ResearchWhat Happened in the Cryptocurrency Ecosystem?
- According to CoinDesk, Alameda Research was unable to repay its debt and a report was shared on this subject.
- CZ, who was one of the seed investors during its establishment, announced that he sold his shares in the FTX exchange last year. He stated that they will also sell the assets (FTT) acquired after this sale.
- Downward movement started with the FUD that there will be selling pressure in FTT.
- Alameda Research, which has many cryptocurrencies and FTT in its reserves, started selling these assets to meet the withdrawal requests from FTX.
- The sale of these assets, many of which are collateral, did not provide the liquidity to meet the growing withdrawal movement in FTX.
- According to the statement by SBF, a total of $6 billion withdrawal requests were made within 3 days.
- FTX, which could meet the withdrawal demand of approximately $5 billion, could not reach enough liquidity for the withdrawal requests after a while.
- With these developments, many Solana projects which FTX supports such as Solana (SOL), Raydium (RAY) and Serum (SRM) experienced a steep decline.
- FTX CEO Sam Bankman-Fried, who stated that he met with many investors, including from Silicon Valley, but could not solve the liquidity problem, posted that he asked CZ for help and they reached a preliminary agreement with a letter of intent.
- Binance CEO CZ announced that an agreement was made with the “intent to acquire FTX '' in order to solve the liquidity crisis and protect users, as a result of FTX’s request for help.
- CZ stated that he decided not to acquire the exchange less than 48 hours after he had stated his intention to save FTX.
- Justin Sun, founder of the Tron ecosystem, announced that he started working on a solution plan for FTX after Binance announced that it gave up acquiring FTX within 48 hours of announcing their intention to save FTX.
- According to a news article by Reuters, FTX CEO Sam Bankman-Fried met with many investors including Justin Sun, founder of the Tron ecosystem, the global crypto asset platform OKX and stablecoin USDT issuer Tether during the investment fund process to raise $9.4m to save FTX.
- On November 11, FTX announced with a post on its Twitter account that they had filed for bankruptcy.
- Along with Alameda Research, the exchange's US subsidiary, FTX.US, and approximately 130 affiliates have also filed for bankruptcy.
- Sam Bankman-Fried resigned from his position as CEO in FTX. Chicago-based lawyer John J. Ray, who is known for overseeing the liquidation of Enron, was appointed to this position.
- During the week, many cryptocurrency companies including Coinbase, Circle and Tether stated that they have no affiliation with FTX.
- The New York Times described the FTX bankruptcy as the “Crypto’s Lehman Moment” in reference to the bankruptcy of Lehman Brothers which led to the 2008 global financial crisis.
- According to data by Etherscan, a large amount of assets started to be moved from FTX wallets late Friday, November 11. FTX’s community manager announced on their official Telegram channel that FTX’s website and app were hacked.
- On social media, allegations were made that Sam Bankman-Fried may have been smuggling assets.
- On social media, allegations were made that the liquidity crunch on FTX might also occur on other crypto asset platforms.
- While cryptocurrencies, especially Bitcoin, dropped sharply, there were significant losses in the shares of public crypto exchanges.
- Financial police in the Bahamas, where FTX is headquartered, started working with the local securities regulator to investigate whether there is criminal misconduct.
