FTX's Fake Insurance Fund

1. FTX's Fake Insurance Fund

In a recent courtroom revelation, FTX co-founder Gary Wang testified that the displayed balance of the crypto exchange's insurance fund was not genuine, but rather a contrived figure that didn't match the actual assets held by the exchange. He clarified that the misleading balance was generated by multiplying a random number, approximately 7,500, with the exchange's daily trade volume, which was then divided by one billion. This was the figure falsely showcased as the insurance fund balance on FTX’s website. Beyond this revelation, Wang mentioned an alarming coding practice that granted Alameda Research nearly unrestricted liquidity on the exchange. This entire testimony comes amid Wang's decision to plead guilty and cooperate with the investigation, where he made allegations of wire fraud against Sam Bankman-Fried, another FTX co-founder and a longtime friend. Bankman-Fried's trial continues, and if found guilty of the charges, including wire fraud, money laundering, and unauthorized political contributions, he could serve a maximum of 110 years in prison.

2. Yuga Labs Restructures

Yuga Labs, the company responsible for the Bored Ape Yacht Club NFTs and valued at $4 billion, has announced restructuring and consequent layoffs. CEO Daniel Alegre expressed in a team email that the startup had overextended itself and needed to realign its focus. While the exact number of layoffs remains undisclosed, the changes have affected only U.S.-based employees so far. Despite the success of some projects, such as partnerships with BAPE and Gucci, the company has faced challenges, especially in gaming execution. Yuga Labs' scaling back comes as the NFT market has shown signs of weakening, with diminished demand and falling prices for premier NFT collections like Bored Apes.

3. Buterin's New Vision for Ethereum Staking: A Two-Tiered Model

Vitalik Buterin, Ethereum’s founder, has proposed changes to the platform’s staking mechanism to address centralization concerns. The main issues he identified are related to the current staking system's limitations, particularly surrounding the selection process for node operators and inefficiencies in the Layer 1 consensus mechanism. As a solution, Buterin suggests a two-tiered staking model: a high-complexity tier with limited participants and frequent activity, and a low-complexity tier with sporadic engagement and minimal risk. This proposal aims to bolster decentralization, improve the efficiency of the platform, and promote the active participation of those who cannot afford solo staking, while also easing the transaction processing load on Ethereum's consensus layer.

1. XRP Ledger’s DeFi Upgrade: A Game-Changer for Ripple and XRP in 2023

2. Allegations of running pump and dump schemes surface against former head of OpenSea Ventures

3. FTX used Python code to fake its insurance fund figure

4. Steven Soderbergh-Backed, NFT-Funded Film Lands Global Sales Deal

5. This platform lets anyone launch and manage tokenized funds

6. Solana's Total Value Locked Hits New High for 2023

7. Ripple CTO seeks community consensus for XRPL AMM feature adoption

8. How the Three Arrows Collapse Changed Ethereum DeFi Lending

Get Access to Liquidity for your physical & digital assets.
Join the NettyWorth Lending Waitlist!

1. Chat, Manage, and Buy On One Platform.
   
   NettyWorth V4 Scheduled to launch end of October
   

2. NettyWorth met with LATAM Mexican VC Firm.