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The collapse of the FTX empire

Throughout the week Bitcoin, Ethereum and many other cryptocurrencies have been actively and dramatically falling – and the disastrous situation around one of the largest cryptocurrency exchanges, FTX, is the reason.

On 6 November, Binance CEO Changpeng Zhao announced on Twitter that he had decided to sell all remaining FTT tokens. He promised to minimise the impact of the transaction on the market and expressed his willingness to complete it within a few months.

Whereupon Caroline Allison, CEO of Alameda Research, stated that “if you want to minimise the market impact on your FTT sales, Alameda will happily buy it all from you today at $22!”

The market has started to take a storm. Bitcoin fell below $20,000 and investors rushed to get rid of assets linked to FTX and Alameda Research.

Hours later, the CEO of Binance announced that FTX was facing a liquidity crisis and turned to him for help. The strategic agreement also suggested a possible takeover of FTX. However, Binance declined to buy FTX, noting significant discrepancies in the company’s balance sheet.

The media began to massively report on the “hole” in FTX’s balance sheet. Branches of the company began to close under pressure from local regulators. Layoffs began at the head office, with employees saying they had lost their funds.

On 11 November FTX Group, which includes 130 legal entities, filed for bankruptcy and the head of the exchange stepped down as CEO. The very next day, unidentified individuals withdrew over $400m in digital assets from FTX wallets. According to some estimates, the total amount of funds displaced has already reached $600m.

All we have to do is watch and wait to see how the situation around one of the largest cryptocurrency exchanges, FTX, turns out.

Read more at the link: https://forklog.com/news/itogi-nedeli-ftx-podala-na-bankrotstvo-a-glava-binance-predupredil-o-kaskadnom-krizise

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