Hodl Ninjas
  • News
  • Markets
  • Guides
  • NFTs
  • Defi
  • Exchanges
  • Subscribe
Search
bitcoin
Bitcoin (BTC) $ 27,226.29
ethereum
Ethereum (ETH) $ 1,905.60
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 307.09
usd-coin
USD Coin (USDC) $ 1.00
xrp
XRP (XRP) $ 0.52601
staked-ether
Lido Staked Ether (STETH) $ 1,904.41
cardano
Cardano (ADA) $ 0.381015
dogecoin
Dogecoin (DOGE) $ 0.072908
solana
Solana (SOL) $ 21.77
matic-network
Polygon (MATIC) $ 0.903041
tron
TRON (TRX) $ 0.081856
litecoin
Litecoin (LTC) $ 96.16
polkadot
Polkadot (DOT) $ 5.36
binance-usd
Binance USD (BUSD) $ 1.00
shiba-inu
Shiba Inu (SHIB) $ 0.000009
avalanche-2
Avalanche (AVAX) $ 14.75
dai
Dai (DAI) $ 0.999977
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 27,249.30
uniswap
Uniswap (UNI) $ 5.11
chainlink
Chainlink (LINK) $ 6.50
leo-token
LEO Token (LEO) $ 3.60
cosmos
Cosmos Hub (ATOM) $ 10.84
okb
OKB (OKB) $ 46.06
monero
Monero (XMR) $ 150.02
ethereum-classic
Ethereum Classic (ETC) $ 18.22
the-open-network
Toncoin (TON) $ 1.74
stellar
Stellar (XLM) $ 0.092358
bitcoin-cash
Bitcoin Cash (BCH) $ 116.46
internet-computer
Internet Computer (ICP) $ 4.84
filecoin
Filecoin (FIL) $ 4.85
true-usd
TrueUSD (TUSD) $ 1.00
lido-dao
Lido DAO (LDO) $ 2.32
aptos
Aptos (APT) $ 9.18
quant-network
Quant (QNT) $ 117.41
hedera-hashgraph
Hedera (HBAR) $ 0.050806
crypto-com-chain
Cronos (CRO) $ 0.061326
arbitrum
Arbitrum (ARB) $ 1.23
near
NEAR Protocol (NEAR) $ 1.65
vechain
VeChain (VET) $ 0.020088
apecoin
ApeCoin (APE) $ 3.16
the-graph
The Graph (GRT) $ 0.128764
algorand
Algorand (ALGO) $ 0.152905
the-sandbox
The Sandbox (SAND) $ 0.583033
eos
EOS (EOS) $ 0.917564
paxos-standard
Pax Dollar (USDP) $ 0.999955
render-token
Render (RNDR) $ 2.73
frax
Frax (FRAX) $ 0.999637
elrond-erd-2
MultiversX (EGLD) $ 38.85
optimism
Optimism (OP) $ 1.51
Hodl Ninjas
  • News
  • Markets
  • Guides
  • NFTs
  • Defi
  • Exchanges
  • Subscribe
Search
Hodl Ninjas
Home Markets

What Went Wrong With FTX?

The Billionaire Has No Clothes

Dennis Chen by Dennis Chen
December 7, 2022
in Markets, News
0
What Went Wrong With FTX?

It's been a rough couple of weeks for Sam Bankman-Fried.

Share on FacebookShare on Twitter

Enron, Lehman Brothers, Theranos, and now FTX will go down as one of the single largest bankruptcies in human history. All thanks in part to one genius wunderkind who took on the crypto markets by storm. A young and bright-eyed Stanford engineer managed to build a company worth more than $54 billion at its prime and, within the span of a month, bring it down in the most spectacular of ways.

Where did it all go wrong? The downfall of FTX occurred quickly and precipitously following the watchdog journalism from the cryptocurrency news site CoinDesk, which published a groundbreaking feature that led to the disturbing connections between Sam Bankman-Fried’s FTX crypto exchange and Alameda Research, the cryptocurrency trading firm also founded by Bankman-Fried.

CoinDesk unveiled Alameda’s financial balance sheet and recorded its largest asset to be roughly $5 billion worth of FTT, the token native to FTX that gives holders a discount on trading fees on its marketplace. The revelation prompted Changpeng Zhao, the CEO of rival crypto exchange Binance, to announce on Twitter that he would sell all of Binance’s holdings in FTT. From this moment onward, the public lost faith in FTX, withdrawing about $6 billion in funds from FTX to send the company—which was valued at $32 billion into a liquidity crisis.

Binance announced on Nov. 8 that it reached a nonbinding agreement to buy FTX’s non-U.S. businesses but announced on Nov. 9 that it had backed out of the bailout deal. “As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com,” read a statement from Binance.

The Wall Street Journal reported on that the Securities and Exchange Commission and Justice Department are investigating FTX. Then on Nov. 11, FTX, FTX.US, Alameda Research, and more than 100 affiliates filed for bankruptcy in Delaware. “I didn’t ever try to commit fraud on anyone. I was excited about the prospects of FTX a month ago. I saw it as a thriving, growing business.”

On December 1, Congress held its first hearing regarding the matter, where Rostin Behnam, chairman of the Commodity Futures Trading Commission (CFTC), pushed for industry oversight. “I strongly believe that we need to move quickly on a thoughtful regulatory approach to establish guardrails in these fast-growing markets of evolving risk,” Behnam said. “Failure to act will leave consumers who have made investments in digital commodities largely unprotected.”

Which leads us to where we find ourselves today, with Sam Bankman-Fried maintaining his innocence. And an ongoing criminal investigation into not only SBF but the other team members of FTX and Alameda as well.

Did they know what they were doing? Or is this the perfect storm created by a ragtag group of aspiring entrepreneurs who grew this company too fast? Either way, there is little hope for the customers who trusted FTX, only to have their funds dissipate like quicksand.

ShareTweetPin
Previous Post

WeWork Founder Raises $350 Million for New Crypto Wallet

Next Post

FTX Foundation: How One Man Gave Away Billions

Dennis Chen

Dennis Chen

Dennis Chen has spent over a decade working in corporate finance and an MBA from USC. His research focuses on how defi is disrupting traditional finance spaces. He joined the Hodl Ninjas team to help amplify awareness of great crypto projects.

Related Articles

Bittrex Officially Files for Bankruptcy
Exchanges

Bittrex Officially Files for Bankruptcy

May 18, 2023
ChatGPT Founder's WorldCoin Becomes Fastest Growing Wallet
Blockchain

ChatGPT Founder’s WorldCoin Becomes Fastest Growing Wallet

May 17, 2023
Binance Suspends Withdrawals
Exchanges

Binance Suspends Withdrawals

May 15, 2023
Founder of Twitter Jack Dorsey Donates $10 Million
Markets

Founder of Twitter Jack Dorsey Donates $10 Million

May 12, 2023
Next Post
FTX Foundation How One Man Gave Away Billions

FTX Foundation: How One Man Gave Away Billions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Trending Articles

  • High Growth NFT Categories for 2022

    What NFT Categories are Set to Go Ape in 2022?

    0 shares
    Share 0 Tweet 0
bitcoinBitcoin
$ 27,226.29
$ 27,226.29
0.17%
ethereumEthereum
$ 1,905.60
$ 1,905.60
0.03%
tetherTether
$ 1.00
$ 1.00
0%
solanaSolana
$ 21.77
$ 21.77
2.66%
cardanoCardano
$ 0.381015
$ 0.381015
1.1%
polkadotPolkadot
$ 5.36
$ 5.36
1.14%

Become a Hodl Ninja.

Stay on top of market trends, find exciting new projects, hold on for dear life.

johnsmith@example.com
© 2021 Hodl Ninjas – A BettorView Brand.
No Result
View All Result
  • News
  • Markets
  • Guides
  • NFTs
  • Defi
  • Exchanges
  • Subscribe

© 2021 Hodl Ninjas - A BettorView Brand.

Search
$ USD
  • $ USD
  • € EUR
  • ₹ INR
0
Previous 25
Next 25
#CoinPriceMarketcapVolume (24h)SupplyChange (24H)Price Graph (7D)
Previous 25
Next 25
Subscribe to Hodl Ninjas

Get the latest news in crypto and be the first to hear about exciting new projects.

Enter your email address

No thanks, I’m not interested.