What just happened
Sam Bankman-Fried went from a net worth of $16 billion to bankruptcy in 4 days
The CEO of Crypto dot com sent $500 million of ETH 80% of their treasury to a competitor by accident.
@ledgerstatus @jconorgrogan It was supposed to be a move to a new cold storage address, but was sent to a whitelisted external exchange address. We worked with Gate team and the funds were subsequently returned to our cold storage. New process and features were implemented to prevent this from reoccurring.BlockFi stops withdraws
Just a few months ago Sam spent billions bailing out insolvent crypto entities, offered to buy Coinbase and wrote to Elon Musk to help fund buying Twitter. Musk has commented that he didn’t believe in Sam
FTX went from one of the largest crypto exchanges in the world to insolvency and has now declared bankruptcy
Alameda Research (The FTX trading shop) has gone from multi-billion dollar hedge fund to insolvent. It turns out the CEO of was an ex girlfriend of SBF
ETH has gone from $1600 to $1200
FTT (FTX token) has gone from $23 per coin to $2 per coin
Funds on the FTX exchange cannot be withdrawn
SBF has sent an apology tweet where he refers to CZ of Binance as a sparring partner
FTX Ventures, the venture arm of FTX, has removed their website
CZ, the owner of Binance, was an early investor in FTX. He began selling his shares of FTT and announced they may buy FTX
After looking at the books of FTX, CZ decided not to buy FTX
It appears FTX may have been using customer deposits to trade with, without customer consent
Cryptocurrency valuations have dropped by over $150 billion, from $1 trillion to $842 billion
Twitter has turned into a live stream news update of FTX
It is hard to imagine what will happen next
Nothing here is meant as financial, or legal advice, these are all only my understandings of what may be happening and are not meant as a pure statement of fact but rather what I believe to be accurate.
Cheers
Josh Bobrowsky
Unexpected things can happen anytime, can't blame anyone
This really helped me understand the whole situation right now! Short but very detailed love this! waiting for more of like this.