Binance’s bid for FTX marks one of the wildest days in crypto history

Hello! It’s Dan DeFrancesco checking in from NYC.

Today we’ve got stories on what you can expect to get paid as a young attorney, billionaire Ken Griffin’s reasoning behind his move to Florida, and why your lunch spot might look different.

But first, some chaos in the crypto markets.

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This is a photo of Sam Bankman-Fried looking to the side.

This is a photo of Sam Bankman-Fried looking to the side.

Sam Bankman-Fried, founder of crypto exchange FTX.Tom Williams/Getty Images

1. The savior needed saving. He was the so-called “white knight” of crypto, cutting big checks for companies in need and serving as a backstop for an industry on the brink.

But in the end, Sam Bankman-Fried was the one who needed saving.

In a stunning reversal of fortune for an industry built on reversals of fortune, Bankman-Fried, more commonly known as SBF, announced that FTX, the crypto exchange he founded, would be acquired by rival exchange Binance.

And speaking of fortunes, SBF lost 94% of his overnight, marking the biggest one-day wealth collapse among billionaires on record.

There is a lot to unpack here, so I encourage you to read my colleague Phil Rosen’s rundown of how we got here in our sibling newsletter 10 Things Before the Opening Bell. (If you aren’t already subscribed, sign up here.)

From a deals perspective, a few things worth noting:

  • There wasn’t a banker in sight for what could arguably be one of the most important transactions in the history of the crypto industry. SBF and Binance CEO and founder Changpeng “CZ” Zhao announced the deal on Twitter without mentioning the involvement of any banks. Obviously, that could change. But it’s interesting to see a market exist where the tendency is to tweet rather than call your banker when things start getting bad.

  • The terms of transaction were sparse, but CZ did make one thing very clear: Binance can pull out of the agreement at any time. That gives Binance plenty of leverage (no pun intended) to get the best deal possible. It’ll be interesting to see where things end up.

  • What about the sponsorships? What FTX might lack in liquid assets, it is more than made up for in marketing. From a basketball arena to a baseball sponsorship to F1, the exchange was seemingly everywhere you looked.

Here’s everything to know about the lead up to one of the wildest deals in crypto history.

In other news:

Elon Musk

Elon Musk

Elon Musk.Carina Johansen/Getty Images

2. It’s not Big Law money, but it’s not bad. We mapped out what you’ll get paid starting off at plaintiffs’ firms where you work with people who were injured or deceived consumers. Here’s what you can expect to get paid at 19 different firms.

3. Banks are between a rock and a hard place with Russia. US officials quietly asked major banks to continue dealings with some Russian companies. The request came despite bank executives getting grilled by Congress for maintaining relationships in Russia.

4. Hackers made off with $2 million in ransom after obtaining confidential records at a law firm. Brown Rudnick’s cyber insurance company covered the ransom, but now the insurer is suing one of the law firm’s tech vendors that it says is liable for the fiasco.

5. Billionaire Ken Griffin totally didn’t move to Florida for the tax break. The founder and CEO told Miami major Francis Suarez it was “great schools, a great environment, and your streets are safe and clean,” that led to him relocating his family and firms’ headquarters to Miami, Fortune reports. And for no particular reason, I’ll just share these state rankings of Pre-K through 12th grade schools from US News and World Report.

6. Some tips for those in the midst of a tech meltdown. Three VCs shared some advice for startup founders trying to make heads or tails of the rocky market. Here’s what they recommend.

7. Elon Musk is outsourcing having to explain his rationale for layoffs. Twitter’s health team, which focuses on misinformation and harmful content, was told to tune into a podcast hosted by two of Musk’s advisors for insight into why the layoffs needed to happen.

8. The friend of my enemy is also a friend of mine? Databricks has joined big-data rival Snowflake in backing Matillion, a $1.5 billion cloud-data startup. Here’s why they don’t typically sit on the same cap table.

9. More cuts on Wall Street. Citigroup is making layoffs for “dozens” of jobs in its investment bank, Bloomberg reports.

10. Your favorite lunch spot just got a facelift. Panera just opened two new “to-go” restaurants in Chicago and New York, and there could be more to come. Take a peak inside so you know what to expect next time you’re grabbing some grub.

Keep updated with the latest business news throughout your day by checking out The Refresh from Insider, a dynamic audio news brief. Listen here.

Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York.

Read the original article on Business Insider

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