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Cosmic Guild Secures $1.5M in Seed Funding Led by Binance Labs

Metaverse gaming platform Cosmic Guild raised a sum of $1.5 million in seed funding led by Binance Labs – the investment and innovation incubation arm of Binance.

As announced by the trading platform, the funds raised from venture capital firms will be used to expand Cosmic Guild’s portfolio of NFTs and digital game assets to offer more opportunities to Cosmic’s community of gamers.

Cosmic Guild serves as a play-to-earn community for gamers called ‘scholars’ where they connect with the gaming ecosystem’s in-game characters or NFTs. Comic Guild helps these scholars thrive within its ecosystem and gain adequate rewards for their skills with minimal out-of-pocket investment.

“Our mission is to empower individual gamers across different societies and come together as gamers, to not just play-to-earn, but to also play for fun, form meaningful friendships and have fun together in the metaverse. We hope to serve as the gateway platform for gamers and NFT-owners and as the confluence of capital and talent to meet,” said Kenneth Lee, Co-founder of Cosmic Guild, adding that, “Cosmic Guild is planning to support upcoming games launching on Binance Smart Chain and other games in the Binance ecosystem, and the team is excited to make announcements soon.“

At present, Cosmic Guild provides in-game characters for Axie Infinity, Thetan Arena, Pegaxy and several others. Over 600 scholars are being supported to play on Axie Infinity, and the ecosystem has over 1250 more gamers waiting to be included in its scholarship or funding program. As per the announcement, Cosmic Guild will be able to loan gaming NFTs to more scholars and expand their gaming portfolios with the newly secured funds.

Alameda Research, DeFiance Capital, and Play Ventures also participated in the funding round, all of whom took advantage of the growing hype in the DeFi, NFT, and metaverse world respectively.

Alameda Research co-CEO Sam Trabucco Resigns

On August 25, Sam Trabucco, co-CEO of Alameda Research, an encrypted digital asset fund, announced on Twitter that he would resign from his leadership position to focus on other personal matters.

Sam Trabucco will continue to serve as a consultant but will not continue his daily job at the company.

Caroline Ellison will be the company’s sole CEO following the exit of Sam Trabucco.

Sam Bankman-Fried, founder and CEO of cryptocurrency exchange FTX, manages assets through Alameda Research, a quantitative cryptocurrency trading firm he founded in October 2017.

Bankman-Fried hired Sam Trabucco as co-CEO last August and ceded the leadership of Alameda to Trabucco and Ellison in October.

Sam Trabucco has contributed his rich value as a trader at the company since 2019.

Trabucco said he doesn’t currently have any other crypto projects in the pipeline “but doesn’t rule out anything in the future.”

“The reason for that is pretty simple — I can’t personally continue to justify the time investment of being a central part of Alameda. Everyone works really hard here, and spending a “normal” amount of time at work is tricky — especially when you’re trying to be a leader.”

He said in a tweet that he has significantly reduced my responsibilities at Alameda over the past few months. This shift happened gradually, adding that dedicating time to Alameda is a very valuable thing. Although difficult, tiring, and exhausting, the process is very rewarding and stimulating.

FTX Denies Rumours of Merging between Alameda Research and FTX VC

Sam Bankman-Fried, founder and CEO of cryptocurrency exchange FTX, has denied reports that his two companies, FTX ventures and Alameda Research, are merging venture capital operations.

The news comes after Sam Trabucco, co-CEO of crypto asset fund Alameda Research, announced on Twitter on Aug. 25 that he would be stepping down from his leadership role.

Caroline Ellison will be the company’s sole CEO following the departure of Sam Trabucco.

Sources said the merger is part of an effort to strengthen billionaire Sam Bankman-Fried’s empire in response to a prolonged decline in cryptocurrency prices.

Sam Bankman-Fried tweeted back, “This seems like a big misinformation to me!”

He added, “FTX’s venture capital is concentrated under FTX Ventures — unlike Alameda’s venture capital, which is not.”

The venture capital arm of FTX and the venture capital business of sister company Alameda Research are not combined but operate independently as two companies.

Amy Wu, CEO of FTX Ventures, said that the FTX Cryptocurrency Exchange, FTX Ventures, and Alameda all operate entirely as separate entities from each other.

Alameda CEO Caroline Ellison explains that Alameda will focus primarily on exchanges, OTC, and decentralized finance.

She added, “We’re arm’s length and don’t get any different treatment from other market makers. The Alameda team isn’t working too much on the venture side day-to-day.”

FTX Ventures launched earlier this year and raised $2 billion in January, during which no money changed hands between FTX and Alameda.

FTX manages assets through Alameda Research, a quantitative cryptocurrency trading firm, founded by Sam Bankman-Fried in October 2017.

Was the Secret Transfer of $4 Billion to Alameda, FTX's Undoing?

The liquidity crunch facing FTX might have emanated from Sam Bankman-Fried, the crypto exchange’s CEO, secretly transferring at least $4 billion to boost Alameda, with part of the funds being customer deposits, according to Reuters.

Per the report:

“Seeking to prop up Alameda, which held almost $15 billion in assets, Bankman-Fried transferred at least $4 billion in FTX funds, secured by assets including FTT and shares in trading platform Robinhood Markets Inc. Bankman-Fried did not tell other FTX executives about the move to prop up Alameda.”

Lucas Nuzzi, the head of research & development at CoinMetrics, shared similar sentiments and stated:

“I found evidence that FTX might have provided a massive bailout for Alameda in Q2 which now came back to haunt them. 40 days ago, 173 million FTT tokens worth over 4B USD became active on-chain. A rabbit hole appeared.”

Source: LucasNuzzi

FTX’s downfall was also prompted by Bankman-Fried’s decision to save struggling crypto firms as the bear market continued to bite. The report noted:

“Some of those deals involving Bankman-Fried’s trading firm, Alameda Research, led to a series of losses that eventually became his undoing.”

Part of the losses that Alameda Research endured entailed a $500 million loan agreement with collapsed crypto lender Voyager Digital.

FTX’s future is in jeopardy after Binance halted acquisition plans, citing misappropriation of customer funds, Blockchain.News reported.

Binance disclosed that this decision was reached based on corporate due diligence and reports of alleged U.S. agency investigations and mishandled client funds.

Based on a shortfall of up to $8 billion, Bankman-Fried acknowledged that FTX needed $4 billion to remain solvent to avoid bankruptcy.

The rain started beating FTX after experiencing a “giant withdrawal surge” of $6 billion in cryptocurrencies in just 72 hours. The crypto exchange was accustomed to daily withdrawals that amounted to tens of millions of dollars.

FTX Enters Bankruptcy as Sam Bankman-Fried Steps Down as CEO

Troubled crypto exchange FTX filed for Chapter 11 bankruptcy protection in the U.S., with Sam Bankman-Fried resigning as the CEO.

The bankruptcy application included approximately 130 more affiliated companies including Alameda Research, the exchange’s trading firm, and FTX US, the company’s U.S. subsidiary.

According to an FTX statement posted on Twitter, John J. Ray III took over as the CEO of the FTX Group.

Ray pointed out:

“The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders.”

FTX also indicated that it comprised at least 100,000 creditors, with assets ranging between $10 billion and $50 billion. Liabilities were valued at a similar range.

Ray noted:

“The FTX Group has valuable assets that can only be effectively administered in an organized, joint process. I want to assure every employee, customer, creditor, contract party, stockholder, investor, governmental authority and other stakeholder that we are going to conduct this effort with diligence, thoroughness, and transparency.”

In a matter of days, FTX’s valuation nosedived from $32 billion to bankruptcy based on a liquidity crisis, given that customer withdrawals went through the roof. Reportedly, a giant withdrawal surge of $6 billion in cryptocurrencies was witnessed in just 72 hours.

Furthermore, the Binance takeover bid was halted, citing FTX’s misappropriation of customer funds, Blockchain.News reported.

“As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com,” Binance stated.

Therefore, the liquidity crunch at FTX might have emanated from Sam Bankman-Fried secretly transferring at least $4 billion to boost Alameda Research, with part of the funds being customer deposits.

Bankman-Fried May Plead Next Week Before Judge Lewis Kaplan In NY Federal Court

According to a report published by Reuters on December 28 that cited court records, former CEO of the FTX cryptocurrency exchange Sam Bankman-Fried is scheduled to appear in court on the afternoon of January 3 to enter a plea on two counts of wire fraud and six counts of conspiracy related to the failure of the FTX cryptocurrency exchange.In Manhattan, Bankman-Fried is scheduled to appear in front of District Judge Lewis Kaplan. After the initial judge on the case, Ronnie Abrams, was forced to disqualify herself because of links between FTX and the Davis Polk & Wardwell law firm, where her husband is a partner, Judge Kaplan was appointed to handle the case on December 27.In the year 2021, the company offered consulting services to FTX.Kaplan is well-known for his unpretentious demeanor and his skillful management of the proceedings that take place in the courtroom. In 1994, President Bill Clinton of the United States nominated Kaplan for the position of Supreme Court Justice.Before his arrest, Bankman-Fried expressed his disbelief on multiple occasions that he should be held criminally liable for the actions he took while serving as CEO of FTX. He claimed that the “unknowingly commingled funds” of customers of Alameda and FTX were the result of a simple accounting error that he committed.”I don’t believe any such comments to be believable,” John Ray, who succeeded Bankman-Fried as CEO of FTX, testified during a hearing held by the Financial Services Committee of the United States House of Representatives.Bankman-Fried is presently under house arrest in California with his parents as he awaits the outcome of his appeal of his $250 million bail, which includes a portion of the equity in his parents’ home.Evaluation and therapy for mental health disorders as well as substance misuse were among the other prerequisites for Bankman-release Fried’s from custody.Caroline Ellison and Gary Wang, both members of his inner circle at FTX and the related trading firm Alameda Research, have pleaded guilty to the charges against them and have agreed to cooperate with the prosecution, according to an announcement made by Damian Williams, the United States Attorney for the Southern District of New York, on December 22.Nishad Singh, a former director of engineering at Alameda Research, and Sam Trabucco, a former co-CEO of Alameda Research alongside Larry Ellison who resigned on August 24, have not been charged as of this time. Bankman-close Fried’s allies Nishad Singh and Sam Trabucco were both fired on August 24.

Alameda Research Problems Precede FTX For Sam Bankman-Fried

Alameda Research, the now-defunct cryptocurrency trading business, was dangerously close to failing in 2018, far before FTX came into the scene, according to new investigations that investigate Sam Bankman-Fried and the exchanges that he caused to fail.A study that was published in The Wall Street Journal and cited former workers stated that Alameda had significant financial losses as a result of the trading algorithm that it used. The program was developed to execute a high volume of transactions in a short amount of time in an automated fashion. Tthe company was losing money because of its incorrect predictions on how prices would fluctuate.The decline in value of the XRP token in 2018 caused Alameda to lose approximately two-thirds of its assets, and the company came within a hair’s breadth of going out of business. Reports indicate that Bankman-Fried was successful in saving the trading company by soliciting financial support from lenders and investors and assuring them of profits of up to twenty percent on their investments.Later in the month of April 2019, FTX was introduced with the intention of providing institutional investors with a secure refuge.Bankman Fried leveraged Alameda as a growth engine with the introduction of the FTX, when the trading business became the primary market maker for the exchange. This allowed Bankman Fried to continue its expansion.Some individuals who are knowledgeable with Alameda’s strategies assert that the exchange has on occasion taken the losing side of a bargain in order to attract customers.In a previous statement, Bankman Fried said that Alameda and FTX have always functioned separately. However, a new complaint filed by the United States Securities and Exchange Commission (SEC) indicates that this is not the case. During the course of the case, it was discovered that Bankman Fried had given instructions to develop a piece of code in order to acquire an unfair advantage.Regardless of the amount of collateral that Alameda put up with the exchange, the code would allow it for the company to keep a negative balance on the FTX. The Alameda has always been a ship that was doomed to sink from the very beginning.However, Bankman Fried not only saved it in 2018 with borrowed money but also utilized it afterwards to construct the now-defunct FTX crypto exchange and fuel its expansion. In 2018, Bankman Fried rescued it with borrowed cash.

FTX secretly lent Alameda Research $65B

The New York Public Service Commission (PSC) was sued by environmentalists on January 13 for allowing the takeover of a bitcoin mining factory that was located within the borders of the state. According to the complaint, the Public Service Commission broke state law when it approved the takeover.

The state Public Service Commission (PSC), which is responsible for regulating public utilities, reportedly gave its approval in September of 2022 for the conversion of the Fortistar North power plant into a cryptocurrency mining facility. This was reported by The Guardian. The Public Service Commission is the agency that is in charge of regulating public utilities.

The Canadian cryptocurrency mining company Digihost had planned to acquire the facility, which is located in Tonawanda, a city that is less than sixteen kilometers from Niagara Falls. Tonawanda is a city that can be found in the state of New York.

The complainant’s main point is that the authorization violates New York’s climate legislation that was enacted in 2019, and this is what they consider to be their strongest argument.

The Climate Leadership and Community Protection Act (CLCPA) has a number of objectives, one of which is to cut the state’s emissions by 85 percent by the year 2050. This is just one of the many objectives. This is merely one of the many objectives that the act seeks to achieve. Another one of the goals is to completely do away with emissions produced by the electricity industry by the year 2040.

Earthjustice is the organization that will be representing the Sierra Club and the Clean Air Coalition of Western New York in this case.

The organization known as Earthjustice is one that does not make a profit. In the complaint, they are making the argument that the Fortistar plant was only operated during the periods of time when there was a significant demand for power. For illustration, they are using instances in which there was severe weather as a case study.

If, on the other hand, it were to be converted into a facility for the mining of cryptocurrencies, it would be operational at all hours of the day and night, which would result in an increase in the emissions of greenhouse gases of up to 3,000 percent. Activists are of the opinion that environmental assessments need to be carried out whenever the state of New York analyzes proposed new projects.

FTX to Sell Remaining Interest in Sequoia Capital to Abu Dhabi Sovereign Wealth Fund

According to the papers filed with the court, Alameda Research, the investment division of FTX, has reached an agreement to sell the company’s remaining stake in Sequoia Capital to Al Nawwar Investments Company Ltd, which is controlled by the government of Abu Dhabi. The transaction is valued at $45 million, and its completion is anticipated by the 31st of March, provided that the Delaware bankruptcy judge John Dorsey gives his consent. FTX made the decision to enter into the agreement with Purchaser because Purchaser had a more attractive offer and was capable of carrying out the selling transaction in a shorter amount of time.

The remaining stake that FTX has in Sequoia Capital has been put up for sale as part of the company’s ongoing attempts to sell its investments and satisfy its financial obligations to its creditors. Previously, Dorsey gave his blessing for the firm to sell certain assets, such as LedgerX, Embed, FTX Japan, and FTX Europe. This allowed the company to go through with the sale.

After being sued by Alameda Research for unpaid loan repayments, Voyager Digital has decided to put aside $445 million in response to the lawsuit. Dorsey has given his blessing to the move, and as a result, the firm will have to put the money away in order to pay off its debt.

The recent developments in the bankruptcy case involving FTX bring to light the persistent difficulties that cryptocurrency exchanges must overcome and the need of preserving their financial stability. Since the cryptocurrency sector is expected to continue expanding in the next years, it is essential that businesses place a high priority on openness and accountability in order to safeguard the interests of creditors and investors. The decision by Voyager Digital to put aside $445 million and the sale of the remaining shareholding held by FTX in Sequoia Capital both reflect a commitment to financial discipline and might assist to recover trust in the sector.

FTX Continues to Move Funds Amid Ongoing Investigations

FTX, a cryptocurrency exchange, has reportedly moved around $145 million in stablecoins across various platforms, according to Lookonchain. Three wallets associated with FTX and its subsidiary, Alameda Research, transferred 69.64 million Tether (USDT) and 75.94 million USD Coin (USDC) to custodial wallets on platforms like Coinbase, Binance, and Kraken. FTX and Alameda are currently facing demands to return funds to different groups of investors as the cryptocurrency exchange continues to grapple with ongoing investigations and lawsuits.

The FTX bankruptcy case has been ongoing for some time, with the troubled exchange already recovering $5 billion in cash and liquid cryptocurrencies by January 2023, according to FTX attorney Andy Dietderich. However, the total liabilities of the exchange are said to exceed $8.8 billion.

In the latest development in the FTX bankruptcy case, Alameda Research sold its remaining interest in venture capital firm Sequoia Capital to a company owned by the government of Abu Dhabi for $45 million. Meanwhile, Alameda Research filed a lawsuit against Grayscale Investments in the Court of Chancery in Delaware seeking to “unlock $9 billion or more in value for shareholders of the Grayscale Bitcoin and Ethereum Trusts and realize over a quarter billion dollars in asset value for the FTX Debtors’ customers and creditors,” according to a statement.

As lawsuits and investigations continue to pile up against FTX, some plaintiffs requested the consolidation of lawsuits against the bankrupt exchange. However, United States District Judge Jacqueline Corley recently denied the request, stating that the defendants have not yet been allowed to respond.

FTX was founded in 2019 by Sam Bankman-Fried and Gary Wang and has quickly become one of the largest cryptocurrency exchanges by trading volume. The exchange offers a range of crypto trading products, including futures, options, and leveraged tokens. The exchange has also attracted significant investment, with firms like Paradigm, Sequoia Capital, and Thoma Bravo investing in the exchange.

However, FTX has faced a series of setbacks in recent months. In December 2021, the exchange suffered a security breach, leading to the theft of $95 million worth of cryptocurrencies. The exchange was also hit with a lawsuit in January 2022 by a group of investors claiming that FTX and its executives misled investors about the exchange’s financial health.

FTX’s troubles have continued to mount, with the exchange facing investigations by the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over allegations of market manipulation and insider trading. In February 2022, FTX was also hit with a class-action lawsuit by investors alleging that the exchange engaged in illegal market manipulation.

In response to the lawsuits and investigations, FTX has hired a team of high-profile lawyers and public relations experts to defend the exchange and its executives. However, the ongoing investigations and lawsuits continue to cast a shadow over the future of the cryptocurrency exchange.