The FTX Implosion (A brief overview)
FTX Token (FTT) WAS a beloved cryptocurrency for traders with just under 30,000 total addresses holding the token. Sadly, over 3 years, grew to a market cap of over $3,000,000,000 USD. The FTX Token was proving itself useful for traders all around the world.
HOWEVER.....
FTX halted withdrawals following reports that it used customer funds on risky investments that left the crypto exchange in a deep hole.FTX has NOW filed for bankruptcy, which means anyone who can establish that the company owes them money will have to get in line to request repayment.
How did it all unfold?
- On 6th November; Binance CEO announced that he was selling his holdings of the FTX token (approx 530million worth). Alameda offered to buy the Binance CEO's share at $22 each, which saw the price fall slightly from $24 to $22.
- 8th to 9th November; Binance went from announcing an intention to buy FTX (subject to due diligence) to stepping away from the deal, just hours of checking its accounts. Within the day, FTT cascaded from $22 to $2.36, as the SEC and CFTC begins its investigation of FTX and Alameda.
- 12th November; Between $1 to $2 billion in funds from FTX customer accounts have gone missing, with messages indicating that FTX has been hacked.
Currently
- Bahamian regulators freeze assets of FTX.
- Alameda is being wound down
- FTX files for bankruptcy
Unfortunately, this FTX implosion has reignited the call for more regulatory oversight in the crypto markets, to address the current systemic risks.
HOWEVER.....
FTX halted withdrawals following reports that it used customer funds on risky investments that left the crypto exchange in a deep hole.FTX has NOW filed for bankruptcy, which means anyone who can establish that the company owes them money will have to get in line to request repayment.
How did it all unfold?
- On 6th November; Binance CEO announced that he was selling his holdings of the FTX token (approx 530million worth). Alameda offered to buy the Binance CEO's share at $22 each, which saw the price fall slightly from $24 to $22.
- 8th to 9th November; Binance went from announcing an intention to buy FTX (subject to due diligence) to stepping away from the deal, just hours of checking its accounts. Within the day, FTT cascaded from $22 to $2.36, as the SEC and CFTC begins its investigation of FTX and Alameda.
- 12th November; Between $1 to $2 billion in funds from FTX customer accounts have gone missing, with messages indicating that FTX has been hacked.
Currently
- Bahamian regulators freeze assets of FTX.
- Alameda is being wound down
- FTX files for bankruptcy
Unfortunately, this FTX implosion has reignited the call for more regulatory oversight in the crypto markets, to address the current systemic risks.
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