Pocket News

Hey There!
Welcome to Clutch’s weekly Pocket News. 👛 GM to everyone except Sam Bankman-Fried (SBF). It’s been a devastating week for crypto users, with the so-called White Knight of crypto using FTX trading firm Alameda Research to misappropriate BILLIONS of dollars of customer funds.🤬 Now, many users are unable to retrieve their money, and all SBF had to offer was a disaster tweetstorm of an apology. To add insult to injury, FTX was hacked for $477 million on Saturday after filing for Chapter 11 bankruptcy, and Bitcoin dropped to the lowest it has been all year.📉 Morale is low, so every news highlight is getting a meme this week. In Clutch news, Bec released a series of TikToks with FTX updates you don’t want to miss! 💁🏼‍♀️ In Community Updates, BFF created a crypto glossary with all the terms you need to know! Buckle up! 🏎

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FTX 💩 the bed

Shock waves have ripped through the crypto community this week and Bec is covering it all!Check out Bec’s coverage on the FTX drama on her TikTok, @cryptobec_.
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Crypto News

FTX misappropriates billions of dollars of user funds, files for bankruptcy.

What would make a marketplace pull out of a deal with FTX? $10 billion of misappropriated user funds will. Binance CEO Changpeng “CZ” Zhao tweeted last Tuesday he was working with FTX CEO to acquire FTX after dumping all of its FTT holdings. Shit really hit the fan for FTX when this dump led other holders to liquidate their FTT holdings. Binance offered to buy FTX but backed out less than 48 hours later due to reports of FTX’s “mishandled customer funds and alleged US agency investigations.” FTX filed for Chapter 11 bankruptcy on Friday, and SBF resigned as CEO.

FTX hacked for $477 million.

FTX was hacked on Saturday following its Chapter 11 bankruptcy filing. The hacker had access to the cold wallet storage and apparently didn’t cover his tracks well, with many clues pointing to the hacker being an FTX insider. Kracken’s chief security officer stated in a Tweet that they know the hacker’s identity. It was initially estimated that $663 million was drained, but $477 million was stolen, and the rest was moved into cold storage by FTX.

Crypto lender BlockFi potentially filing for bankruptcy as FTX contagion spreads

BlockFi halted transactions last Thursday and may be preparing to file for bankruptcy after acknowledging “significant exposure” to FTX. BlockFi accepted $400 million worth of credit from FTX in July. BlockFi is also preparing to make job cuts. FTX’s bankruptcy froze millions worth of crypto company funds. 

Nike unveils Dot Swoosh NFTs.

Nike said the digital collection Dot Swoosh is set for release in January 2023. The collection includes digital sneakers and access to actual products and events IRL. Nike made its entrance into the Metaverse through the acquisition of the collectibles brand RTFKT in 2021. Nike plans on exclusively using Polygon to sell these NFTs instead of Ethereum’s mainnet, which they previously used for RTFKT drops.

Markets, you up?

Bitcoin(BTC) is down 12.34%, and Ethereum (ETH) is down 11.67%. Bitcoin hit a low of $15,708.95, while Ethereum hit a low of $1,087.75. This is due to the disastrous FTX collapse.

Community Update

BFF Crypto Glossary

BFF just created a crypto glossary with all the terms you need to know! Check it out here

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Written By

Nargiza Schmidt