CoinMarketCap News, Nov. 28: Trouble in Paradise? Bahamas Denies FTX Bankruptcy Will Hurt Country

BlockFi has announced that it is filing for bankruptcy — becoming the latest crypto firm to fall victim to a punishing bear market. In a statement, the embattled crypto lender expressed hope that the Chapter 11 proceedings would "stabilize its business" and deliver maximum value for all clients. BlockFi's demise is unmistakably linked to the implosion of FTX, with the company confirming that work will continue to recover funds that remain tied up in the doomed exchange. The statement went on to add that the company has $256.9 million in cash on hand. BlockFi and FTX's fates were entwined when Sam Bankman-Fried — who until very recently was positioning himself as a white knight of the crypto sector — swooped in to help the stricken company.

The Bahamas' attorney general has confirmed that there is an "active and ongoing investigation" into FTX's collapse that involves criminal authorities. Ryan Pinder also defended how the country's regulators handled the exchange's implosion. He praised the Securities Commission for acting swiftly, and said no other country could have moved as quickly. Pinder added that FTX consisted of over 100 companies in dozens of jurisdictions worldwide, and said: "Any attempt to lay the entirety of this debacle at the feet of The Bahamas, because FTX is headquartered here, would be a gross oversimplification of reality." He vowed any individuals who break Bahamian law will be held accountable for their actions.

Pinder went on to urge governments around the world to exercise restraint in their public commentary surrounding the proceedings against FTX — and claimed that new CEO John Ray had made "inaccurate allegations" in Chapter 11 filings last week. Describing this as "extremely regrettable," the attorney general added: "It is possible that the prospect of multimillion-dollar legal and consultant fees is driving both their legal strategy and the intemperate statements. In any case, we urge prudence and accuracy in all future filings."

Bitcoin slid by 2% to start the week as the markets reacted to anti-lockdown protests in China. The world's biggest cryptocurrency was trading at $16,231.45 at the time of writing on Monday. Major altcoins suffered larger losses, with Ether down 3.52% and BNB down 5.87% over a 24-hour timeframe. All of this comes as demonstrations over tight COVID restrictions intensify around China, with officers using pepper spray against protesters in Shanghai. In unprecedented scenes, some were also heard calling for President Xi Jinping to resign. There has been widespread anger at his zero COVID policies, which mean quarantine periods and lockdowns are still in place — almost three years after the pandemic began.

Coinbase has announced four new hires as it doubles down on expansion in Europe. In a statement, the exchange said its commitment to the region is "stronger than ever" — despite the recent downturn in the crypto markets. Acknowledging that the past few weeks have been some of the most challenging in the history of crypto, executives wrote: "​​The prospect of furthering our mission to bring more economic freedom to each and every individual and business around the world was top of mind. This remains the case, and perhaps even more than ever." It is hoped this flurry of hires will help Coinbase launch new products, grow its customer base across Europe, and expand to new markets.