Week of Nov 18, 2022 Weekly Recap & The Week Ahead
“Every battle is won or lost before it’s ever fought” — unknown
1. FTX Says Number of Creditors in Bankruptcy Could Top 1 Million — FTX’s bankruptcy could involve “more than one million creditors,” its lawyers said in court filings late Monday, showing the vast reach the second-largest cryptocurrency exchange had before its downfall. Its sudden collapse this month has jolted the financial world. Digital currencies including bitcoin have fallen significantly in the past week, while lawmakers have stepped up their pushback against crypto-friendly legislative proposals.
2. U.S. Retail Sales Rose 1.3% in October Ahead of Holiday Season — U.S. retail sales rose sharply in October as consumers spent more on everyday staples and big-ticket items such as autos and furniture.
Retail sales—which includes spending on clothing, wine and ottomans but also meals at restaurants—increased a seasonally adjusted 1.3% in October compared with September, when spending was unchanged from the prior month, the Commerce Department reported. Consumers spent more at auto dealers, furniture stores, grocery stores and gasoline stations. Retail sales—which includes spending on clothing, wine and ottomans but also meals at restaurants—have generally risen in recent months amid higher prices and rising interest rates that can make purchases, particularly big ones, more expensive.
3. Crypto Lender BlockFi Plans Bankruptcy Filing Within Days in FTX Fallout — cryptocurrency lender BlockFi Inc. is preparing to file for bankruptcy within days, according to people with knowledge of the matter who asked not to be named because discussions are private. The crypto lender paused client withdrawals, citing uncertainties with FTX, while saying it had adequate liquidity and was exploring options with outside advisers. FTX US and BlockFi are closely tied. In July, FTX US provided the lender with a $400 million revolving credit line, which came with an option to purchase the company. And BlockFi has given loans to now-bankrupt Alameda Research, Bloomberg reported.
The sudden unraveling and subsequent bankruptcy of FTX — once seen as a savior to struggling crypto firms — is reverberating across the digital asset landscape. Bankrupt Voyager Digital Ltd., which Sam Bankman-Fried was going to rescue in a $1.4 billion deal, is now scrambling to find a replacement buyer for its assets. And Genesis is exploring options after suspending redemptions and new loan originations amid a liquidity shortfall.
The week ahead — Economic data from Econoday.com:
