Weekly Bitcoin net flows from centralized exchanges recorded their largest outflow, with 97,805 BTC moving off of trading platforms in the 7-day period ending on November 13.

Embattled cryptocurrency exchange FTX has said it owes almost $3.1 billion to its 50 largest creditors, and around $1.45 billion to its top 10 creditors, without naming any. The exchange filed for bankruptcy in the US earlier this month.

The entity behind the $600 million exploit of FTX has started exchanging millions of dollars worth of Ether to Ren Bitcoin (renBTC), a tokenized version of Bitcoin on other blockchains. The move comes after funds stolen from FTX were steadily converted into ETH.

Cryptocurrency investment firm Grayscale has refused to share proof of reserves after its Bitcoin and Ether products fell to new all-time lows citing security concerns.

Top stories in the Crypto Roundup today:

• Centralized Exchanges Record Largest Ever Weekly BTC Outflows
• FTX Owes Largest Creditors $3.1 Billion
• FTX Exploiter Converts ETH to Alameda-Linked renBTC
• Grayscale Refuses to Share Proof of Reserves Over Security Concerns

Centralized Exchanges Record Largest Ever Weekly BTC Outflows

Weekly Bitcoin net flows from centralized exchanges recorded their largest outflow, with 97,805 BTC moving off of trading platforms in the 7-day period ending on November 13.

The extent of the Bitcoin outflows from exchanges amplifies the damage done to investors’ trust in centralized platforms by FTX’s collapse, as more users are looking to custody their assets on-chain.

Read more on CryptoCompare’s latest Exchange Review report.

FTX Owes Largest Creditors $3.1 Billion

Embattled cryptocurrency exchange FTX has said it owes almost $3.1 billion to its 50 largest creditors, and around $1.45 billion to its top 10 creditors, without naming any. The exchange filed for bankruptcy in the US earlier this month.

The collapse of the trading platform occurred after a leaked Alameda Research balanced sheet revealed the firm, which was FTX’s sister company, relied heavily on the exchange’s FTT tokens. After leading exchange Binance announced it was divesting its FTT stake, a bank run on the exchange led to its bankruptcy.

FTX’s previous filings reveal the exchange has more than one million creditors, and a court hearing before a US bankruptcy judge has been set for Tuesday. The exchange said over the weekend it launched a review of its global assets, and was preparing for the sale or reorganization of some businesses.

Newly appointed FTX CEO John Ray has said he had never “seen such a complete failure of corporate controls” when commenting on how the exchange was run. Ray criticized a “complete absence of trustworthy financial information.”

FTX Exploiter Converts ETH to Alameda-Linked renBTC

The entity behind the $600 million exploit of FTX has started exchanging millions of dollars worth of Ether to Ren Bitcoin (renBTC), a tokenized version of Bitcoin on other blockchains. The move comes after funds stolen from FTX were steadily converted into ETH.

Alameda Research, the trading firm owned by Sam Bankman-Fried, said Ren’s development team was “joining” the firm last year, and would work on expanding Ren’s usage to several blockchains.

Over the weekend, the hacker moved over 40,000 ETH to a new wallet, before converting the funds to renBTC using the decentralized exchange aggregator 1inch. The hacker then used a blockchain bridge to transfer out thousands of renBTC.

Studies have notably linked the Ren bridge to money laundering schemes, as it may provide privacy to users.

Grayscale Refuses to Share Proof of Reserves Over Security Concerns

Cryptocurrency investment firm Grayscale has refused to share proof of reserves after its Bitcoin and Ether products fell to new all-time lows citing security concerns. The firm wrote:

“Due to security concerns, we do not make such on-chain wallet information and confirmation information publicly available through a cryptographic Proof-of-Reserve, or other advanced cryptographic accounting procedure.”

Grayscale has acknowledged its decision to keep its reserve information private would be a “disappointment” to some investors. Its refusal comes at a time in which cryptocurrency exchanges, including Kraken, BitMEX, and Binance, have started sharing information about their reserves in the wake of FTX’s collapse.

Grayscale added that “panic sparked by others is not a good enough reason to circumvent complex security arrangements that have kept our investors’ assets safe for years.”

State of the Crypto by Top Tier Exchange Volume

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