![]() Owners of FTT could use the token to obtain discounts on trading FTX trading fees or for staking to earn income from their holdings. Like many other exchanges, FTX supported its own crypto token, FTT, designed to support its various projects. The Trouble Started with FTX’s Native Token, FTTįTX was built on a house of cards not dissimilar to TerraUSD. Styled as an altruistic superhero with the acronym SBF, Bankman-Fried’s Alameda stepped in as a lender of last resort to crypto firms such as Voyager Digital and Celsius, went down the drain and threatened to take huge parts of the crypto market along with them. Much like governments bailed out banks that were too big to fail during the 2008 financial crisis, Bankman-Fried extended offers of emergency liquidity to crypto companies caught up in the carnage. ![]() Until the implosion, FTX had managed to avoid the liquidity crisis that plagued crypto earlier in 2022 after a wave of contagion rocked the market in the wake of the $60 billion collapse of stablecoin TerraUSD. Alameda's incentive is just for FTX to do as well as possible by far the dominant factor is helping to make the trading experience as good as possible. In 2019, when Bankman-Fried launched FTX, he tweeted, “Alameda’s incentive is just for FTX to do as well as possible.”Īlameda is a liquidity provider on FTX but their account is just like everyone else's. The purpose of Alameda Research was to act as a liquidity provider on FTX. The MIT grad is one of crypto’s most recognizable figures, a self-made young billionaire whose crypto empire once comprised of FTX a,nd investing firm Alameda Research. On 's Website What Happened to FTX?įTX was valued at $32 billion only a few months ago. I want to ensure every employee, customer, creditor, contract party, stockholder, investor, governmental authority, and other stakeholder(s) that we are going to conduct this effort with diligence, thoroughness, and transparency,” the incoming FTX CEO said. “The FTX Group has valuable assets that can only be effectively administered in an organized, joint process. Within only a few days, the multibillion-dollar crypto exchange went from crypto leader to bankrupt. So for now, all I’ll say is: Well played you won.” 10 tweet, “At some point, I might have more to say about a particular sparring partner, so to speak. In terms of the recent maneuvers by Binance, Bankman-Fried said in a Nov. ![]() 9 tweet, only a day after offering FTX a bail-out package. agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com,” said Binance CEO Changpeng “CZ” Zhao in a Nov. “As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged U.S. But just as quickly as Binance offered its rescue package in the form of an acquisition, the company backed out. In a rapid series of events that unfolded largely on Twitter, FTX attempted to sell a large part of its operating business to rival Binance after a wave of withdrawals threatened to take FTX down. Ray III., the new FTX CEO.Īt the heart of the issue is FTX’s native token, FTT, which was eviscerated in a huge sell-off. “The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders,” said John J. In the bankruptcy proceedings of FTX, its sister firm Alameda Research and 130 affiliated companies filed for bankruptcy under the banner of FTX Group. The embroiled exchange filed for bankruptcy on Nov. and face criminal charges stemming from FTX’s implosion last month. It’s expected that Bankman-Fried will be extradited to the U.S. 13, stating, “From at least May 2019 through November 2022, Bankman-Fried, engaged in a scheme to defraud equity investors in FTX Trading Ltd, the crypto asset trading platform of which he was CEO and co-founder, at the same time that he was also defrauding the platform’s customers.” The Securities and Exchange Commission (SEC) also filed a complaint against Bankman-Fried on Dec. “The Bahamas and the United States have a shared interest in holding accountable all individuals associated with FTX who may have betrayed the public trust and broken the law,” Bahamian Prime Minister Philip Davis said in a statement.īankman-Fried likely faces charges of wire fraud, securities fraud, securities fraud conspiracy and money laundering. Attorney for the Southern District of New York (SDNY) shared its indictment with the Bahamian government. 12 by Bahamas law enforcement after the U.S. SBF, as he’s commonly referred to in the crypto world, was arrested on Dec. ![]() The latest seismic disruption brought down FTX, which used to be the fourth largest crypto exchange in the world, and its ex-CEO Sam Bankman-Fried. Crypto investors have endured more than their fair share of sudden market meltdowns this year thanks to shocking revelations about poorly managed crypto projects.
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