{"id":1736594,"date":"2022-11-13T06:00:07","date_gmt":"2022-11-13T11:00:07","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1736594"},"modified":"2022-11-13T06:03:34","modified_gmt":"2022-11-13T11:03:34","slug":"pensioners-investment-firms-sovereign-funds-lose-big-amid-ftx-bankruptcy","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/pensioners-investment-firms-sovereign-funds-lose-big-amid-ftx-bankruptcy\/","title":{"rendered":"Pensioners, Investment Firms, Sovereign Funds Lose Big Amid FTX Bankruptcy"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fpensioners-investment-firms-sovereign-funds-lose-big-amid-ftx-bankruptcy%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1736594&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><a href=\"https:\/\/www.theepochtimes.com\/t-ftx\">FTX<\/a>, the Bahamian cryptocurrency exchange founded by Sam Bankman-Fried, filed for Chapter 11 <a href=\"https:\/\/www.theepochtimes.com\/t-bankruptcy\">bankruptcy<\/a> protection in the United States on Friday, along with over 130 affiliate companies.<\/p>\n<p>This comes after the exchange halted user withdrawals due to insufficient liquidity, an issue Bankman-Fried <a href=\"https:\/\/mobile.twitter.com\/SBF_FTX\/status\/1590709195892195329\">assured<\/a> would not affect their U.S. platform. FTX US is, however, among the companies <a href=\"https:\/\/mobile.twitter.com\/_Ryne_Miller\/status\/1591071941951381504?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1591071941951381504%7Ctwgr%5Ecebec22ed4f799d4961cbba3891409ca84fcc723%7Ctwcon%5Es1_&#038;ref_url=https%3A%2F%2Fwww.zerohedge.com%2Fmarkets%2Fftx-files-bankruptcy-sam-bankman-fried-resigns-ceo\">filing<\/a> for Chapter 11.<\/p>\n<p>The Bahamas Securities Commission has <a href=\"https:\/\/fortune.com\/2022\/11\/10\/ftx-assets-frozen-bahamas-cryptp\/\">frozen<\/a> FTX\u2019s assets and is conducting an investigation into whether the firm\u2019s actions were unlawful. U.S. authorities are also investigating Bankman-Fried to determine if he violated securities rules, <a href=\"https:\/\/fortune.com\/2022\/11\/10\/ftx-assets-frozen-bahamas-cryptp\/\">according<\/a> to Bloomberg.<\/p>\n<p>A great deal of wealth has been destroyed for FTX investors, users of the online exchange, and Bankman-Fried himself as a result of this fiasco.<\/p>\n<p>Once hailed as the \u201cnew John Pierpont Morgan\u201d and amassing a net worth of $26.5 billion, Bankman-Fried has, in a matter of days, fallen from grace and officially lost billionaire status, <a href=\"https:\/\/www.forbes.com\/sites\/laurasmythe\/2022\/11\/11\/daily-dozen--forbes-bankman-frieds-apology-a-keurig-dr-pepper-mystery-twitter-leaders-walk\/?sh=4312b49f7d65\">according<\/a> to Forbes.<\/p>\n<p>FTX users are potentially <a href=\"https:\/\/fortune.com\/crypto\/2022\/11\/10\/with-ftx-on-the-verge-of-collapse-customers-are-wondering-what-happens-to-their-crypto-heres-what-to-do-if-you-have-an-account-there\/\">facing<\/a> $8 billion in cumulative losses as the company scrambles to make up for the shortfall. Many are sounding the alarm on the billions that FTX lent to sister company Alameda Research, with The Wall Street Journal <a href=\"https:\/\/www.wsj.com\/articles\/ftx-tapped-into-customer-accounts-to-fund-risky-bets-setting-up-its-downfall-11668093732\">accusing<\/a> FTX of using \u201ccustomer accounts to fund risky bets.\u201d<\/p>\n<p>\u201cIf these are indeed the facts then it does appear to be possibly the largest financial fraud ever within the brokerage space\u2014across all asset classes,\u201d Gene A. Grant II, founder and CEO of LevelField Financial,\u00a0<a href=\"https:\/\/fortune.com\/crypto\/2022\/11\/10\/with-ftx-on-the-verge-of-collapse-customers-are-wondering-what-happens-to-their-crypto-heres-what-to-do-if-you-have-an-account-there\/\">told Fortune<\/a>.<\/p>\n<p>Investors in the company are likely to lose their entire investment as a result of the bankruptcy. \u201cBased on our current understanding, we are marking our investment down to $0,\u201d venture capital firm Sequoia Capital <a href=\"https:\/\/twitter.com\/sequoia\/status\/1590522718650499073\">stated on Twitter<\/a>\u00a0on Wednesday in reference to its $150 million loss.<\/p>\n<p>Other notable investors <a href=\"https:\/\/www.forbes.com\/sites\/chasewithorn\/2022\/11\/10\/exclusive-these-investors-stand-to-lose-the-most-from-ftxs-implosion\/?sh=198ff12b2670\">include<\/a> the Singaporean government-owned firm Temasek and the Ontario Teachers\u2019 Pension Plan (OTPP), which invested $205 million and $95 million, respectively. OTPP manages the retirements of 330,000 teachers and boasts a \u201cproven track record of delivering stable returns\u201d on its website.<\/p>\n<p>The FTX problem has rocked digital asset markets broadly.<\/p>\n<figure id=\"attachment_4858628\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/CFA-Institute-study.png\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy size-full wp-image-4858628\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/CFA-Institute-study.png\" alt=\"Epoch Times Photo\" width=\"722\" height=\"582\" \/><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-4858628\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/CFA-Institute-study.png\" alt=\"Epoch Times Photo\" width=\"722\" height=\"582\" \/><\/noscript><\/figcaption><\/a> (Courtesy of 2022 CFA Institute Investor Trust Study)<\/figure>\n<p>According to a <a href=\"https:\/\/trust.cfainstitute.org\/wp-content\/uploads\/2022\/04\/Enhancing-Investors-Trust-Report_2022_Online.pdf\">survey<\/a> by the CFA Institute, government pension funds seeking a high yield have been diving head-first into the digital asset space, with 94 percent of the funds surveyed claiming to own crypto-related assets.<\/p>\n<p>Bitcoin dropped below the $16,000 level on Wednesday, prices not seen since November 2020. Ethereum and Dogecoin are down 20 percent and 27 percent on the week, respectively.<\/p>\n<p>Crypto investors are in disarray while critics take long-awaited victory laps.<\/p>\n<p>\u201cI don\u2019t want to call it fraud at this moment, because that\u2019s a legal term and none of us know,\u201d\u00a0Anthony Scaramucci, founder of digital asset-focused SkyBridge Capital and personal friend of Bankman-Fried,\u00a0<a href=\"https:\/\/twitter.com\/SquawkCNBC\/status\/1591048980284461056?s=20&#038;t=FGIY85LMrpvG8HgZBmHwbg\">told CNBC<\/a>. \u201cWe have to leave it up to the regulars. But I\u2019m distressed about it.\u201d<\/p>\n<p>\u201cA year ago Bitcoin hit $69,000,\u201d\u00a0Peter Schiff, chief economist at Euro Pacific Capital, <a href=\"https:\/\/twitter.com\/PeterSchiff\/status\/1591100124780023808?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Etweet\">posted on Twitter<\/a>\u00a0Friday. \u201cThe FTX bankruptcy proves the entire rally was a fraud. It will never be repeated. Bitcoin mania is over.\u201d<\/p>\n<p>As the company tries to salvage the situation, Bankman-Fried has been replaced as CEO by John Ray\u2014a seasoned litigator known for cleaning up the Enron scandal in 2001. \u201cThe FTX Group has valuable assets that can only be effectively administered in an organized, joint process,\u201d <a href=\"https:\/\/decrypt.co\/114205\/ftx-files-chapter-11-bankruptcy-sbf-steps-down-as-ceo\">shared<\/a> the new FTX CEO.<\/p>\n<p>Some market commentators say FTX\u2019s bankruptcy could be <a href=\"https:\/\/twitter.com\/SullyCNBC\/status\/1591132398497845248\">worse than<\/a> Enron\u2019s.<\/p>\n<p>The FTX crisis comes on the heels of a survey by Banklesstimes.com showing that one-third of Americans <a href=\"https:\/\/www.banklesstimes.com\/news\/2022\/11\/03\/13-of-the-american-population-still-think-cryptocurrencies-are-ponzi-schemes\/\">believe<\/a> cryptocurrencies are scams or Ponzi schemes.<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-liam-cosgrove\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/LiamCosgrove_WEB.jpg\" alt=\"Liam Cosgrove\" \/><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Liam Cosgrove works as a freelance journalist covering business, markets, and finance. He received his bachelor&#8217;s degree in mathematics from the University of California, Santa Barbara.<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>FTX, the Bahamian cryptocurrency exchange founded by Sam Bankman-Fried, filed for Chapter 11 bankruptcy protection in the United States on Friday, along with over 130 affiliate companies.This comes after the<\/p>\n","protected":false},"author":1,"featured_media":1736597,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1736594","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1736594","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1736594"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1736594\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1736597"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1736594"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1736594"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1736594"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}