The FTX crypto exchange has officially declared bankruptcy and will liquidate, leaving many customers and creditors wondering if they will ever get their money back. FTX had claimed that customers would be fully repaid, but it seems that there may be some weasel wording in these statements, with some creditors claiming that it is unfair due to the crash caused by FTX. A lot of the assets in question are also illiquid altcoins, raising concerns about the fairness of repayment. This news comes as FTX continues to sort through millions of claims from creditors while also dealing with the appointment of an examiner.
In addition to FTX’s bankruptcy, Tether has reported a profit of $3 billion, predominantly from interest on US Treasuries and appreciation in their reserves of bitcoin and precious metals. Despite such claims, there are concerns about Tether’s financial practices with their issuance of tethers amounting to loans, leading to skepticism about the overall financial stability of the company. Elsewhere in the crypto world, Bitcoin mining stocks have been proven to be a less profitable investment, and the US Energy Information Administration is now requiring US bitcoin miners to detail their energy consumption.
If Tether lowers the risk, this would then open up a market to competitors with the same model, offsetting their apparent transfer. United States miners will now be required to detail their energy consumption as Bitcoin utilities more energy than the entire country of Utah, also, projected growth in global electricity demand from cryptocurrencies, data centers, and artificial intelligence will increase usage by the amount of energy consumed by Germany. There was a fifth round of sanctions on Hamas entities for the October 7 attacks on Israel by the United States Department of the Treasury, Coca-Cola was under fire after the January 6 insurrection in a suit by Trump supporters.
Overall, a string of events in the crypto and financial world has seen FTX declaring bankruptcy, Tether announcing significant profits, and Bitcoin mining stocks proving to be a less profitable investment. These events are indicative of the volatility and risks associated with the world of cryptocurrency and finance in general.