The hole in FTX’s finances generated by these undeclared loans alone is not enough to explain the company’s rapid shift from the stars to bankruptcy. In fact, most cryptocurrency exchanges in the world took place on two platforms. FTX, the best known in the US, and Binance. The latter, larger, is run by Chinese billionaire Changpeng Zhao. The two initially seemed on good terms, so much so that Zhao was among the first backers of FTX.
FTX, Alameda and other affiliates have estimated in their bankruptcy filings that they have more than 100,000 creditors and face liabilities ranging from $ 10 billion to $ 50 billion. The value of various currencies on the market, including Bitcoin, has already begun to decline.
Among those involved are Japan’s SoftBank, which plans to devalue its $ 100 million investment, a person familiar with the matter said Friday. The Bahamian authorities intervened yesterday by freezing the assets of Ftx Digital Markets, in view of possible claims by creditors. Also moving is the US Sec which is investigating the founder of the company Sam Bankman-Fried. Cyprus has revoked the license that allowed FTX to operate in the countries of the European Union.
FTX would have invested $ 10 billion, taken from client funds
Now, according to The Wall Street Journal, Alameda Research reportedly owes his crypto exchange FTX $ 10 billion after taking loans funded by deposits from FTX customers. Economist Frances Coppola said: “It shouldn’t be doing anything with those assets. They should literally be sitting there so people can use them.”
The company filed for bankruptcy in the United States yesterday: Sam Bankman-Fried resigned as CEO of the company. The New York Times reports that among experts the incident is already being compared to the tragic crash of Lehman Brothers, which triggered the 2008 crisis.
Finally, information about Alameda began to leak which undermined FTX’s perceived reliability, as well as its financial stability. Under the pretext of being troubled by the recent revelations, Zhao announced that Binance would get rid of all FTT tokens held by the company. Almost immediately, hedge funds and other companies ran to withdraw the money held in the form of FTT tokens. On Sunday alone, funds worth 5 billion would have been withdrawn.