About $2.2 billion of that total went to Bankman-Fried himself, according to a . Ex-FTX director of engineering received the second-highest amount 鈥� $587 million. Singh already has pleaded guilty to charges including fraud and conspiracy.

The $3.2 billion does not include more than $240 million spent to purchase luxury property in the Bahamas, and make political and charitable donations as well as 鈥渟ubstantial transfers鈥� to subsidiaries in the Bahamas and other jurisdictions.

鈥淭he FTX debtors are investigating causes of action against the recipients of these transfers and their subsequent transferees,鈥� the release said.

The story so far

FTX filed for bankruptcy protection in November after it was not able to repay customers who had deposited funds on its exchange.聽

FTX was the fourth-largest crypto exchange by volume when it failed, and Bankman-Fried was one of crypto鈥檚 biggest evangelists and financial backers. Through and his other trading firm Alameda Research, the crypto whiz kid made hundreds of bets on the industry and the future of digital finance.

Investors in FTX included big names like , , , , , , , and .

At its peak, FTX and 鈥� its U.S.-based exchange 鈥� were valued at $32 billion and $8 billion valuations, respectively.

In December, federal prosecutors charged Bankman-Fried with a slew of criminal counts after his arrest in the Bahamas 鈥� including conspiracy to commit wire fraud and securities fraud, individual charges of securities fraud and wire fraud, money laundering and conspiracy to avoid campaign finance regulations.

Bankman-Fried has denied any wrongdoing and is out on bail. His fraud trial is to start in October.

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Winc was founded in 2012 as Club W. The company, which sends customers customized wine shipments based on their tastes, raised a total of $54.2 million from venture investors including , and , according to SA国际传媒 data.聽

It raised another $22 million in its November 2021 IPO amid a spike on online alcohol sales during the pandemic. Its market capitalization has hovered around $3.6 million lately 鈥� a fraction of its most recent private valuation of $112.3 million in late 2019.

Winc filed for Chapter 11 bankruptcy protection 鈥� which allows a company to keep operating as it reorganizes 鈥� listing $50.3 million in assets and $36.8 million in liabilities. The company generated $72.1 million in revenue last year, but never turned a profit.

Its largest unsecured creditor listed in bankruptcy filings, , is Facebook parent , which is owed $724,000, presumably for online advertising.

Shares of consumer brands have been particularly hard hit this year amid stock market turmoil. Among them:

• Shares of 鈥嬧��, 鈥檚 consumer goods brand, have fallen about 84% since its May 2021 IPO.
• Oat-milk maker went public in May 2021. Its shares are trading down about 93% since then.
• , a second-hand clothing marketplace, went public in early 2021. Its shares are down about 79% since then.
• , another used-clothing marketplace, has seen its shares decline 94% since its March 2021 IPO.
• , which makes medical scrubs, went public in May 2021. Its shares are down about 76% since then.
• Shares of clothing rental service are down roughly 92% since the company鈥檚 October 2021 public market debut.

Related reading:

• These Are The Tech Companies That Went Public In 2021, A Record Year For IPOs

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This week started off like the past few have and many will in the future 鈥� with a crypto company admitting financial difficulties thanks to the spectacular collapse of 鈥檚 exchange.

Crypto lender filed for Chapter 11 bankruptcy on Monday. In July, FTX gave BlockFi a $400 million revolving credit facility that included an option to buy BlockFi for up to $240 million. Earlier this month, BlockFi suspended withdrawals on its platform after FTX鈥檚 troubles came to light.

While also blaming crypto鈥檚 down year for the company’s predicament, Mark Renzi with the 鈥� the proposed financial advisers for the company 鈥� emphasized FTX鈥檚 implosion was 鈥渁 major cause鈥� in BlockFi鈥檚 bankruptcy.

The 41-page described FTX鈥檚 fall as a 鈥渄eath spiral,鈥� and BlockFi鈥檚 inability to access its credit facility forced the company to seek bankruptcy protection.

BlockFi had already drawn $275 million on the facility, and on Nov. 8 requested an additional $125 million, the filing states. However, by that time news of FTX鈥檚 troubles had spread and FTX did not honor the request. Shortly thereafter, Bankman-Fried鈥檚 other trading firm defaulted on $680 million of collateralized loan obligations it owed to BlockFi.

A new path forward

BlockFi is now seeking to 鈥渟tabilize鈥� its business through restructuring, and Renzi鈥檚 affidavit states the company does 鈥渘ot face the myriad issues apparently facing FTX.鈥� However, it seems like a hard row to hoe as the FTX bankruptcy likely will only muddle up BlockFi鈥檚 attempts.

It鈥檚 a far descent for BlockFi, which raised $350 million at a valuation of $3 billion in March 2021 and followed that up four months later with a $500 million round at a $4.8 billion valuation.

More stories about FTX鈥檚 wave of destruction will continue to follow in the next several months. On Tuesday, some Web3 unicorn companies FTX invested in at high valuations may have trouble attracting investors willing to pay the same for FTX鈥檚 stakes.

The story really is just beginning.

Read our coverage of all the FTX-related events and more below:

• Just Like FTX, FTX Ventures Went Big 鈥� And Fast 鈥� When It Came To Investing
• After The FTX Collapse, This May Be A Good Time For VCs To Start Using 鈥楥ommon Sense鈥� Again
• FTX Collapse Will Reverberate Throughout The VC World For A Long Time
• Mergers & Money: FTX-Induced Crypto Contagion Likely Only Starting
• BlockFi Files For Bankruptcy As FTX Contagion Spreads

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Earlier today, the Jersey City, New Jersey-based company that it has filed under Chapter 11 of the U.S. Bankruptcy Code. BlockFi said it plans to put together a restructuring plan with the intent 鈥渢o stabilize its business鈥� in a manner 鈥渢hat maximizes value for all clients and other stakeholders.鈥�

As part of its restructuring efforts, BlockFi said it will focus on recovering obligations owed by counterparties, including FTX and associated entities. Due to the recent collapse of , the expectation is that recoveries will be delayed.

Founded in 2017 by finance industry pros and , BlockFi secured over $900 million in equity backing over the years. Its lead investors include , , , and . The company also raised $400 million in debt financing in June, backed by , in a deal that also offered FTX the option to buy BlockFi, reportedly for as . (At its peak, around August, 2021, BlockFi had a valuation around $4.5 billion.)

The FTX contagion

In mid-November, after FTX鈥檚 collapse, BlockFi said it was and asking clients not to submit deposits. The company said 鈥渞umors that a majority of BlockFi assets are custodied at FTX are false,鈥� but acknowledged that it did have 鈥渟ignificant exposure to FTX and associated corporate entities.鈥�

BlockFi is one of a number of well-funded players in the crypto space with significant ties to FTX. As we鈥檝e previously reported, FTX鈥檚 tentacles reached nearly everywhere in the crypto industry. It invested in nearly 50 companies through its venture arm, . It also made another 180 investments through 鈥檚 other trading firm .

FTX also had a deep reach into the crypto lending space, which had taken off in recent years as prices soared and lenders could bring in new customers with the promise of high yields on their deposits.

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The downfall of crypto hedge fund 鈥攁lso known as 3AC鈥攁nd the incredible fallout it created will be investigated by U.S. regulators.

Both the and the are looking into whether the firm violated any rules related to misleading investors about its own holdings and not registering with either agency, .

The tentacles of 3AC鈥檚 collapse reach into nearly every aspect of the current crypto winter the industry is weathering right now.

The firm filed for bankruptcy in July after the downturn in digital currencies left it unable to meet obligations. Part of its significant losses stemmed from the crash of the algorithmic stablecoin TerraUSD in May. Algorithmic stablecoins use financial engineering to maintain their 1-to-1 peg between the backup assets. In UST鈥檚 case, it is pegged to a cryptocurrency called Luna.

While the stablecoin鈥檚 fall reverberated throughout the industry, it also left 3AC unable to pay lenders despite once claiming it had a few billion dollars under management.

The bankruptcy led to some of 3AC鈥檚 creditors such as crypto lenders and also having to declare bankruptcy after not receiving the money they said they were owed.

Those bankruptcies rattled the industry, as even retail investors felt the effects by not being able to access their holdings.

Late last month, it was announced 鈥檚 crypto exchange giant would buy the assets of crypto lender . The U.S. subsidiary of FTX will pay the current estimated market price of $1.3 billion, plus an additional $111 million in anticipated incremental value, according to a by Voyager.

Meanwhile Celsius鈥� CEO decided to step down as the lender itself is being .

What will become of 3AC鈥檚 investigation is impossible to say and may not matter. The whereabouts of its founders are unknown鈥攖he court-appointed liquidator has asked a judge to subpoena them through their accounts and email addresses since other methods have failed鈥攁nd there seem to be limited assets to pay creditors.

However, it may give some closure to one of the more rocky summers the crypto sector has seen and wrap up the final chapters of a tangled plotline that helped draw the industry into our current crypto winter.

Further Web3 reading for the week:

Decentralized Exchange Uniswap Raises Big $165M Series B

FTX Buys Assets Of Bankrupt Voyager; Celsius鈥� CEO Leaves

<em>Illustration: <a href=”https://www.domguzman.com/”>Dom Guzman</a></em>

On Tuesday, it was announced 鈥檚 crypto exchange giant would buy the assets of crypto lender , which filed for bankruptcy in July for $1.4 billion.

The deal was announced in a from Voyager after won an auction for its assets. The U.S. subsidiary of FTX will pay the current estimated market price of $1.3 billion, plus an additional $111 million in anticipated incremental value, according to the post.

The deal is just the latest for Bankman-Fried, as he has used this crypto winter to go shopping for value. In July, FTX provided a $250 million line of credit to lender which includes an option to buy. In a recent , he said the exchange giant has at least $1 billion to use on acquisitions and bailouts.

In July, Voyager for bankruptcy. In that filing, the company specifically noted that crypto hedge fund 鈥攐r 3AC鈥攈ad defaulted on a loan. Singapore-based 3AC collapsed after the downturn in digital currencies left it unable to meet obligations and filed for Chapter 15 bankruptcy itself on July 1.聽

Stepping aside

A week after Voyager鈥檚 filing, lender filed for Chapter 11 protection, and on Tuesday the company announced Chief Executive Officer has decided to step down.

“I regret that my continued role as CEO has become an increasing distraction, and I am very sorry about the difficult financial circumstances members of our community are facing,” Mashinsky said in his resignation.

In July, Celsius said it was filing for bankruptcy to 鈥渟tabilize its business and consummate a comprehensive restructuring transaction,鈥� and listed .

Crypto lenders have found themselves vulnerable after offering high-yield crypto loans as cryptocurrency prices have crashed this year.

Further reading:

Crypto Lending Platform Celsius Network Files For Bankruptcy

Crypto M&A Slows As Its Own Type Of Winter Sets In

The SA国际传媒 Web3 Tracker

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