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American and Bahamian authorities are discussing the possibility of br…

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Debra Vandegrif…
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23-03-02 03:19
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American and Bahamian authorities are discussing the possibility of bringing founder Sam Bankman-Fried to the United States for questioning, Bloomberg News reported on Tuesday, citing three people familiar with the matter.
SBF's collapsed crypto exchange FTX, which filed for bankruptcy in the United States last week, has fanned fears about the future of the crypto industry after it outlined a 'severe liquidity crisis'.
Since then regulators have opened investigations and lawmakers have called for clearer rules on how the industry operates.
Several crypto firms have also been bracing for a fallout of the FTX collapse with several counting their exposure in millions to the beleaguered exchange.

BlockFi halted withdrawals over the weekend and is considering bankruptcy. 
A spokesperson for the Manhattan U.S. Attorney's office declined to comment on the matter. FTX did not immediately respond to a Reuters request for comment.
Bankman-Fried has listed his on the market for $40 million.
FTX founder Sam Bankman-Fried may be brought back to the States from the Bahamas, where he has listed his penthouse on the market for $40m
Bankman-Fried at the Crypto Bahamas conference, an event presented by FTX and SALT, a blockchain company that is also reportedly on the verge of failure
BlockFi halted withdrawals over the weekend and is considering bankruptcy.

Pictured: BlockFi CEO Shawn Owen 
The company announced the withdrawal halt in a statement posted to Twitter over the weekend 
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FTX filed for bankruptcy protection Friday, sending tsunami-like waves through the cryptocurrency industry, which has seen a fair share of volatility and turmoil this year, including a sharp decline in price for bitcoin and other digital assets. 
For some, the events are reminiscent of the failures of Wall Street firms during the 2008 financial crisis, particularly now that supposedly healthy firms like FTX are failing.
BlockFi is now considering bankruptcy and plan to layoff staff 
The Wall Street Journal reported that BlockFi, which had halted withdrawals over the weekend following FTX´s bankruptcy, is now actively considering bankruptcy and plans to lay off its staff. 
In previous public comments, BlockFi's management made it clear that FTX's failure had pushed the company towards being out of business. FTX had provided financial aid to BlockFi this summer, including a $400 million credit facility backed by its own balance sheet.
'We are shocked and dismayed by the news regarding FTX and Alameda,' BlockFi said Saturday, referring to FTX and Bankman-Fried's hedge fund Alameda Research.

'Given the lack of clarity on the status of FTX.com, FTX US and Alameda, we are not able to operate business as usual.'
Bankman Fried, 30, was worth an estimated $16bn before the crisis but his fortune is down 94% 
Another crypto firm, crypto lending firm SALT Blockchain, also appeared to be on the verge of failure.

The company Bnk to the Future pulled out of its agreement to buy SALT, citing its exposure to FTX.
SALT's CEO said he is 'fully committed still to recover from the damages as victims.' Pictured: SALT CEO Zac Prince 
In tweets, SALT's CEO said he is 'fully committed still to recover from the damages as victims.'
In a sign of how fearful investors are that the cascading effects could do long-term damage, cryptocurrency exchange Binance proposed the creation of a rescue fund that would save otherwise healthy crypto companies from failure. 
Binance's founder and CEO Changpeng Zhao effectively laid out the possibility of a crypto-like central bank or deposit-insurance pool to be a lender of last resort to keep healthy firms from failing.
Meanwhile, FTX's users bemoaned their losses in Telegram chat groups for traders who used the FTX exchange, writing that they´d lost access to amounts ranging from thousands to millions of dollars.
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