FTX is currently going through an unprecedented crisis. Funds from users of Sam Bankman-Fried’s platform are still blocked. Follow the evolution of the FTX situation in real time.
FTX faces significant solvency concerns following a massive sale of FTT tokens by Binance. Changpeng Zhao hinted at a possible takeover of FTX in agreement with Sam Bankman-Fried, which he later canceled after having studied the management of the accounts of the customers of the platform. Follow the evolution of the situation live.
The stablecoin USDT regains its peg to the dollar
🔴 14:55 : After falling to near $0.975, Tether’s stablecoin USDT is once again pegged to the US dollar.
Alameda Research contributes well to USDT de-peg
2:30 p.m. : Alameda Research is attempting to short USDT by sending USDC over the Aave protocol to borrow USDT and then trade it on Curve Finance. They take the opportunity to arbitrate on possible de-pegs. As an immediate consequence, Curve’s tri-pool of stablecoins (DAI-USDC-USDT) is no longer correctly adjusted.
Gary Gensler calls for stronger regulation
14:10 : Unsurprisingly, Gary Gensler advocates strong regulation of the cryptocurrency ecosystem to protect investors. Indeed, imposing greater corporate transparency and strict standards could prevent cases like FTX’s.
Gary Gensler speaks out on the FTX case
14:00 : Gary Gensler, Chairman of the US Securities and Exchange Commission, speaks on CNBC about FTX.
In Response to FTX’s Lack of Transparency, Binance Implements Proof of Reserve
13:36 : To be transparent about the cryptocurrencies in its possession, the Binance platform introduces a proof of reserve. This measure comes after the criticisms made of FTX, which ensured that all was well while the platform had no more funds.
The platform claims to hold approximately 475,000 BTC ($7.8 billion), 4.8 million ETH ($5.57 billion), 17.6 billion USDT, as well as nearly 21.7 billion its own stablecoin, the BUSD. All assets held by Binance are now publicly searchable in real time.
USDT stablecoin loses dollar peg
13:05 : the USDT stablecoin is no longer correlated to the dollar and begins to fall. Tether’s stablecoin drops to $0.975, shortly after a likely open shorts by Alameda Research.
Alameda Research USDT Shorts
13:00 : Alameda Research (the parent company of FTX) is reportedly betting on a drop in the stablecoin USDT. Alameda Research traders have been very active since the fall of FTX and are ramping up actions on decentralized finance (DeFi) protocols.
Sam Bankman-Fried engages with his employees
12:45 : In a message shared on Slack, the CEO of FTX tries to reassure his employees: “We still have a theoretical possibility of raising funds, which is my highest priority next week.” In this regard, he adds: As a potential investor, we are already in discussion with Justin Sun. Regarding Binance, I have the impression that they never really intended to go through with the operation. »
FTX.US is still unaffected
11:00 : FTX.US, the American branch of FTX, still provides all of its services as normal.
Beginning of live
10:58 : Please join us to follow the latest news of the FTX case. Send us your questions by e-mail at [email protected] Where on our Twitter account with the hashtag #CryptoastFTX. We will answer them in this live.
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Circle co-founder reassures Solana investors
8:44 : Jeremy Allaire, the co-founder of Circle, assures that the stablecoin USDC circulates normally on the Solana blockchain and that it is in no way affected by the setbacks of FTX.
November 9: Binance cancels its takeover of FTX
dYdX pauses SOL trading
22:53 : The dYdX trading platform announces the discontinuation of the SOL-USD trading pair “due to extreme market volatility”.
Binance announces that it will not save FTX
22:00 : Binance has finally declared that it will not pursue its purchase of the FTX platform, citing “out of control problems” and “mismanaged client funds”. Thus, the most total fog settles on the cryptocurrency market, the latter having already been in great difficulty for a few days.
👉 Binance will not buy the FTX platform
FTX is in deficit
19:10 : Several sources evoke a loss equivalent to 6 billion dollars in the treasury of FTX.
FTX suspends withdrawals on its platform
10:59 : Cryptocurrency withdrawals since FTX are currently blocked. According to Etherscan, no more tokens have left the platform for more than 4 hours.
Solana’s SOL token in trouble
08:00 : After suffering a loss of around 20% on November 8, the SOL token of the Solana blockchain lost an additional 47% during the day.
👉 Solana (SOL) down 40% – Is it likely to continue its fall?
SBF’s fortunes heavily affected
08:00 :The billionaire and founder of FTX had a significant portion of his holdings in FTT, the native token of the exchange platform. In total, Sam Bankman-Fried saw his fortune decrease by 93% in 24 hours. The FTT then trades around 5 dollars.
👉 FTX: Sam Bankman-Fried’s fortune increases from 14.6 billion to 991 million dollars
November 8: Binance could buy FTX to save the platform
Sam Bankman-Fried allegedly solicited Wall Street
22:07 : Before signing a tentative takeover agreement with competitor Binance, the FTX platform reportedly first called for help from several Silicon Valley and Wall Street billionaires, without success. This is approximately 5 to 6 billion dollars which had to be found before the end of the day on Tuesday October 8th.
👉 Before signing a takeover agreement with its competitor Binance, FTX appealed to Wall Street
Binance talks about a possible takeover of the FTX platform
17:09 : A due diligence process has been initiated between the 2 entities. In other words, Binance will be able to access FTX accounts in order to take a closer look at the management of its accounts, and can withdraw from the agreement at any time.
👉 Binance intends to buy the FTX platform
Multicoin Capital admits to being heavily exposed to FTX
11:00 : Multicoin Capital, a major investment fund in the ecosystem, reveals through a letter that 10% of its funds held on FTX are still pending withdrawal. In addition, the company sold its entire position in FTT when the price was at 17 dollars against BTC and USD. These are also blocked.
The FTT token begins its fall
04:00 : The price of FTT shows a drop of 25% in a few minutes. Panic is setting in among investors, the tokens of the Solana ecosystem are also suffering significant losses (FTX has invested heavily in Solana). The market begins to fall as a whole.
👉 FTX’s FTT drops 25% in minutes, Binance singled out
November 7: the beginning of the difficulties for FTX
Changpeng Zhao refuses Alameda Research’s peace offer
20:35 : Caroline Elison, CEO of Alameda Research, waved a white flag. She offered Changpeng Zhao to buy Binance’s FTT tokens for $22 each, in order to limit the impact of liquidations on the market. Binance’s CEO declined the offer.
👉 Changpeng Zhao refuses Alameda Research’s peace offer
The warning signs of the fall of FTX
Hostilities began on November 2following the publication of a report by CoinDesk revealing that Alameda ResearchSam Bankman-Fried’s investment fund, could find itself in a state of insolvency in the event of a substantial fall in the FTTthe FTX platform token.
According to the document, as of June 2022, Alameda Research held $14.6 billion in assets in various forms. In this sum, the fund held about 10.4 billion dollars in the form of different cryptocurrencies, especially in FTT and SOLthe Solana ecosystem token in which FTX has invested heavily.
A few days later, Changpeng Zhao, CEO of Binance, announces a gradual release of FTT tokens held by Binance, equivalent to more than $2.1 billion as of November 6, the date of publication. The president of the exchange explicitly explained this choice following the CoinDesk revelations:
“Due to recent revelations that have been made, we have decided to liquidate any remaining TTFs on our books. We will try to do this in a way that minimizes the impact on the market. »
To reassure investors, Alameda Research CEO Caroline Elisonquickly offered Binance to buy back all of its FTT tokens for $22 each, what Changpeng Zhao refused. Panic sets in and rumors of FTX insolvency eventually give way to harsh reality: FTX is in deficit.
Thus, rumors of a possible fall of the second largest exchange in the world have flared: the price of FTT has collapsed, falling more than 80% until reaching 4 dollars.
On November 8, the unthinkable happens: during parallel statements, Changpeng Zhao and Sam Bankman-Fried announce that FTX had to resort to the help of Binance. More specifically, the 2 entities signed a non-binding offer, leaving Binance the possibility of acquiring FTX after a process of due diligence.
However, after a study of FTX accounts, Binance announces on November 9 that it will not be able to save the platform in difficultyciting “out-of-control issues” and “mismanaged client funds.”
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