The FTX case continues: Sam Bankman-Fried apologized, the crash “wasn’t expected”

The last few weeks have been rocking the cryptocurrency world. The failure of the company is primarily to blame for this FTX, which was one of the largest cryptocurrency platforms in the world. Although some have pointed out the inconsistencies before, many have taken the approach of “preferring not to see” the hints (as shown by the recent videos of the YouTuber With Coffeez including half a year old, where the CEO of FTX himself basically admitted to being about Ponzi scheme). In the end, it didn’t break until the beginning of November. Alameda Research (a subsidiary of FTX) was first shown to be financially unstable, followed by the fact that on November 6 the company Binance based on these facts, it decided to sell its FTX-linked tokens (FTT – FTX Token). Rather, it was about using the opportunity to destroy his old rival.
sam Bankman-Fried: autor: Cointelegraph, CC BYover YouTube

The value of the tokens logically went down, bringing its rival Binance to its knees, and on November 8, FTX suspended withdrawals. Binance decided to “buy the company to protect customers” only to decide not to do so a day later due to numerous irregularities in FTX’s accounting. This, of course, added fuel to the fire, Binance dealt another blow to rival FTX, and FTX now lacked about 8 billion USD to meet its obligations. It filed for Chapter 11 bankruptcy on November 11.

This is just the beginning of the whole case. But what has happened since then? We already know that FTX was also hacked (470 million USD was lost). The funds obtained in the FTX hack were subsequently converted to wBTC and renBTC, thus the hacker managed to transfer at least 15 million USD. It was also revealed that Sam Bankman-Fried (now familiarly referred to as SBF), CEO of FTX, used 300 million to buy back FTX shares from Binance in a 2021 investment round that raised $420 million. A similar amount from FTX funds was also supposed to go towards the purchase of various recreational properties for the management of the company.

SBF apologized for the whole thing two days ago and, according to him, he never wanted this to happen (which we may or may not believe him). He claimed that he never fully realized the overall impact of the amount of financial stocks held and the level of risk represented by the significant fall of cryptocurrencies and the “run on the bank” (which was caused by its behavior primarily by the competitor Binance and, based on this, by FTX users). He also added that he believes FTX still has value and was reportedly able to raise billions of USD just eight minutes after filing for bankruptcy. He believes that there is still interest among investors in FTX, which could help the company, but that is no longer in his power and his choice. The question is how much of it is just his belief and how much other investors will really be found who would like to pump even more money into the project, especially when it is known how SBF is wasting it.


Source: Svět hardware by www.svethardware.cz.

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