The Disrupt

“The DOJ, which was already looking into the fall of Sam Bankman-Fried’s global crypto enterprise, now wants a bankruptcy court to appoint an independent examiner to probe potential wrongdoing that may have led to the collapse.

An examiner could – and should – investigate the substantial and serious allegations of fraud, dishonesty, incompetence, misconduct and mismanagement by the Debtors.

There is a substantial basis to believe that CEO Bankman-Fried along with other managers mismanaged the company or engaged in fraudulent conduct.

An examination would be preferred to an investigation because the former can be made public, which ‘is especially important because of the wider implications that FTX’s collapse may have for the crypto industry.’ In the same filing, the FTX collapse was described as the ‘fastest big corporate failure in American history.'”

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“The self-custody platform acquired by Celsius over a year ago was put on the block following the lender’s bankruptcy filing in July. Celsius acquired GK8 in November 2021 for $115 million.

Galaxy’s aim with the acquisition is to expand its prime brokerage offering. Around 40 people would be joining Galaxy’s team, including blockchain engineers and cryptographers.”

See Also: FTX Japan Plans to Restart Local Customer Withdrawals
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“The online crypto community has discovered a new artificial intelligence (AI)-powered chatbot that can either be used to warn developers of smart contracts vulnerabilities or teach hackers how to exploit them. ChatGPT, a chatbot tool built by AI research company OpenAI, was released on Nov. 30 and was designed to interact “in a conversational way” with the ability to answer follow-up questions and even admit mistakes, according to the company.

The co-founder of smart contract auditing firm Zellic asked ChatGPT to help find an exploit, presenting a piece of smart contract code. The bot responded by noting the contract had a reentrancy vulnerability where an exploiter could repeatedly withdraw the funds from the contract and provided an example of how to fix the issue. Twitter user devtooligan shared a screenshot of ChatGPT, which provided the exact code needed to fix a Solidity smart contract vulnerability commenting:

Mind-blown. We’re all gonna be out of a job.”

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“On a DEX it is virtually impossible to inconspicuously commingle funds (as the FTX centralized exchange appears to have done). That’s driven lots of new interest to some of the earliest decentralized players.

DeFi is hardly a magic salve for crypto’s multi-billion-dollar woes. Protocols can get hacked, duped, drained and worse, costing their users massive aggregate losses. In contrast with the “black boxes” of centralized exchanges, though, DEXs operate according to their open-source code. DEXs have on-chain assets that are open for all to see – so long as one knows where to look.

That’s easier said than done, however. Drift Protocol, GMX and Perpetual Protocol have [now] commissioned asset dashboards on data site Nansen that showcase the health of their respective exchanges. Among the information included in the dashboards are token allocations and debts owed by the protocols. Their efforts are the on-chain equivalent of the “proof of reserves” movement sweeping across centralized exchanges.

At the same time, many decentralized protocols are readying their defenses against an expected regulatory onslaught. Their fear is that financial regulators, already spooked by FTX’s apparent misdeeds, will want to regulate DeFi, too.

‘A lot of us raised concerns about how DeFi derivatives platforms do not have a strong voice.’ David Lu said GMX, Drift, Perpetual Protocol as well as dYdX are pooling their efforts to have a larger collective clout.”

See Also: Avalanche-Based DEX Trader Joe to Soon Deploy on Ethereum Scaling System Arbitrum

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“Liquidators for Three Arrows Capital have seized $35.6 million from the collapsed crypto hedge fund’s bank accounts in Singapore, three months after getting the nod from that country’s High Court to begin probing the firm’s assets in the country. Liquidators have also recovered $2.8 million from forced redemptions of investments, as well as an unspecified number of crypto tokens and non-fungible tokens (NFTs).

Liquidators’ task of hunting down and preserving Three Arrows’ remaining assets so that they can be returned to investors isn’t an easy one, and the hedge fund’s founders Kyle Davies and Su Zhu haven’t made it any easier, according to Teneo, which said both men have been uncooperative since the summer.

Su and Davies claim to be in Dubai and Bali, respectively – and liquidators point out that both places are ‘jurisdictions known for difficulties in enforcing foreign court orders.’ When liquidators gained access to the fund’s Singapore office, ‘most physical documents, servers and hard drives had been removed,’ according to the documents published Friday. Lawyers for Su and Davies have failed to provide a complete set of financial records.

Liquidators also addressed the status of the $50 million, 500-ton superyacht – christened the Much Wow – Su and Davies purchased before their company collapsed. According to the presentation, liquidators confirmed that Su and Davies made payments for the yacht directly from the company’s coffers. When that money dried up, the contract to purchase Much Wow was terminated by the ship’s builder Sanlorenzo, and the yacht was put back on the market.”

See Also: Legal team for 3AC liquidators blast founders for shifting blame to FTX, media blitz amid bankruptcy
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“With the integration, users will be able to access a feature that lets them drag and drop media files into the browser, which writes a smart contract and uploads the file into a blockchain, turning the files into NFTs.

Now, our users will be able to create NFTs instantly and simply with no platform usage fees, encouraging more people to explore the burgeoning NFT industry.”

See Also: Firefox dev Mozilla goes all-in on metaverse, acquires Active Replica

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