FTX News Recap

Translated by elcreto

FTX News Recap

Nov 22:

• Fears over contagion from the FTX crash sends Coinbase shares tumbling to a historic low, down 8.9%. (Link)

• FTX discloses that it owes $3.1 billion to its top 50 creditors. (Link)

Nov 23:

• DCG founder Barry Silbert issues a letter to investors, saying that the company is working to resolve issues surrounding Genesis. (Link)

The Fall of FTX: A Timeline of Major Events

Nov 2:

• Coindesk reveals a balance sheet of Alameda Research, the asset side of which was disproportionately composed of FTT. (Link)

Nov 6:

• Binance CEO Changpeng Zhao (commonly known as CZ) tweets that the exchange would liquidate $500M worth of FTT tokens. (Link)

Nov 7:

• Alameda Research offers to buy FTT at $22 each in an OTC deal. (Link)

• CZ declines Alameda’s offer, implying that he would sell off the FTT tokens. (Link)

• FTT takes a nosedive, falling below $223.

Nov 8:

• Last withdrawals are made from FTX’s Ethereum, Solana, and Tron addresses. (Link)

• FTX announces an agreement on a strategic transaction with Binance. (Link)

• Binance announces its tentative agreement to acquire FTX after it signed a non-binding LOI (Letter of Intent). (Link)

Nov 9:

• Binance pulls out of a deal to acquire FTX after it conducted a due diligence review of FTX’s financials.

(Link)

• The Wall Street Journal reports that the U.S. Securities and Exchange Commission (SEC) and Department of Justice (DOJ) have launched a probe into the FTX fallout. (Link)

Nov 10:

• FTX announces a plan to allow holders of Tron-based tokens to swap assets from FTX 1:1 to external wallets. (Link)

• The Wall Street Journal reports that FTX funded Alameda Research with customer assets. (Link)

• Binance releases its on-chain Merkel Tree Proof-of-Assets. (Link)

Nov 11:

• The Bahamas Securities Commission freezes FTX’s assets. (Link)

• FTX files for Chapter 11 bankruptcy. (Link)

• Crypto lender BlockFi suspends client withdrawals. (Link)

Nov 12:

• More than $600 million of FTX’s remaining funds is stolen in a hack. (Link

Nov 14:

• Binance sets up an industry recovery fund for crypto projects under liquidity crunch in the wake of the FTX collapse. (Link)

• SBF began posting cryptic letters in a series of twitter threads. (Link)

Nov 16:

• Bloomberg reports that crypto lender BlockFi is set to file for bankruptcy within days. (Link)

• Crypto lender Genesis, having $175 million worth of funds stuck in its FTX account, halts withdrawals and new loan origination within its lending unit. (Link)

• Crypto exchange Gemini pauses customer withdrawals from its earn program, for which Genesis Global Capital was the lending partner. (Link)

• South Korean crypto exchange GOPAX halts redemptions on its Genesis-based DeFi product. (Link)

Nov 17:

• Major exchanges and VCs, in a series of statements, confirm that they have no or limited exposure to Genesis lending. (Galaxy Digital Holdings, Coinbase, Binance, Jump Crypto)

• VOX releases an exclusive interview with SBF. (Link)

• FTX’s Chapter 11 bankruptcy filing with the Delaware bankruptcy court is made public. Absence of internal control and trustworthy financial information as opposed to concentration

of control in the hands of a very small group of inexperienced, unsophisticated individuals were cited as the primary causes of the downfall. (Link)

• The Securities Commission of The Bahamas directs FTX to transfer all digital assets of FTX Digital Markets Ltd. to the Bahamian regulator’s wallet. (Link)

Nov 18:

• The Wall Street Journal reports that Genesis sought an emergency loan of $1B from investors. (Link)

Nov 20:

• Grayscale refuses to provide wallet addresses containing GBTC’s bitcoins and publishes a statement. (Link)

• A new revelation from FTX’s bankruptcy filing reveals that the troubled exchange owes nearly $3.1B to the top 50 creditors. (Link)

Nov 21:

• A FTX hacker is found to have swapped $59M worth of ETH for renBTC and made four separate swaps. (Link)

• Bloomberg writes that Genesis is warning potential investors of possible bankruptcy upon failure to raise enough funds. (Link)

• Coinbase Custody discloses the amount of assets held in Grayscale products as of Sep 30, 2022. (Link)