferred any assets to FTX: UCC appeared first on CoinJournal.