FTX Pre-Mortem Overview - SBF’s Substack: Summary In mid November, FTX International became effectively insolvent. The FTX saga, at the end of the day, is somewhere between that of Voyager and Celsius. Three things combined together to cause the implosion: a) Over the course of 2021, Alameda’s balance sheet grew to roughly $100b of Net Asset Value, $8b of net borrowing (leverage), and $7b of liquidity on hand.
Sam Bankman-Fried Responds to Fraud Charges: ‘I Didn’t Steal Funds’ - The New York Times: The disgraced founder of the crypto exchange FTX denied that he stole anyone’s money and said customers could still get their deposits back.
Takeaways from the latest inflation report - The New York Times: Digging into the numbers, prices for some goods are beginning to pull back as supply chains heal and demand for things wanes — even as gains for many services remain unusually strong.
CPI Report Live Updates: Annual Inflation Slowed to 6.5% in December - The New York Times: The Consumer Price Index rose 6.5 percent annually through last month, in line with expectations. Federal Reserve officials are closely watching prices for services like hotels and health care.
Morphe and Parent Company File for Chapter 11 Bankruptcy - Bloomberg: Forma Brands LLC, the parent company of makeup retailer Morphe LLC, filed for bankruptcy in Delaware on Thursday with plans to be taken over by lenders including Jefferies Finance LLC and Cerberus Capital Management.
SEC Charges Genesis and Gemini for the Unregistered Offer and Sale of Crypto Asset Securities through the Gemini Earn Lending Program: “We allege that Genesis and Gemini offered unregistered securities to the public, bypassing disclosure requirements designed to protect investors,” said SEC Chair Gary Gensler. “Today’s charges build on previous actions to make clear to the marketplace and the investing public that crypto lending platforms and other intermediaries need to comply with our time-tested securities laws. Doing so best protects investors. It promotes trust in markets. It’s not optional. It’s the law.”
Complaint: SEC v. Genesis Global Capital, LLC and Gemini Trust Company, LLC, SDNY Case No. 23-cv-287:
SEC Charges Crypto Companies With Offering Unregistered Securities - The New York Times: The S.E.C. charged Genesis Global Capital and Gemini Trust, which is run by Cameron and Tyler Winklevoss, as crypto companies face heightened regulatory scrutiny.
Bed Bath & Beyond Faces Debt Interest Payment Test in February - WSJ: Bed Bath & Beyond Inc. may find it hard to justify making coming interest payments of roughly $28 million as its cash dwindles.
Avaya (AVYA) Discusses Bankruptcy That Would Give Lenders Control - Bloomberg: Avaya Holdings Corp. has held talks with lenders over a plan that could hand them control of the company as part of a bankruptcy filing, according to people with knowledge of the situation.