FTX Recap: Everything That Happened In The Last Week

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.

  Kris | Crypto.com @kris

  @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

  Elon Musk @elonmusk

  @philbak1 My reaction to SBF was … different

• 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• Funds on the FTX exchange cannot be withdrawn

  Autism Capital 🧩 @AutismCapital

  Reuters and The Block confirm that SBF had a backdoor that could move funds between FTX/Alameda without triggering internal audits or accounting. This allowed Sam to borrow 1:1 any amount of user deposits between the two "separate" entities. reuters.com/markets/curren…

  

• SBF has sent an apology tweet where he refers to CZ of Binance as a sparring partner

  SBF @SBF_FTX

  20) At some point I might have more to say about a particular sparring partner, so to speak. But you know, glass houses. So for now, all I'll say is: well played; you won.

• 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

  DEGEN NEWS 🗞️ @DegenerateNews

  BREAKING: @elonmusk SAYS @MarioNawfal’S CRYPTO CITIZEN JOURNALISM IS TWITTER AT ITS BEST

  

• 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