Page semi-protected

FTX (company)

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search

FTX
IndustryCryptocurrency
FoundedMay 2019; 3 years ago (2019-05)
FoundersSam Bankman-Fried
Gary Wang[1]
FateChapter 11 bankruptcy (Nov. 2022)
Headquarters,
Key people
John J. Ray III, CEO (Nov. 2022 – present)[2]
Products
RevenueIncrease US$1.02 billion (2021)[3]
Increase US$272 million (2021)[3]
Increase US$388 million (2021)[3]
Number of employees
c. 300 (2022)[4]
Websiteftx.com

FTX is a Bahamas-based cryptocurrency exchange.[5][6] The exchange was founded in 2019 and, at its peak in July 2021, had over one million users and was the third-largest cryptocurrency exchange by volume.[7][8] FTX is incorporated in Antigua and Barbuda and headquartered in The Bahamas.[9] FTX is closely associated with FTX.US, a separate exchange available to US residents.[10]

Since 11 November 2022, FTX has been in Chapter 11 bankruptcy proceedings in the US court system.[11][12][13][14] Public concern began when a November 2022 CoinDesk article stated that FTX's partner firm Alameda Research held a significant portion of its assets in FTX's native token FTT.[15][16] Following this revelation, rival exchange Binance's CEO Changpeng Zhao announced that Binance would sell its holdings of the token, which was quickly followed by a spike in customer withdrawals from FTX.[17] FTX was unable to meet the demand for customer withdrawals.[18] Binance signed a letter of intent to acquire the firm, with due diligence to follow, to ensure that customers could recover their assets from FTX in a timely manner, but Binance withdrew its offer the next day, citing reports of mishandled customer funds and U.S. agency investigations.[19]

History

FTX founder Sam Bankman-Fried

Sam Bankman-Fried and Zixiao "Gary" Wang[20] founded FTX in May 2019.[21] FTX began within Alameda Research, a trading firm founded by Bankman-Fried, Caroline Ellison, and other former employees of Jane Street in 2017, in Berkeley, California.[22][23][24] FTX is an abbreviation of "Futures Exchange".[22] Changpeng Zhao of Binance purchased a 20% stake in FTX for approximately $100 million, six months after Bankman-Fried and Wang started the firm.[25]

In August 2020, FTX acquired Blockfolio, a cryptocurrency portfolio tracking app, for $150 million.[26] In July 2021, the venture raised $900 million at an $18 billion valuation from over 60 investors, including Softbank, Sequoia Capital, and other firms.[27][28] Bankman-Fried bought out Zhao's stake for approximately $2 billion.[25] In September of that year, FTX moved its headquarters from Hong Kong to The Bahamas.[29]

On January 14, 2022, FTX announced a $2 billion venture fund named FTX Ventures,[30] In November 2022, FTX Ventures' website went offline.[31] raising $400 million in Series C funding at a $32 billion valuation that month.[32] On February 11, 2022, FTX.US announced that the company would soon begin offering stock trading to its US customers.[33]

In February 2022, it was reported that FTX was creating a gaming division that would help developers add cryptocurrency, NFTs, and other blockchain-related assets into video games.[34]

In July 2022, FTX finalized a deal giving it the option to buy BlockFi for about $240 million. The deal included a $400 million credit facility for BlockFi.[35][36]

In August 2022, the Federal Deposit Insurance Corporation (FDIC) issued a cease-and-desist order to FTX for making "false and misleading representations" about deposits being covered by FDIC insurance following FTX president Brett Harrison's tweet implying otherwise.[37] Following the regulatory action, Harrison deleted the tweet and Bankman-Fried clarified in a tweet that FTX deposits are not insured by the FDIC.[38]

On September 26, 2022, FTX.US won its bid at auction for the digital assets of bankrupt crypto brokerage Voyager Digital. The value of the deal was approximately $1.42 billion, including $1.31 billion in Voyager-held cryptocurrency and $111 million in additional consideration. The deal was subject to approval by bankruptcy courts and Voyager's creditors.[39][needs update]

On September 27, 2022, FTX.US President Brett Harrison announced he would be stepping down from an active role at the exchange but would stay on in an advisory capacity. The company did not immediately announce a replacement for Harrison, who had been FTX.US president since May 2021.[40]

In October 2022, it was reported that FTX was under investigation in Texas for allegedly selling unregistered securities.[41]

November 2022 crisis and bankruptcy

FTX Token
Denominations
CodeFTT
Development
White paperFTT Whitepaper
Initial release5 May 2019 (3 years ago) (2019-05-05)
Ledger
Circulating supply134,454,978.27 FTT (est. August 2022)

Background: FTX and Alameda, Binance, and CoinDesk report

Bloomberg reported, in September 2022, on the close relationship between Alameda Research and FTX. Bloomberg noted that Alameda had functioned as a market maker for FTX early in the exchange's history, and that the trading firm remained, in June and July 2022, the biggest known depositor of stable coins on FTX.[42] Bloomberg further stated that the regulatory oversight which applies to companies operating in traditional equities markets would have prohibited the relationship between the two firms were it applicable.[42] Alameda's trading on FTX meant the trading firm was potentially in a position to gain financially when others lost money on the exchange.[43] Bankman-Fried, at points, defended Alameda's use of FTX, as a liquidity provider.[43]

According to John J. Ray III, Alameda had a “secret exemption” from FTX’s auto-liquidation protocol.[44] (Later, the existence of such an undisclosed beneficial relationship was described by Ray, the new CEO of FTX, as a "complete failure of corporate controls"[45] and indicated gross mismanagement.[44] Between early 2021 and March 2022, Alameda Research amassed crypto tokens ahead of FTX announcing the decision to list them for trading.[46]

According to anonymous sources cited by The Wall Street Journal, FTX had lent $10 billion of its customers' assets to Alameda Research in 2022,.[47] Alameda CEO Caroline Ellison disclosed to other Alameda employees that she, Sam Bankman-Fried, Gary Wang, and Nishad Singh knew about that decision.[48] An anonymous source cited by the New York Times said the same.[49] According to the sources cited by The Wall Street Journal, Ellison said the funds were used in part to pay back loans Alameda had taken to make investments.[48] Ray said that FTX used software to conceal the misuse of customer funds.[44][45][50]

Several months after Bloomberg's initial report on the relationship between the two firms, on 2 November 2022, CoinDesk reported that a significant portion of Alameda Research's assets were held in FTT, the exchange token issued by FTX. It said that there were $5.1 billion worth of FTT tokens in circulation, and that Alameda's balance sheet held $3.66 billion of "unlocked FTT", $2.16 billion of "FTT collateral", and $292 million of "locked FTT".[15] In the weeks immediately preceding the publication of the story by CoinDesk, Bankman-Fried was characterized by anonymous sources cited by Bloomberg as "desperately" attempting to raise money for FTX.[51] Additionally, Bankman-Fried had been publicly "dueling" with Changpeng Zhao on Twitter in the months preceding the CoinDesk article, in part due to disagreements stemming from their differing views on regulation of cryptocurrency.[52]

Crisis begins: Binance FTT sale, sell-off, and withdrawn rescue bid

Several days after the publication of the CoinDesk article, on 6 November, Binance CEO Changpeng Zhao said on Twitter that his firm intended to sell all its holdings of FTT.[53] Binance had received FTT from FTX in 2021 during a transaction in which FTX bought back Binance's equity stake in FTX.[54] Zhao cited "recent revelations that came to light" as the motivation for selling FTT.[54] Bloomberg and TechCrunch reported that any sale by Binance would likely have an outsized impact on FTT's price, given the token's low trading volume.[55][56] The announcement by Zhao of the pending sale and disputes between Zhao and Bankman-Fried on Twitter led to a decline in the price of FTT and other cryptocurrencies,[57] resulting in a three-day depositor selloff, like a bank run, of an estimated $6 billion that sent FTX into crisis.[58] On 8 November, Zhao announced Binance had entered into a non-binding agreement to purchase FTX due to what he referred to as a "liquidity crisis" at FTX.[59][60] The deal did not include the sale of FTX.US.[59] Zhao announced on Twitter that the company would complete due diligence soon, adding that all cryptocurrency exchanges should avoid using FTT tokens as collateral.[61][62] He also wrote that he expected FTT to be "highly volatile in the coming days as things develop". On the day of that announcement, FTT price dropped by 80 percent, erasing $2 billion in value.[63]

On 9 November, Bloomberg called the acquisition of FTX by Binance "unlikely" due to the poor state of FTX's finances.[64] Bloomberg also reported that the United States Securities and Exchange Commission and Commodity Futures Trading Commission were investigating the nature of FTX's connections to Bankman-Fried's other holdings and its handling of client funds.[65] Later that day, the Wall Street Journal reported that Binance would not move forward with the deal to acquire FTX.[66] Binance cited FTX's reported mishandling of customer funds and pending investigations of FTX as the reasons for not pursuing the deal.[67] Bankman-Fried said in a Slack message that FTX had learned through the press about Binance’s concern and decision.[66]

On 9 November, FTX's website said that it was not processing withdrawals at that time.[58] Bankman-Fried said that although the firm's assets were worth more than its clients' deposits, it would need funds from outside to meet demand for withdrawals due to a lack of liquidity.[68][69] Bankman-Fried stated on 9 November that FTX.US, as a separate company, was "not currently impacted" by the crisis.[70]

Worsening crisis: bankruptcy and unauthorized transactions

On 10 November, Axios cited anonymous sources who said that FTX approached Kraken for a potential rescue deal.[71] Bankman-Fried made several statements on 10 November, taking responsibility for FTX's failure and indicating that FTX was still seeking capital to remain solvent.[72] Bankman-Fried also announced that Alameda Research would cease trading and end operations.[73] FTX's in-house legal and compliance teams had, for the most part, resigned by 10 November.[74][75] Anonymous sources cited by the Wall Street Journal on 10 November said that Alameda Research owed FTX some $10 billion, as FTX had lent funds placed on the exchange for trading to Alameda so that Alameda could make investments with the money.[47] On 12 November, anonymous sources cited by the Wall Street Journal said Alameda CEO Caroline Ellison disclosed to other Alameda employees that she, Sam Bankman-Fried, Gary Wang, and Nishad Singh knew that client deposits were transferred from FTX to Alameda.[48] An anonymous source cited by the New York Times on 14 November said the same.[49] According to the sources cited by The Wall Street Journal, Ellison said the funds were used in part to pay back loans Alameda had taken to make investments.[48]

Though Bankman-Fried said on Twitter on 10 November that FTX.US customers did not have reason to worry, employees began attempting to sell assets belonging to the firm on the same day.[76] These assets include stock-clearing company Embed Financial Technologies and the naming rights to FTX Arena.[76]

On 10 November, the Securities Commission of the Bahamas froze the assets of one of FTX's subsidiaries, FTX Digital Markets Ltd, "and related parties", and provisionally appointed an attorney as liquidator.[77][78] Japan's Financial Services Agency ordered FTX Japan to suspend some operations.[79][80] The company's Australian subsidiary was placed under administration.[79]

On 10 November, the team running the FTX Future Fund, a charitable group bankrolled by Bankman-Fried, announced that they had resigned earlier that day.[11] Future Fund had committed $160 million in charitable grants and investments by 1 September of that year.[81]

On 11 November, FTX, FTX.US, Alameda Research, and more than 100 affiliates filed for bankruptcy in Delaware.[13][11][14] Anonymous sources cited by the New York Times said that the exchange owes as much as $8 billion.[11] The crypto lender BlockFi, which was affiliated with FTX, announced on 10 November that it was suspending operations as a result of FTX’s collapse.[11] Bankman-Fried resigned as CEO and was replaced by John J. Ray III, a corporate restructuring specialist who previously oversaw the liquidation of Enron.[13][14][82] As of 12 November, Bankman-Fried told Reuters that he was still in the Bahamas,[83] though other high-ranking FTX employees had begun leaving for Hong Kong, the location of the company's former headquarters, or other locations.[84] Authorities in the Bahamas, including the Royal Bahamas Police Force, questioned Bankman-Fried on 12 November.[85] Despite FTX's bankruptcy, Bankman-Fried continued to attempt to raise money for the firm during the weekend of 12 and 13 November.[86]

Late on 11 November, over $473 million in funds were siphoned from FTX through what Ryne Miller, FTX US's general counsel, characterized as "unauthorized transactions".[87] Miller announced that FTX and FTX US intended to move remaining funds denominated in cryptocurrency to offline "cold storage" for security.[87] The funds taken from FTX were mostly stablecoins such as Tether, and were quickly exchanged for Ether, a method used by cryptocurrency thieves to thwart attempts to retrieve stolen funds.[88] A person speaking on behalf of FTX referred to the "unauthorized transactions" as a "hack" and encouraged users to delete FTX mobile apps as they were compromised.[84] Kraken has since offered to assist in identifying the perpetrator.[89] On 14 November, Kraken's chief security officer said on Twitter that the firm knew "the identity" of a user who paid transaction fees associated with moving the stolen money through their Kraken account.[90] In an interview with Kelsey Piper published 16 November by Vox, Bankman-Fried blamed an "ex-employee" or malware on a device owned by an ex-employee for the theft.[91]

According to anonymous sources cited by Reuters, between $1 billion and $2 billion in customer funds could not be accounted for as of 12 November.[92][93] The Financial Times reported that FTX's balance sheet shortly before the bankruptcy showed $9 billion in liabilities, with $900 million in liquid assets, $5 billion in "less liquid" assets, and $3.2 billion in illiquid private equity investments.[94]

Bankman-Fried began publishing "cryptic" messages in sequence on Twitter on 14 November.[95] As of 15 November, the messages read "What HAPPENED".[95]

On 15 November, FTX sought to raise $10 billion in liquidity from investors.[96]

On 17 November, John J. Ray III, the CEO brought in as a liquidator stated in a sworn declaration submitted in bankruptcy court that according to FTX's records, its subsidiary Alameda Research had lent $1 billion to Bankman-Fried and more than $500 million to FTX co-founder Nishad Singh as of 30 September.[97] Ray stated that despite having been involved in the bankruptcies of Enron, Residential Capital, Nortel and Overseas Shipholding, "Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here. From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented."[98][99]

Widening impact and contagion fears

The exchange token of Crypto.com, Cronos, lost approximately $1 billion in value in November,[100] a decline attributed in part due to the collapse of FTX and in part due to reporting that Crypto.com had accidentally sent $400 million of Ether to another exchange.[47][48] On 14 November, Crypto.com's CEO assured users that the exchange was functioning as normal.[100] Commenters and customers remained fearful that Crypto.com could experience a collapse similar to FTX.[101]

BlockFi, a cryptocurrency lender, was reportedly taking steps to file for bankruptcy as of 15 November.[102] The firm had earlier begun preventing withdrawals.[102] The company disclosed "significant exposure" to FTX on 14 November.[102] Another cryptocurrency lender, Genesis, a subsidiary of Digital Currency Group, halted withdrawals on 16 November.[103] This halt caused Gemini, an exchange owned by the Winklevoss twins, to cease allowing redemptions for clients using a service provided through a partnership with Genesis.[104] Another Digital Currency Group subsidiary, Grayscale, saw the value of its flagship offering, the publicly traded Grayscale Bitcoin Trust, decline by 20% over the two weeks preceding 17 November.[105] Grayscale Bitcoin Trust was trading at a discounted price, 42% below the value of its Bitcoin, as of 14 November.[106]

Concerns have also been raised about Silvergate Bank, as FTX was a depositor and could have also been a source of credit exposure. Silvergate has said that it has ample liquidity and no loan exposure to FTX. These concerns have been magnified due to Silvergate's key role as a gateway between its cryptocurrency clients and the wider financial world.[107][108]

Responses and effects

Effects on investors

Institutional investors that stand to lose money due to their stakes in FTX include Tiger Global Management, the Ontario Teachers' Pension Plan, SoftBank Group, BlackRock, Lightspeed Venture Partners, Temasek, and Sequoia Capital.[109][110][111][112][113] Sequoia Capital wrote down its equity in FTX to $0 on 9 November, losing some $214 million.[114] Sequoia released a notice to investors, also published on Twitter, assuring them the firm's stake in FTX represented a small amount of its overall portfolio,[115] and replaced a profile of Bankman-Fried published on the firm's website with a link to the same notice.[116][117][118] The Ontario Teachers' Pension Plan released a similar statement.[119] Temasek later wrote down its investment on 16 November.[120] Several public figures also invested in FTX or received compensation for promoting the company.[121] These include former couple Tom Brady and Gisele Bundchen, as well as Shaquille O’Neal, Stephen Curry, and Kevin O’Leary.[121]

Anthony Scaramucci, founder of SkyBridge Capital, announced the firm was attempting to buy back a 30% stake in the business owned by FTX.[122]

Effects on other cryptocurrency firms and cryptocurrency markets

Cryptocurrency investment firms with assets still held on FTX after its bankruptcy include Galois Capital and Galaxy Digital.[123]

Cryptocurrencies experienced swings and declines in value as news of FTX's collapse first emerged in early November: Tether dropped below its peg price of $1.00 to $0.97[124] and Bitcoin sank to its lowest price in two years.[14] Share prices for publicly traded cryptocurrency companies declined.[125] The price of Solana, which was affiliated with Bankman-Fried, declined as well.[126] The crisis at FTX has inspired an increase in withdrawals from other exchanges.[127] A decline in the value of Cronos, the token of exchange Crypto.com, triggered fears of the potential for a collapse similar to that of FTX and spurred withdrawals from the platform.[101] CEO Kris Marszalek provided assurances that the firm was liquid and that it did not use Cronos in a manner similar to the way FTX used FTT.[101] Bloomberg reported that the collapse of FTX exacerbated institutional skepticism of cryptocurrencies as an asset class.[128]

Responses and commentary

Jim Chanos predicted the collapse of FTX would lead to increased scrutiny and regulation of cryptocurrencies. Chanos further criticized the cryptocurrency sector as "designed to extract fees from really unsuspecting investors".[129] Richard Handler, CEO of American financial firm Jefferies Group, tweeted on 10 November that he had attempted to meet with Bankman-Fried in July and again in September as he perceived he was "in over his head".[130] Handler stated that Bankman-Fried did not respond to the emails sent from Jefferies staff sent on Handler's behalf.[130] The sudden collapse of FTX has been compared to bankruptcy of Lehman Brothers by writers in publications including The New York Times and the Financial Times.[131][132] Lawrence Summers acknowledged the comparisons to Lehman and further compared the collapse to the Enron scandal, caused by fraud perpetrated by Enron executives.[133] Rostin Behnam, the Chairman of the Commodity Futures Trading Commission, called for Congress to grant the organization more power to regulate cryptocurrencies.[134]

Lawsuits and legal involvement

Following the collapse of FTX, the Royal Bahamas Police Force launched a criminal investigation into the company.[135][136]

Anonymous sources cited by Bloomberg said that the office of the United States Attorney for the Southern District of New York had begun an investigation into FTX's collapse as of 14 November.[137]

The United States House Committee on Financial Services plans to conduct hearings in December on the collapse of FTX, and committee leaders said they would seek testimony from Bankman-Fried.[138] According to anonymous sources cited by The Information, some venture capital firms are considering suing Bankman-Fried.[139]

Sponsorships

The FTX Arena in Miami, Florida

FTX sponsored a number of sports teams and organizations. Deals included the naming rights to the Miami Heat’s basketball stadium, renaming it FTX Arena,[140][141] a partnership with Major League Baseball to place the FTX logo on the uniforms of umpires,[142] and a deal with the Mercedes-AMG Petronas F1 Team to add the FTX logo to the cars and uniforms of both Lewis Hamilton and George Russell.[143]. The professional esports organization TSM also had a naming rights deal with FTX, thus the organization became TSM FTX.[144] TSM cut ties with the company after the collapse.[145]

Other sponsorships included the title sponsorships of the first season of MLB Home Run Derby X,[146] and the title sponsorship of the tournaments FTX Road to Miami and FTX Crypto Cup as part of the Champions Chess Tour 2022.[147]

Following the bankruptcy of FTX in November 2022, both the Mercedes—AMG Petronas F1 Team and the Miami Heat cut ties with the company, with the latter also announcing that they would be seeking a new naming rights partner for the FTX Arena.[148][149]

References

  1. ^ "FTX raises $900M". inside.com. Retrieved 2021-07-28.
  2. ^ "Enron's Liquidator to Oversee FTX's Massive Crypto Bankruptcy". bloomberglaw.com. Retrieved 2022-11-11.
  3. ^ a b c Rooney, Kate (2022-08-20). "FTX grew revenue 1,000% during the crypto craze, leaked financials show". CNBC.
  4. ^ Mccrank, John; Davies, Megan (2022-07-06). "Crypto exchange FTX has "a few billion" to support industry - Bankman-Fried". Reuters.
  5. ^ Osipovich, Alexander (2021-07-20). "Crypto Exchange FTX Valued at $18 Billion in Funding Round". The Wall Street Journal. ISSN 0099-9660. Retrieved 2021-10-07.
  6. ^ "FTX Deal Gives Institutions New Access to Crypto Markets". Bloomberg.com. 2021-07-13. Retrieved 2021-10-07.
  7. ^ "Crypto firm FTX Trading's valuation rises to $18 BLN after $900 MLN investment". Reuters. 20 July 2021.
  8. ^ "The downfall of FTX's Sam Bankman-Fried sends shockwaves through the crypto world". NPR. 2022-11-14. Retrieved 2022-11-14.
  9. ^ Ossinger, Joanna (24 September 2021). "Bankman-Fried's Crypto Exchange FTX Leaves Hong Kong for Bahamas". Bloomberg.
  10. ^ Hajric, Vildana (29 July 2021). "Crypto Exchange Competition Heats Up With FTX.US Growth Spurt". Bloomberg.com. Retrieved 2021-07-29.
  11. ^ a b c d e David Yaffe-Bellany (November 11, 2022). "Embattled Crypto Exchange FTX Files for Bankruptcy". New York Times. Retrieved November 11, 2022.
  12. ^ Ostroff, Caitlin; Ge Huang, Vicky; Gladstone, Alexander (11 November 2022). "FTX Files for Bankruptcy; Sam Bankman-Fried Steps Down as CEO". The Wall Street Journal. Retrieved 11 November 2022.
  13. ^ a b c Hill, Jeremy (11 November 2022). "FTX Goes Bankrupt in Stunning Reversal for Crypto Exchange". Bloomberg. Retrieved 11 November 2022.
  14. ^ a b c d "Sam Bankman-Fried's $32bn FTX crypto empire files for bankruptcy". Financial Times. 11 November 2022. Retrieved 11 November 2022.
  15. ^ a b Allison, Ian (2 November 2022). "Divisions in Sam Bankman-Fried's Crypto Empire Blur on His Trading Titan Alameda's Balance Sheet". CoinDesk. Retrieved 9 November 2022.
  16. ^ Macheel, Tanaya. "Bitcoin briefly touches a new low for the year, FTX token plunges more than 75% in broad crypto sell-off". CNBC. Retrieved 2022-11-18.
  17. ^ Lagerkranser, Philip; Nicolle, Emily; Shukla, Sidhartha (November 7, 2022). "Tensions Between Crypto's Two Richest CEOs Spill Into Markets". Bloomberg News.
  18. ^ Wilson, Tom; Berwick, Angus (2022-11-08). "Crypto exchange FTX saw $6 bln in withdrawals in 72 hours". Reuters. Retrieved 2022-11-18.
  19. ^ Rooney, MacKenzie. "Binance backs out of FTX rescue, leaving the crypto exchange on the brink of collapse". CNBC. Retrieved 2022-11-18.
  20. ^ Olinga, Luc. "FTX Employees Used Company Funds to Buy Homes in the Bahamas". TheStreet. Retrieved 2022-11-17.
  21. ^ "FTX raises $900M". inside.com. Retrieved 2021-10-07.
  22. ^ a b Osipovich, Alexander; Zuckerman, Gregory (11 November 2022). "How FTX's Sam Bankman-Fried Went From Crypto Golden Boy to Villain". The Wall Street Journal. Retrieved 11 November 2022.
  23. ^ Weisenthal, Joe; Alloway, Tracy (1 April 2021). "The Ex-Jane Street Trader Who's Building a Multi-Billion Crypto Empire". Bloomberg News. Archived from the original on 1 April 2021.
  24. ^ Yaffe-Bellany, David (14 May 2022). "A Crypto Emperor's Vision: No Pants, His Rules". The New York Times. Archived from the original on 14 May 2022.
  25. ^ a b Berwick, Angus; Wilson, Tom (10 November 2022). "Behind FTX's fall, battling billionaires and a failed bid to save crypto". Reuters. Retrieved 10 November 2022.
  26. ^ Dillet, Romain (25 August 2020). "Cryptocurrency exchange FTX acquires portfolio tracker Blockfolio". TechCrunch. Yahoo.
  27. ^ Kruppa, Miles (July 20, 2021). "Crypto exchange FTX secures backing from venture capital and hedge funds". Financial Times.
  28. ^ "Crypto Firm FTX Valued at $18 Billion as SoftBank, Ribbit Invest". Bloomberg.com. 20 July 2021.
  29. ^ "Bankman-Fried's Crypto Exchange FTX Leaves Hong Kong for Bahamas". Bloomberg.com. 2021-09-24. Retrieved 2021-11-01.
  30. ^ Chernova, Yuliya (2022-01-14). "Crypto Exchange FTX Sets Up $2 Billion Venture Fund". The Wall Street Journal. Retrieved 2022-01-14.
  31. ^ "FTX Ventures Website Goes Offline". The Wall Street Journal. Retrieved 9 November 2022.
  32. ^ Browne, Ryan (2022-01-31). "Cryptocurrency exchange FTX hits $32 billion valuation despite bear market fears". CNBC. Retrieved 2022-01-31.
  33. ^ "FTX US Stocks are coming soon". FTX US. Retrieved 11 February 2022.
  34. ^ Gariffo, Michael. "FTX's new gaming division faces an uphill battle in convincing gamers to buy NFTs". ZDNet. Retrieved 2022-02-22.
  35. ^ Jacob, Paul Vigna and Denny. "FTX Strikes Deal With Option to Buy Crypto Lender BlockFi for Up to $240 Million". WSJ.
  36. ^ Rooney, Kate (July 1, 2022). "FTX signs a deal giving it the option to buy crypto lender BlockFi". CNBC.
  37. ^ Scaggs, Alexandra (19 August 2022). "About that deposit insurance...". Financial Times.
  38. ^ Roth, Emma (20 August 2022). "FTX's money isn't insured, FDIC says". The Verge.
  39. ^ Kharif, Olga; Yang, Yueqi. "Crypto Exchange FTX Wins Bankrupt Firm Voyager's Assets". www.bloomberg.com. Retrieved 27 September 2022.
  40. ^ Capoot, Ashley. "Crypto exchange FTX is replacing its U.S. president". CNBC. Retrieved 27 September 2022.
  41. ^ "Texas regulators have their eyes on one of the most powerful players in the crypto world". CNN. 21 October 2022. Retrieved 2022-11-10.
  42. ^ a b Massa, Annie; Irrera, Anna; Miller, Hannah (14 September 2022). "Crypto Quant Shop With Ties to FTX Powers Bankman-Fried's Empire". Bloomberg. Retrieved 10 November 2022.
  43. ^ a b Yaffe-Bellany, David (14 November 2022). "How Sam Bankman-Fried's Crypto Empire Collapsed". The New York Times. Retrieved 15 November 2022.
  44. ^ a b c Morrow, Allison (2022-11-17). "'Complete failure:' Filing reveals staggering mismanagement inside FTX | CNN Business". CNN. Retrieved 2022-11-18.
  45. ^ a b "New CEO Says FTX Suffered 'Complete Failure of Corporate Controls'". WSJ. Retrieved 2022-11-18.
  46. ^ "Alameda Amassed Crypto Tokens Ahead of FTX Listings, Public Data Shows". WSJ. Retrieved 2022-11-18.
  47. ^ a b c Ge Huang, Vicky; Osipovich, Alexander; Kowsman, Patricia (10 November 2022). "FTX Tapped Into Customer Accounts to Fund Risky Bets, Setting Up Its Downfall". The Wall Street Journal. Retrieved 10 November 2022.
  48. ^ a b c d e Michaels, Dave; Yu, Elaine; Ostroff, Caitlin (12 November 2022). "Alameda, FTX Executives Are Said to Have Known FTX Was Using Customer Funds". The Wall Street Journal. Retrieved 12 November 2022.
  49. ^ a b Yaffe-Bellany, David (2022-11-14). "How Sam Bankman-Fried's Crypto Empire Collapsed". The New York times. Retrieved 2022-11-14.
  50. ^ Berwick, Angus (2022-11-13). "Exclusive: At least $1 billion of client funds missing at failed crypto firm FTX". Reuters. Retrieved 2022-11-18.
  51. ^ Massa, Annie (11 November 2022). "Sam Bankman-Fried Fooled the Crypto World and Maybe Even Himself". Bloomberg. Retrieved 14 November 2022.
  52. ^ Lagerkranser, Philip; Nicolle, Emily (14 November 2022). "Binance's Billionaire CEO Casts Himself as Crypto's New Savior". Bloomberg. Retrieved 14 November 2022.
  53. ^ Ostroff, Caitlin (7 November 2022). "Binance to Sell Holdings of FTX's Token as Relations Between Crypto Exchanges Fray". The Wall Street Journal. Retrieved 7 November 2022.
  54. ^ a b Kharif, Olga (6 November 2022). "Binance To Sell $529 Million of Bankman-Fried's FTT Token". Bloomberg. Retrieved 7 November 2022.
  55. ^ Lagerkranser, Philip; Nicolle, Emily; Shukla, Sidhartha (7 November 2022). "Binance's CZ and FTX's Sam Bankman-Fried Trade Barbs Over Twitter". Bloomberg. Retrieved 7 November 2022.
  56. ^ Melinek, Jacquelyn (7 November 2022). "Here's the rundown on the Binance and FTX fiasco". TechCrunch. Retrieved 7 November 2022.
  57. ^ Lagerkranser, Philip; Ossinger, Joanna (8 November 2022). "Crypto Billionaires' Brawl Triggers Contagion Fears in Markets". Bloomberg. Retrieved 8 November 2022.
  58. ^ a b Yaffe-Bellany, David (9 November 2022). "Binance Pulls Out of Deal to Acquire Rival Crypto Exchange FTX". The New York Times.
  59. ^ a b Yang, Yueqi (8 November 2022). "CZ's Binance to Buy Rival FTX After Sam Bankman-Fried Faces Liquidity Crunch". Bloomberg. Retrieved 8 November 2022.
  60. ^ Ge Huang, Vicky; Ostroff, Caitlin (8 November 2022). "Crypto Exchange Binance Agrees to Acquire Rival FTX". The Wall Street Journal. Retrieved 8 November 2022.
  61. ^ Singh, Manish (2022-11-08). "Crypto giant Binance to acquire rival FTX following 'liquidity crunch'". TechCrunch. Retrieved 2022-11-08.
  62. ^ "Binance plans to buy rival FTX in bailout as crypto market crumbles". Binance plans to buy rival FTX in bailout as crypto market crumbles - 'SCMP Tech' News | Hong Kong. Retrieved 2022-11-09.
  63. ^ Sigalos, MacKenzie (2022-11-08). "FTX's token plunges 80% on liquidity concerns, wiping out over $2 billion in value". CNBC.
  64. ^ Yang, Yueqi; Ghosh, Suvashree (9 November 2022). "FTX's Financial Black Hole Leaves Binance Balking at Rescue Plan". Bloomberg. Retrieved 9 November 2022.
  65. ^ Beyoud, Lydia; Yang, Yueqi; Kharif, Olga (9 November 2022). "Sam Bankman-Fried's FTX Empire Faces US Probe Into Client Funds, Lending". Bloomberg. Retrieved 9 November 2022.
  66. ^ a b Binance Says It Will Walk Away from Deal to Buy FTX Archived 2022-11-09 at the Wayback Machine, Wall Street Journal, 9 November 2022.
  67. ^ Sigalos, MacKenzie; Rooney, Kate (2022-11-09). "Binance backs out of FTX rescue, leaving the crypto exchange on the brink of collapse". CNBC.
  68. ^ "Binance ditches deal to rescue rival crypto exchange FTX". Financial Times. 10 November 2022. Retrieved 10 November 2022.
  69. ^ "Sam Bankman-Fried apologises for FTX crisis". Financial Times. 10 November 2022. Retrieved 11 November 2022.
  70. ^ "FTX: Cryptocurrency market rocked by near-collapse of exchange". BBC News. 9 November 2022. Retrieved 10 November 2022.
  71. ^ Shen, Lucinda (2022-11-10). "FTX approaches Kraken amid scramble to find funding". Axios. Retrieved 2022-11-10.
  72. ^ Massa, Annie (10 November 2022). "Bankman-Fried Vows to 'Give Anything' for Capital as FTX Flails". Bloomberg. Retrieved 10 November 2022.
  73. ^ "Sam Bankman-Fried says Alameda Research to wind down trading, FTX attempting to raise capital". TechCrunch. 10 November 2022. Retrieved 2022-11-10.
  74. ^ Sorkin, Andrew Ross; Mattu, Ravi; Warner, Bernhard; Kessler, Sarah; Gandel, Stephen; Merced, Michael J. de la; Hirsch, Lauren; Livni, Ephrat (10 November 2022). "A Reckoning Awaits FTX". The New York Times. Retrieved 10 November 2022.
  75. ^ Hoffman, Liz; Saacks, Bradley; Matsakis, Louise (9 November 2022). "FTX ditched by Binance while also losing most of its legal and compliance staff | Semafor". Semafor. Retrieved 10 November 2022.
  76. ^ a b Massa, Annie (10 November 2022). "Inside FTX.US, Employees Are Trying to Sell Assets With Sam Bankman-Fried Away". Bloomberg. Retrieved 10 November 2022.
  77. ^ "FTX Latest: Bahamas Freezes FTX.com Assets, Appoints Liquidator". Bloomberg. 10 November 2022. Retrieved 10 November 2022.
  78. ^ Berwick, Angus; Sen, Anirban (11 November 2022). "FTX looks for $9.4 bln in rescue funds, Bahamas freezes some assets". Reuters. Retrieved 11 November 2022.
  79. ^ a b "Global regulators circle Sam Bankman-Fried's FTX exchange". Financial Times. 11 November 2022. Retrieved 11 November 2022.
  80. ^ "Administrative Actions against FTX Japan, Inc". www.fsa.go.jp. Retrieved 11 November 2022.
  81. ^ "Sam Bankman-Fried's 'Effective Altruism' Team Resigns Amid FTX Meltdown". Gizmodo. 2022-11-11.
  82. ^ Hill, Jeremy (11 November 2022). "Enron's Liquidator to Oversee FTX's Massive Crypto Bankruptcy". Bloomberg. Retrieved 11 November 2022.
  83. ^ Yang, Yuequi (12 November 2022). "Sam Bankman-Fried Says He's in the Bahamas, Reuters Reports". Bloomberg. Retrieved 12 November 2022.
  84. ^ a b Saacks, Bradley (12 November 2022). "Some staff of beleaguered FTX crypto exchange leave Bahamas for Hong Kong". Semafor. Retrieved 12 November 2022.
  85. ^ Biron, Bethany (13 November 2022). "Bahamian police reportedly interviewed Sam Bankman-Fried this weekend, investigations into downfall intensify". Business Insider. Retrieved 14 November 2022.
  86. ^ Ostroff, Caitlin; Ge Huang, Vicky; Jin, Berber (15 November 2022). "FTX Founder Sam Bankman-Fried Attempts to Raise Fresh Cash Despite Bankruptcy". The Wall Street Journal. Retrieved 15 November 2022.
  87. ^ a b Huang, Elaine Yu and Vicky Ge (11 November 2022). "FTX Is Investigating a Potential Hack Amid Bankruptcy Filing". The Wall Street Journal. Retrieved 12 November 2022.
  88. ^ Ghosh, Suvashree (11 November 2022). "Bankrupt FTX Hit by Mysterious Outflow of About $662 Million". Bloomberg. Retrieved 12 November 2022.
  89. ^ Nicolle, Emily (12 November 2022). "Kraken to Assist In Probing FTX Unauthorized Crypto Withdrawals". Bloomberg. Bloomberg. Archived from the original on 12 November 2022. Retrieved 12 November 2022.
  90. ^ Greenberg, Andy (13 November 2022). "The Hunt for the FTX Thieves Has Begun". Wired. Retrieved 14 November 2022.
  91. ^ Piper, Kelsey (16 November 2022). "Sam Bankman-Fried tries to explain himself". Vox. Retrieved 16 November 2022.
  92. ^ Sigalos, MacKenzie (2022-11-12). "Between $1 billion and $2 billion of FTX customer funds have disappeared, SBF had a secret 'back door' to transfer billions: Report". CNBC.
  93. ^ Berwick, Angus (13 November 2022). "Exclusive: At least $1 billion of client funds missing at failed crypto firm FTX". Reuters. Retrieved 26 November 2022.
  94. ^ Gara, Antoine; Shubber, Kadhim; Oliver, Joshua (12 November 2022). "FTX held less than $1bn in liquid assets against $9bn in liabilities". Archived from the original on 12 November 2022. Retrieved 12 November 2022. Vast gap highlights the dire state of Sam Bankman-Fried’s exchange before it collapsed into bankruptcy
  95. ^ a b Millson, Alex (15 November 2022). "Sam Bankman-Fried Posts Weird Cryptic Tweets After Wealth Wipeout". Bloomberg. Retrieved 15 November 2022.
  96. ^ "Revealed: FTX's emergency fundraising term sheet". Financial Times. 2022-11-15. Retrieved 2022-11-16.
  97. ^ Goswami, Rohan. "FTX used corporate funds to purchase employee homes, new filing shows". CNBC. Retrieved 2022-11-17.
  98. ^ "FTX Chief Slams Bankman-Fried, Calls Controls 'Complete Failure'". news.bloombergtax.com. Retrieved 2022-11-17.
  99. ^ John, Jay Ray III (2022-11-17). "DECLARATION OF JOHN J. RAY III IN SUPPORT OF CHAPTER 11 PETITIONS AND FIRST DAY PLEADINGS". IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE. Archived from the original on 2011-11-17. Retrieved 2022-11-17.
  100. ^ a b Shukla, Sidhartha; Ghosh, Suvashree (14 November 2022). "Crypto.com's Sinking Token Stirs Fresh Anxiety After FTX Wipeout". Bloomberg. Retrieved 14 November 2022.
  101. ^ a b c Levy, Ari; Sigalos, MacKenzie (15 November 2022). "Crypto.com customers worry it could follow FTX, as CEO tries to reassure them everything's fine". CNBC. Retrieved 16 November 2022.
  102. ^ a b c Gladstone, Alexander; Ge Huang, Vicky; Biswas, Soma (15 November 2022). "BlockFi Prepares for Potential Bankruptcy as Crypto Contagion Spreads". The Wall Street Journal. Retrieved 16 November 2022.
  103. ^ Greifeld, Katherine; Hajric, Vildana (16 November 2022). "Silbert's Once-$10 Billion Crypto Empire Is Showing Cracks". Bloomberg. Retrieved 17 November 2022.
  104. ^ Shen, Muyao (16 November 2022). "Winklevosses' Gemini Delays Withdrawals on Lending Program". Bloomberg. Retrieved 17 November 2022.
  105. ^ Ross Sorkin, Andrew; Mattu, Ravi; Warner, Bernhard; Kessler, Sarah; Gandel, Stephen; J. de la Merced, Michael; Hirsch, Lauren; Livni, Ephrat (17 November 2022). "Investor Losses from FTX's Implosion Are Growing". The New York Times. Retrieved 17 November 2022.
  106. ^ Greifeld, Katherine (14 November 2022). "World's Biggest Crypto Fund Hits Record 42% Discount to Value of Bitcoin It Holds". Bloomberg. Retrieved 17 November 2022.
  107. ^ Reyes, Mark (18 November 2022). "Silvergate Capital Shares Slide as FTX Fallout Attracts Short Sellers". Bloomberg.com. Retrieved 20 November 2022.
  108. ^ Benoit, David (20 November 2022). "Crypto Bank Silvergate Battles FTX Contagion Fears". Wall Street Journal. Retrieved 20 November 2022.
  109. ^ "FTX". Sequoia Capital US/Europe. Retrieved 9 November 2022.
  110. ^ "FTX". Lightspeed Venture Partners.
  111. ^ Gelsi, Steve. "FTX problems mean big headaches for its private equity investors". MarketWatch.
  112. ^ Li, Selena; Westbrook, Tom; Howcroft, Elizabeth; Howcroft, Elizabeth (9 November 2022). "Cryptocurrencies fall after FTX-Binance turmoil spooks investors". Reuters. Retrieved 9 November 2022.
  113. ^ Parmar, Hema; Tan, Gillian (9 November 2022). "FTX Fiasco Hits Investors From Tiger Global to Tom Brady". Bloomberg. Retrieved 9 November 2022.
  114. ^ Friedman, Larry Hatheway and Alex (10 November 2022). "The Midterms' Red Ripple Delivers Uncertainty to the Markets". Barrons. Retrieved 10 November 2022.
  115. ^ McBride, Sarah (9 November 2022). "Sequoia Capital Writes Down Entire Value of Its FTX Stake". Bloomberg. Retrieved 10 November 2022.
  116. ^ Stone, Brad (14 November 2022). "FTX Implodes, and a Top VC Backer Falls on Its Face". Bloomberg. Retrieved 14 November 2022.
  117. ^ "The downfall of FTX's Sam Bankman-Fried sends shockwaves through the crypto world". NPR. 14 November 2022. Retrieved 15 November 2022.
  118. ^ Nguyen, Britney (10 November 2022). "FTX investor Sequoia removed its glowing 13,000-word profile of Sam Bankman-Fried and replaced it with somber note after its investment cratered to $0". Business Insider. Retrieved 15 November 2022.
  119. ^ Rajagopal, Divya (10 November 2022). "Ontario Pension says any loss from FTX investment to have limited impact". Reuters. Retrieved 11 November 2022.
  120. ^ Ramli, David; Gregori, Reto (16 November 2022). "Singapore's Temasek Writes Down $275 Million FTX Investment". Bloomberg. Retrieved 17 November 2022.
  121. ^ a b Lukpat, Alyssa (10 November 2022). "Tom Brady. Stephen Curry. Shaq. See the Celebrities With Ties to FTX". The Wall Street Journal. Retrieved 14 November 2022.
  122. ^ Parmar, Hema (11 November 2022). "Scaramucci's SkyBridge Is Trying to Buy Back FTX's 30% Stake". Bloomberg. Retrieved 11 November 2022.
  123. ^ Muyao, Shen (13 November 2022). "Crypto Hedge Fund Galois Confirms $40 Million Exposure to FTX". Bloomberg. Retrieved 14 November 2022.
  124. ^ Ashworth, Louis; Elder, Bryce (10 November 2022). "Watching tether wither, together". The Financial Times. Retrieved 10 November 2022.
  125. ^ Hajric, Vildana (11 November 2022). "Crypto Markets Buckle as FTX Bankruptcy Spurs Search for Casualties". Bloomberg. Retrieved 11 November 2022.
  126. ^ Jagtiani, Sunil; Ossinger, Joanna (13 November 2022). "FTX Latest: Solana Sell-Off Deepens; Bankman-Fried Questioned". Bloomberg. Retrieved 13 November 2022.
  127. ^ Shukla, Sidhartha; Akhtar, Tanzeel (14 November 2022). "FTX Fiasco Sparks Billions of Dollars of Outflows From Exchanges". Bloomberg. Retrieved 14 November 2022.
  128. ^ Thomasson, Lynn; Rao-Coverley, Sujata (13 November 2022). "Big Investors Are Giving Up on Crypto Markets Going Mainstream". Bloomberg. Retrieved 14 November 2022.
  129. ^ Weisenthal, Joe; Alloway, Tracy (9 November 2022). "Short Seller Jim Chanos Warns the Crypto Crackdown Is Coming Now". Bloomberg. Retrieved 10 November 2022.
  130. ^ a b Wilson, Harry (10 November 2022). "Jefferies CEO Says He Offered FTX's Bankman-Fried Rescue Advice in July". Bloomberg. Retrieved 10 November 2022.
  131. ^ Roose, Kevin (9 November 2022). "Is This Crypto's Lehman Moment?". The New York Times. Retrieved 11 November 2022.
  132. ^ Chipolina, Scott (11 November 2022). "FT Cryptofinance: Crypto's Lehman moment". Financial Times. Retrieved 11 November 2022.
  133. ^ Anstey, Chris (11 November 2022). "FTX Meltdown Has 'Whiffs' of Enron-Like Scandal, Summers Says". Bloomberg. Retrieved 11 November 2022.
  134. ^ Doherty, Katherine; Almeida, Isis (14 November 2022). "FTX's Downfall Shows CFTC Needs More Crypto Sway, Chairman Says". Bloomberg. Retrieved 14 November 2022.
  135. ^ "Bankrupt crypto exchange FTX is under criminal investigation in The Bahamas". CNN. 13 November 2022. Retrieved 14 November 2022.
  136. ^ Johnson, Katanga (November 13, 2022). "FTX Faces Criminal Misconduct Probe by Bahamas Authorities". www.bloomberg.com. Retrieved 2022-11-15.
  137. ^ Benny-Morrison, Ava (14 November 2022). "FTX Collapse Probed by Federal Prosecutors in Manhattan". Bloomberg. Retrieved 14 November 2022.
  138. ^ Shepardson, David (2022-11-16). "U.S. House committee to hold a hearing on the collapse of FTX". Reuters. Retrieved 2022-11-16.
  139. ^ "VCs Consider Suing Bankman-Fried". The Information. Retrieved 2022-11-16.
  140. ^ Hanks, Douglas (June 2, 2021). "Miami Heat to play in FTX Arena after county approves $135M deal with crypto exchange". Miami Herald.
  141. ^ "It's Official! Miami Heat Home to be Named FTX Arena". WFOR-TV. 26 March 2021.
  142. ^ "MLB, FTX cryptocurrency exchange partner". MLB.com. Major League Baseball. 23 June 2021.
  143. ^ Conway, Luke (23 September 2021). "FTX Crypto Exchange Partners With Mercedes F1 Team". The Street Crypto. The Arena Group.
  144. ^ Daniels, Tom (2021-06-04). "TSM secures $210m 10-year naming rights deal with FTX". Esports Insider. Retrieved 2022-12-01.
  145. ^ Šimić, Ivan (2022-11-16). "TSM suspends major $210m naming rights deal with FTX". Esports Insider. Retrieved 2022-12-01.
  146. ^ "FTX MLB Home Run Derby X". MLB.com. Major League Baseball. Retrieved July 9, 2022.
  147. ^ "Starting Sunday: FTX Road to Miami online tournament". ChessBase. July 8, 2022.
  148. ^ "Mercedes suspends partnership with FTX". ESPN.com. 2022-11-11. Retrieved 2022-11-12.
  149. ^ "Miami Heat and Miami-Dade County statement". Instagram. 2022-11-11. Retrieved 2022-11-12.

External links