Crypto exchanges need to prove their financial resilience

FTX founder Sam Bankman-Fried. (Image: Getty)

Thu, 17 Nov 2022

How can one of the world’s most respected cryptocurrency exchanges go from a US$32 billion (NZ$52b) valuation to bankruptcy in the space of a week?That’s what over one million investors who had assets tied up in FTX are asking themselves as they become creditors lining up in a drawn-out fight to claw back money and digital tokens held by the Bahamas-based exchange founded by MIT graduate and hedge fund trader Sam Bankman-Fried, or SBF as he is known.Where FTX really appears to have come unstuck is in creating its own cryptocurrency...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Already a Subscriber ? Sign in here.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Economy

Govt outlines strategy to deliver Defence Capability Plan

The economy and NZ industry would be beneficiaries.

Staff reporters 1:00pm

The Quiz Free

QuiznessDesk, Friday, Oct 03

Take a break and try our quiz.

The Quizmaster 9:15am

Finance

RBNZ resists capital settings-research criticisms

The RBNZ has no intention of extending the deadline for submissions beyond Oct 3.

Andy Macdonald 5:00am

RBNZ resists capital settings-research criticisms

Sponsored

Fiji’s exclusive side revealed

Private islands and 5-star luxury, closer than you think.

Tourism Fiji

Sponsored

The double edge of AI in cyber security

Artificial intelligence has the potential to become both a lifeline and a liability for modern organisations, as a revolutionary tool capable of spotting threats at lightning speed, but also the ultimate weapon in the hands of cybercriminals.

Spark