FTX Bankruptcy; the firm disaster gets worsens
After it was confirmed that the liquidity crisis at FTX led to bankruptcy, Sam Bankman-Frieds secretly transferred $4 billion in client deposits to Alameda Research, according to Reuters.
“Seeking to prop up Alameda, which held almost $15 billion in assets, Bankman-Fried transferred at least $4 billion in FTX funds, secured by assets including FTT and shares in trading platform Robinhood Markets Inc. Bankman-Fried did not tell other FTX executives about the move to prop up Alameda.”
This really showed that the shutdown of FTX was prompted by CEO Bankman-Frieds to save the crypto companies Alameda during a bear market where the company is going through many losses.
It is a move that shows the project is nothing but a scam and shit coin, FTX just used a pricing strategy to attract investors and later dump the project after they get their money. There is a lot to learn from this crisis, one of them is trust, as it is now becoming difficult to trust any project. We don't know who is who and what each company is up to. Luna goes bankrupt, Voyager shutdown, Celsius and now FTX, who knows what else is going to happen in cryptosphere and what project is next target. Well, we have no clue about this and what will it take to safe by that time.
Yeah, after it has been confirmed that FTX secretly transferred $4 billion to his sister Alameda, despite the move, it doesn't help Alameda's situation. The wrapped token issued by the cryptocurrency exchange is now down more than 60%, the wrapped Bitcoin on the sollet has dropped from the current Bitcoin price to $16,000, and the wrapped ETH is also down about 10% in the past 24 hours to $1,211. However, a notice has been posted on coingecko about their bankruptcy and soETH and soBTC are no longer redeemable and this will likely go to 0.
The news of FTX's collapse gets worse and reverberates through the air due to their mismanagement. Several trade associations that cooperate with them are beginning to withdraw their partnership because the operation of the European license has been suspended.
Mercedes Formula 1 (F1) team Toto Wolff, who began his sponsorship earlier this year, also takes to the air to announce that there will be no more FTX logos on Mercedes Formula 1, stated;
“As a first step, we have suspended our partnership agreement with FTX. This means the company will no longer appear on our race car and other branded assets from this weekend. We will continue to monitor the situation closely as it evolves.”
I don't think there is anything left for FTX to survive this crisis even the way Bankman-Frieds stepdown from his position, he has already set us back a year in cryptosphere and there is probability we are going to deal with this for next 8-9 month.
PS: Knowing the cryptocurrency firm that you invest with is very much important right now
Thank you for your attention 💞💖
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