UPDATE: FTX was being run by 10 “kids” in the Bahamas living in the same house and being involved romantically with each other, including Alameda Research CEO Caroline Ellison who had been dating FTX CEO Sam Bankman-Fried. As Surreal as this sounds, an anonymous insider source has spoken to CoinDesk about it.
UPDATE 2: Crypto Lender Block-Fi has stopped withdrawals in wake of FTX Collapse. FTX has previously bailed out Block-Fi by offering a $400 million credit facility which has likely been the lifeline of the company until now.
News about FTX’s questionable financial situation along with Binance liquidating their FTT tokens in a movement to “protect their interest”, has caused the FTX’s FTT token to come crashing down over 85% as this triggered a public bank run.
Binance then announced that they intend to fully acquire FTX, and are are looking to start the due diligence process soon. However, after a single day of Due Diligence, Binance has already pulled out of the deal in yet another twisting turn for this surreal week in crypto.
In this article we’re going to deep dive into the latest developments of the FTX collapse, by analysing all the verifiable information, and related events that have come out since the initial collapse.
FTT Token Pulse Check
Unlike Terra LUNA, the FTT token didn’t continue to fall another -85% from its previous position. I hasn’t by any means recovered, but since its collapse on November 8, the token has seen a small retracement before starting to retreat back to the lower $3 levels. This suggest that the market panic temporarily subsided due given the news that Binance intended to acquire FTX, and retraced once Binance pulled out of the deal.
CZ vs SBF & the FTX Finances
In this situation, the relationship between SBF and CZ helps us understand just how bad the FTX financial situation actually is. There have been numerous public occasions where it becomes apparent that the two really don’t like each other very much.