My Writings. My Thoughts.

Monday November 21, 2022

// November 21st, 2022 // Comments Off on Monday November 21, 2022 // Daily News

In response to FTX being exposed for its criminal activity involving money laundering and illegal contributions to the Democratic National Committee

FTX will sell or restructure global empire, CEO says

FTX’s new CEO said on Saturday that the bankrupt crypto exchange is looking to sell or restructure its global empire, even as Bahamian regulators and FTX squabble in court filings and press releases about whether the bankruptcy filing should proceed in New York or in Delaware.

“Based on our review over the past week, we are pleased to learn that many regulated or licensed subsidiaries of FTX, within and outside of the United States, have solvent balance sheets, responsible management and valuable franchises,” FTX chief John Ray, said in a statement.

Ray, who replaced FTX’s founder Sam Bankman-Fried when the company filed for Chapter 11 bankruptcy protection on Nov. 11, added that it is “a priority” in the coming weeks to “explore sales, recapitalizations or other strategic transactions with respect to these subsidiaries, and others that we identify as our work continues.”

Ray’s statement came with a flurry of Saturday morning filings in Delaware bankruptcy court. In those filings, FTX asked for permission to pay outside vendors, consolidate bank accounts, and establish new ones.

The exact timing of a possible sale is unclear. FTX indicated that it has not set a specific timetable for the completion of this process and said that it “does not intend to disclose further developments unless and until it determines that further disclosure is appropriate or necessary.”

Both FTX and Bahamas securities regulators are seeking jurisdiction over the bankruptcy process in two different U.S. courts. Last week, Bahamian regulators moved potentially hundreds of millions of “digital assets” from FTX custody into their own, acknowledging the deed in a press release after FTX attorneys accused them of doing so in an emergency court filing.

Ray singled out some of the company’s healthier subsidiaries for praise. One example was LedgerX, a Commodity Futures Trading Commission-regulated derivatives platform. LedgerX was one of the few FTX-related properties that are not a part of its bankruptcy proceedings and remains operational today. The platform, which FTX acquired in 2021, lets traders buy options, swaps and futures on bitcoin and ethereum.

The new FTX CEO asked that employees, vendors, customers, regulators and government stakeholders “be patient” with them.

FTX said in a filing that there could be more than one million creditors in these Chapter 11 cases.

FTX and its accountants had identified 216 bank accounts, across 36 banks, with positive balances globally. Cash balances across all entities totaled some $564 million, with $265.6 million of that in the custody of LedgerX on a restricted basis.

FTX attorneys also want to employ a “cash pooling system,” merging all the cash assets of each disparate FTX entity into one consolidated balance statement and in new bank accounts, which FTX is currently in the process of opening.

Notably, FTX attorneys wrote that they were “working, and will continue to work, closely with [existing FTX banks] to ensure that prior authorized signatories do not have access” to any prior FTX accounts that will continue to be used. Prior reporting and court filings have indicated that Sam Bankman-Fried held nearly absolute control over cash management and account access.

FTX’s bank accounts reflect the global influence of the crypto-asset empire. Institutions in Cyprus, Dubai, Japan and Germany held a wide array of global currencies. FTX subsidiaries held more than a dozen accounts at Signature Bank, an American institution that made an aggressive foray into servicing crypto customers in 2021. With the exception of one Bank of America account for Blockfolio, major American banks are unaccounted for on the list. Blockfolio was acquired by FTX in the summer of 2020.

In another petition, FTX lawyers moved to access $9.3 million for vendor payments that FTX called “critical.” No list was provided, but the FTX motion established criteria for “critical vendor” status.

In welcome news for customers, FTX attorneys applied to the court for permission to redact “certain confidential information,” including the names and “all associated identifying information” of FTX’s customers. “Public dissemination of [FTX’s] customer list could give […] competitors an unfair advantage to contact and poach their customers,” the filing read, potentially jeopardizing FTX’s ability to sell off assets or businesses.

FTX lawyers want the proceedings to continue in Delaware. Bahamas regulators, on the other hand, claim they do not recognize the authority of those Chapter 11 proceedings and want to hold a Chapter 15 process in New York.

Chapter 15 bankruptcy is the route that the defunct hedge fund Three Arrows Capital has pursued. The implosion of Three Arrows launched a spiraling crisis that has taken down Voyager, Celsius, and ultimately FTX.

The Chapter 11 process that FTX seeks would allow for restructuring or sale of the company to the highest bidder, although it isn’t clear who that might be. Rival exchange Binance initially made an offer before pulling it. That turnaround deepened a liquidity crisis at FTX and revealed a multibillion-dollar hole.

FTX’s first hearing in its bankruptcy court case is set for Tuesday in Delaware.

Friday November 18, 2022

// November 18th, 2022 // Comments Off on Friday November 18, 2022 // Daily News

Another day with the ILLEGITIMATE PRETENDIDENT in office

ENERGY

Trump’s former Treasury secretary calls G-7 Russian oil price cap ‘the most ridiculous idea I’ve ever heard’

Former U.S. Treasury Secretary Steve Mnuchin described the G-7′s plan for a price cap on Russian oil as “ridiculous.”

Speaking to CNBC’s Hadley Gamble during a panel at the Milken Institute’s Middle East and Africa Summit, Mnuchin said the idea was “not only not feasible, I think it’s the most ridiculous idea I’ve ever heard.”

He added that while there were no certainties, sanctions on Russia and Russian officials — which the U.S. and other nations have continued to roll out since Russia’s unprovoked invasion of Ukraine — could have had an impact before the war started rather than after.

“Sanctions would have had a big impact back then. I think the problem now is that there’s limited options … there’s parts of the world that are now buying Russian oil outside of U.S. sanctions,” he said.

“But look, a price cap, the market is going to set the price. So if you put sanctions on at higher prices, in a way you’re just making the situation worse, in my opinion.”

The Group of Seven nations — the U.S., Canada, France, Germany, Italy, Japan and the U.K. — along with Australia, have reportedly agreed to set a fixed price cap on Russian oil from Dec. 5, but the level has not been announced.

The plan, which has been under discussion for several months, involves a ban on the provision of certain services, such as maritime routes, insurance and financing, to buyers of Russian oil unless it is sold at or below the cap.

It is intended to limit the Kremlin’s ability to fund the war in Ukraine while also protecting consumers and households from sky-high energy prices. New sanctions are also due in early December that will end all Russian crude oil deliveries to the EU by sea, ahead of a ban on all Russian refined products in 2023.

As Europe seeks to wean itself off Russian oil and gas, Moscow has ramped up its sale of oil to countries including China and IndiaEnergy analysts say it will be vital to get those countries’ cooperation for any price cap to be effective, but it remains unclear how they will react to any final announcement.

Current U.S. Treasury Secretary Janet Yellen said last week India would still be able to buy oil from Russia at any price so long as it avoided the Western sanctions, and that this scenario would still dampen global oil prices and curb Russian oil revenues.

Mnuchin served for the full term of President Donald Trump and now works in private equity investing.

At the Milken Institute panel, he said getting Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy to the negotiating table was “long overdue” and that a best-case scenario in the near term may be a pause in fighting.

Ukraine has previously said it will only enter talks following the “restoration of Ukraine’s territorial integrity.”

A Kremlin spokesperson on Thursday told reporters it was “difficult to imagine public negotiations … One thing is for sure: the Ukrainians do not want any negotiations.”