F|T: The FinTech Times – BlockFi bankruptcy, Buckzy takes the smart money, the Kraken is re-leashed

Buckzy headshot.
Plus: FTX collapse hits Gadze Finance.

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Cross-border payments startup Buckzy takes the smart money in downscaled $19.5 million CAD Series A (BETAKIT)

Buckzy founder and CEO Abdul Naushad told BetaKit in an interview that this capital will extend the startup’s runway by 12 months and help it reach cash flow breakeven by this time next year.

Kraken cuts 30% of staff to ‘weather crypto winter’ (THE BLOCK)

“We’re reducing our global workforce by approximately 1,100 people, or 30 percent, in order to adapt to current market conditions,” co-founder and CEO Jesse Powell said in a blog post. Powell previously announced he would be stepping step down in September.

Ha Nguyen named McRock Capital’s third partner as firm looks to raise $200 million fund (BETAKIT)

Nguyen originally joined McRock in 2016 as an associate, serving as McRock’s Western Canada lead and vice president for the last four years.

A bombproof courtroom and a CEO in the dock: what to expect from the Wirecard trial (FINANCIAL TIMES)

Wirecard, once worth €24bn and hailed as one of Europe’s most successful tech start-ups, collapsed in June 2020 after disclosing that half of its €2bn in annual revenue and €1.9bn in corporate cash were a sham. The implosion sent shockwaves through Germany’s financial and political establishment.

What Coconut Software CFO Matt Petrow learned while raising a Series B (BETAKIT)

Matt Petrow, CFO of Coconut Software, said it’s about more than simply knowing your numbers and taking the best term sheet available.

Canadian crypto platforms pushed for crackdown on offshore competitors before FTX collapse (THE LOGIC)

In a meeting with regulators weeks before FTX collapsed, Canadian crypto platforms pushed for harsher enforcement against large foreign platforms that continue to operate in the country without registration.

Montréal Startup Community Awards 2022 honours #MTLtech’s best and brightest (BETAKIT)

Over 300 peer nominations were received with a selection committee shortlisting five to 10 finalists for each category. The awards were handed out at the Gala de la Communauté Startup on December 1.

FTX collapse hits Gadze Finance, crypto fund led by Top Hat founder Mike Silagadze (THE GLOBE AND MAIL)

The Toronto entrepreneur, best known for building online textbook company Top Hat, last year founded Grand Cayman-based Gadze Finance to invest in the crypto space. As FTX’s high-profile meltdown started this month, Gadze had US$5.4-million of its roughly US$40-million in assets held in custody within the exchange, where it was short-selling cryptocurrencies as part of a hedging strategy.

Foresight 50 list names Canada’s “most investable” cleantech firms (BETAKIT)

“Last year’s Foresight 50 companies went on to collectively raise $593 million to amplify their cleantech solutions,” said Foresight Canada CEO Jeanette Jackson.

Crypto lender BlockFi files for bankruptcy as FTX fallout spreads (THE NEW YORK TIMES)

On Monday, BlockFi, which was founded in 2017, filed for Chapter 11 protection in New Jersey. Its implosion is the latest example of an industry built on shaky foundations, with companies so intertwined that a single wobble can unleash financial chaos.

How to keep yourself safe from cyber threats (BETAKIT)

In a BetaKit Live, Leigh Tynan, the Director of TELUS Online Security; Jeff Bonvie from the RCMP’s Cybercrime Coordination Centre; and Matthew Moniz, entrepreneur and Content Creator of Moniz Media, shared their insights on the current state of cybercrime and the secret to staying safer online.

Mastercard, block back group to lobby for Canada finance reforms (BNN BLOOMBERG)

More than 40 companies have joined forces to launch Fintechs Canada, a lobby group that will push for so-called open-banking rules and other regulations they say would enable more innovation in a financial sector that’s dominated by a handful of domestic banks.

FTX fallout could set back investment in Canadian crypto companies for years, experts say (BETAKIT)

“This has likely set crypto back at least three years,” said Koleya Karringten, executive director of the Canadian Blockchain Consortium. “Institutional investors are going to have a very difficult time being willing to explore the industry. They won’t view this as an isolated incident…Everyone [will get] painted with the same brush.”

Meanwhile, Balance CEO George Bordianu said there should be “consequences” for investors who participated in FTX rounds.

Prairie tech celebrates its own with Calgary Launch Party, Start Alberta Awards, Startup TNT Summit (BETAKIT)

This year’s Launch Party highlighted 10 Calgary startups, with three taking home prizes for the People’s Choice Award, Alumni’s Choice Award, and the Alex Raczenko Pitch Award, respectively.

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Michael Edgar

Michael Edgar

Michael is a multimedia journalist working out of the U.K. and a staff writer for BetaKit.

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