All of a sudden it went really fast. After holes in FTX’s balance sheet were uncovered, the house of cards suddenly collapsed: Investors could no longer get their coins, FTX slipped into insolvency. Piece by piece the ugly puzzle is put together. Taking center stage Sam Bankman-Fried, once a celebrated rising star, is now the face of one of the biggest crypto scandals of all time. Embezzlement, gambling, arrogance – the FTX bursting has once again highlighted the vulnerability of centralized crypto exchanges. And will stick with the industry for a long time.
FTX: Chronology of the sinking
November 2nd, the beginning of the end: Coindesk reports on the incomplete accounts at FTX and Alameda Research. Around eight billion US dollars in FTT, the FTX exchange token, served as a reserve in the closely intertwined company network. Inflated reserves, false promises: The avalanche around FTX gradually started. With a tweet from Binance CEO Changpeng “CZ” Zhao, FTX finally plunges into chaos on November 6th. Zhao publicly distances himself from FTX and announces the liquidation of all FTT tokens at Binance. At that point, at the latest, rumors of insolvency intensify, the demise of FTX can no longer be stopped.
Read on now
Get access to this article and other exclusive content in the current BTC-ECHO Magazine.
Do you want to buy cryptocurrencies?
Trade over 240 cryptocurrencies like Bitcoin and Ethereum on Phemex, the platform for beginners as well as experienced investors.
The latest issues of BTC-ECHO Magazine
You might also be interested in this