In case you missed out: top crypto and Web3 news for November 16 in brief

News of the FTX collapse case is not going anywhere. But now it is interesting to see how the companies in the same boat as their unstable companions behave. What a Judas day! Everyone is disassociating themselves from their troubled colleagues and competitors.

SBF’s Ponzi scheme

November 16, it became known that American crypto investors have filed a class action lawsuit against the FTX founder Sam Bankman-Fried. As well as several celebrities who promoted his exchange, including comedian Larry David. The documents say FTX’s revenue accounts were unregistered securities that were illegally sold in the United States.

The lawsuit alleges that when the cryptocurrency exchange faltered due to liquidity problems, investors suffered $11 billion in damages.

Other defendants in the suit included National Football League quarterback Tom Brady, tennis star Naomi Osaka, and professional basketball team Golden State Warriors

Genesis and Gemini suffer, Tether disavows

Genesis’ credit division, Genesis Global Capital, is suspending payments and new loans. The reason was the default of 3AC, to which Genesis lent up to $2.36 billion.

Also, one of the largest exchanges in the U.S., Gemini, has been unable to meet customer requests for EARN redemptions for five business days now because Genesis partner Global Capital, LLC has suspended withdrawals. 

In the meantime, Tether has stated that it has absolutely nothing to do with Genesis or Gemini Earn.  

Nexo makes excuses, too

Nexo responded to rumors of insolvency that surfaced on Nov. 16 after its website stopped displaying real-time audits of its assets and liabilities. This was attributed to a malfunction, which will soon be fixed.

Also, the crypto platform stated it has $0 exposure to Genesis, Gemini, Luno, and BlockFi.

“I’ve got the power”

Wu Blockchain has obtained an internal letter to Huobi employees that talk about changing the company’s organization and creating 17 departments that will report to Justin Sun and other committees. The new executives include former TRON employees (where Sun himself came from).

Departments include spot, contract, fiat, assets, DEX, NFT, liquidity, PR, finance, security, risk control, audit, international, procurement, HR, GR, etc.