The Rise and Fall of FTX Explained

The Rise and Fall of FTX Explained The Rise and Fall of FTX Explained
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Don Brady
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The first we heard of FTX’s liquidity issues was on November 6th, when the founder of the exchange, Sam Bankman Fried tweeted that they didn’t exist.

Filthy, fuddy rumors being spread by their enemies! Nothing to worry about.

Less than forty-eight hours later, the exchange had done an emergency “deal” with rival exchange Binance that aimed to keep it solvent while making it a wholly owned subsidiary of Binance for terms that they were going to work out later. Couldn’t have been much, right?

But if we roll back a few days, for people who were paying attention, on November 2nd, Coindesk was reporting that it had obtained a leaked balance sheet from FTX’s sister hedge fund and primary shareholder Alameda Capital, and that the balance sheet was held together with FTT, the in-house coin that FTX uses to make its exchange run.

That Coindesk report turned out to be the FUD domino that started this slide, but it really got going when the Dirty Bubble substack posted about it November 4th.

Supporting links: https://thedeepdive.ca/voyager-digital-returns-to-bidding-process-after-ftx-bankruptcy/ https://thedeepdive.ca/ftx-gets-hacked-sees-crypto-holdings-disappear-all-funds-seem-to-be-gone-ftx-apps-are-malware/ https://thedeepdive.ca/the-entire-team-behind-ftxs-future-fund-resigns/ https://dirtybubblemedia.substack.com/p/is-alameda-research-insolvent https://www.reuters.com/technology/exclusive-behind-ftxs-fall-battling-billionaires-failed-bid-save-crypto-2022-11-10/ https://www.wsj.com/articles/binance-is-said-to-be-likely-to-walk-away-from-deal-to-buy-ftx-11668020963 https://www.bloomberg.com/news/articles/2022-11-08/crypto-exchange-binance-to-buy-rival-ftx-com-terms-undisclosed

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