FTX Exchange Collapse and Bankruptcy
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FTX Trading Ltd., once a major cryptocurrency exchange firm valued at around $40 billion, collapsed over a 10-day period in November 2022. The catalyst for its fall was a report by CoinDesk on November 2, which revealed that Alameda Research, a quantitative trading firm also run by Sam Bankman-Fried, held a $5 billion position in FTT, the native token of FTX. This disclosure raised concerns about undisclosed leverage and solvency across Bankman-Fried's companies. Sam Bankman-Fried, the former crypto billionaire at the center of this scandal, faced the largest-ever pretrial bond, set at $250 million. FTX exchange gained approval from the court to liquidate assets and provide some relief to creditors.
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About FTX
"FTX Trading Ltd. was one of the largest cryptocurrency exchange firms, known for its specialty in buying and selling crypto derivatives, and once valued at about $40 billion"
Co-founded by Sam Bankman-Fried and Gary Wang in May 2019, FTX was available globally, offering trading for numerous cryptocurrencies and raising substantial investment capital[52].
History Of FTX
External Investors
Investors to FTX included Temasak, Paradigm, the Ontario Teachers’ Pension Plan Board, and NEA[53].
About Sam Bankman-Fried
Sam Bankman Fried gained his innitial wealth by collapsing the kimchi premium, a price difference between Bitcoin in Asia and the rest of the world, making him a billionaire and a legend[55].
Effective Altruism
Trained at Jane Street, a high-frequency trading shop, SBF embraced effective altruism (EA), a philosophy combining moral and financial logic to maximize good[55]. Inspired by EA founder Will MacAskill, SBF aimed to earn for charity[55].
The Reality
Behind the scenes, FTX was a complicated corporate structure which allowed client assets to be used as collateral in risky trade deals conducted by Alameda Research.
A large portion of the assets of FTX were held in FTT, a token created by FTX. Rival exchange Binance held a large amount of FTT.
What Happened
FTX collapsed over a 10-day period in November 2022 before officially declaring bankruptcy.
Date | Event | Description |
---|---|---|
May 2019 | FTX Founding | FTX was co-founded by Massachusetts Institute of Technology graduates Sam Bankman-Fried and Gary Wang in May 2019[52]. Bankman-Fried has a background in ETFs trading, while Wang’s time before FTX was spent working at Google[52]. |
October 2021 | FTX Funds Raised | By October 2021, FTX raised $25 billion in valuation through investments from Temasek, an investment firm owned by the Singaporean government, among others[52]. |
January 31st, 2022 7:42:00 AM MST | FTX Funds Raised | FTX Trading, already a major cryptocurrency exchange at this point, raised another $400 million in its third funding round in six months, increasing its valuation to $32 billion[52]. The funding round saw participation from existing investors, including Temasak, Paradigm, the Ontario Teachers’ Pension Plan Board, and NEA[52]. This came shortly after FTX U.S., the independently operated sister exchange, also raised $400 million[52]. FTX CEO Sam Bankman-Fried stated that this funding will support expansion into new regions and enhance their offerings[52]. FTX has grown rapidly since its launch two years ago, with a 60% increase in its user base and an average daily trading volume of approximately $14 billion[52]. Despite the recent crypto market downturn, Bankman-Fried expressed optimism, suggesting that the selloff isn't indicative of a long-term "crypto winter." Prior to the funding, Sam Bankman-Fried was already worth an estimated $17.1b, the world's richest 29 year old[53]. |
September 22nd, 2022 10:46:15 AM MDT | Sequoia Capital Puff Piece | Sequoia Capital publishes a favourable article about Sam Bankman Fried. It talks about how he collapsed the kimchi premium, a price difference between Bitcoin in Asia and the rest of the world, making him a billionaire and a legend[55]. Trained at Jane Street, a high-frequency trading shop, SBF is described as embracing effective altruism (EA), a philosophy combining moral and financial logic to maximize good[55]. Inspired by EA founder Will MacAskill, SBF is described as aiming to earn his fortune for charity[55]. SBF's journey led to the creation of FTX, a crypto exchange valued at $32 billion[55]. FTX became a beacon for legitimacy in crypto, attracting Sequoia Capital's attention[55]. SBF's risk-neutral approach and commitment to ethical impact set him on a path to reshape the crypto landscape and philanthropy[55]. |
November 2nd, 2022 | CoinDesk Report Catalyst | CoinDesk publishes a report which ultimately would serve as a catalyst for the collapse. "The catalyst was a Nov. 2 scoop by crypto news site CoinDesk that revealed that Alameda Research, the quantitative trading firm also run by Bankman-Fried, held a position valued at $5 billion in FTT, the native token of FTX. The report disclosed that Alameda’s investment foundation was also in FTT, the token that its sister company had invented, not a fiat currency or other cryptocurrency. That prompted concern across the cryptocurrency industry regarding Bankman-Fried’s companies’ undisclosed leverage and solvency." |
November 6th, 2022 11:00:00 AM MST | FTT Token Sale | Binance sells all FTT tokens which they held. |
November 7th, 2022 | Bailout Sought | FTX announces liquidity crisis, seeks bailout from venture capitalists, then Binance. |
November 8th, 2022 | Binance Buy Out | Binance says it will buy FTX’s non-U.S. business, pending due diligence. (?TBC) |
November 8th, 2022 12:33:56 PM MST | Ignacio de Gregorio Article | In a Medium article, Ignacio de Gregorio discusses the collapse of FTX and questions are raised about the repeated collapses in the Crypto market. The author reflects on the aftermath of a previous financial crash in May, triggered by the Terra / Luna collapse, which led to significant losses for investors. FTX, once a thriving Crypto empire, is now facing a catastrophic downfall, with its value plummeting by $15.6 billion. The article emphasizes the unprecedented nature of such collapses and prompts a critical examination of the issues within the Crypto industry[1]. |
November 9th, 2022 7:30:00 AM MST | CZ Shares Internal Update | CZ publishes a tweet which is being sent through the company[23]. |
November 9th, 2022 | Binance Walks Away | Binance walks away from FTX acquisition after conducting due diligence. |
November 10th, 2022 9:48:00 AM MST | Python Script For Extracting Records | Twitter user Shane Barratt publishes a Python script for extracting tax information from the Binance platform, and advises users to pull their data quickly while they still can[56]. |
November 10th, 2022 | Bahamas Asset Freeze | The Bahamas freeze assets of FTX’s subsidiary there; Bankman-Fried admits non-U.S. businesses’ liquidity crisis, says affiliate Alameda Research to wind down. |
November 10th, 2022 2:46:01 PM MST | Bahamian Resident
Withdrawals |
Blockworks reports that FTX.com has "temporarily" halted withdrawals due to a solvency crisis and the search for new funding[57]. Although most FTX customers are still unable to withdraw their funds, withdrawal activity totaling up to $7.2 million was observed[57]. FTX confirmed via Twitter that individuals within the Bahamas were allowed to withdraw funds[57]. FTX stated that it is actively working on enabling withdrawals for users worldwide[57]. A former FTX staff member, Zane Tackett, revealed on Twitter that he had a significant portion of his funds stored on the exchange[57]. FTX allowed Tron-based tokens such as TRX, BTT, JST, SUN, and HT to be swapped from FTX to external wallets at a 1:1 ratio, thanks to an agreement with Tron[57]. This led to Tron (TRX) on FTX trading at approximately seven times the market price elsewhere[57]. FTX US, a separate entity, announced that trading "may be halted" in a few days but assured users that withdrawals will remain open[57]. Users were advised to close their positions as needed and await further updates[57]. |
November 11th, 2022 4:37:24 AM MST | Sequioa Capital Article Removed | Sequioa Capital removes the article they posted that portrays Sam Bankman Fried favourably[58]. |
November 11th, 2022 7:14:00 AM MST | CEO Step Down | Bankman-Fried steps down as FTX CEO, is replaced by a court-appointed CEO with restructuring experience[52]. FTX files for Chapter 11 bankruptcy protection[52]. All of this is announced in a tweet[59]. |
November 11th, 2022 2:14:45 PM MST | Bankrupt But Trading Still Operating | Blockworks reports that despite filing for bankruptcy, FTX is continuing to allow crypto trading on its platform[60]. Customers are unable to withdraw funds, but trading on FTX's website and mobile app is functioning normally[60]. There has been over $200 million in spot bitcoin trading volume and over $300 million in volume for bitcoin and ether perpetual contracts on FTX, although volumes have been declining since its bankruptcy filings, and popular crypto trackers have removed FTX from their volume rankings[60]. A regulatory loophole in the Bahamas allows local accounts to still make withdrawals. Using the account tools provided by FTX is also easier for users to maintain their tax records[60]. |
November 12th, 2022 8:15:51 AM MST | Reddit Discussion on Hacker Identity | A Reddit thread[61] discusses hacked funds being transferred through Kraken and references a Twitter thread (which appears to have since been deleted)[62][63]. The Reddit community discusses the unfolding situation, expressing a mix of humor and skepticism[61]. Some users propose casting ideas for a potential Netflix movie based on the events, while others comment on the apparent lack of skill or experience exhibited by the hacker[61]. Speculations and jokes about the identity of the hacker, including references to FTX's CEO Sam Bankman-Fried, are prevalent[61]. |
November 12th, 2022 | FTX Assets Hacked | FTX reports an alleged hack, suspected to be up to $477 million, and moves its digital assets to it's own internal cold storage for security reasons. |
November 14th, 2022 6:09:46 AM MST | Exodus Reddit Thread | A Reddit thread discusses the recent mass movement of Bitcoin to self-custodied wallets, as indicated by a surge in withdrawals across several platforms, is being viewed as a bullish sign by the crypto community[2]. This shift away from exchanges is seen as a positive development, reflecting a growing preference for secure, long-term storage of Bitcoin[2]. The move to cold storage is often associated with a commitment to hodling, and the reduction of Bitcoin available on exchanges could contribute to an increase in its value[2]. However, some express concerns about potential increased volatility due to reduced liquidity on exchanges, and there are debates about the overall impact on the market[2]. The trend is attributed to a combination of factors, including recent events, security concerns, and a broader desire for more control over one's assets[2]. |
November 17th, 2022 | Bankruptcy Filing For FTX | FTX completes a bankruptcy filing, along with 101 included debtors[52][64]. |
November 18th, 2022 | Bahamas Asset Control | Bahamian authorities take control of FTX assets held there. |
November 20th, 2022 12:01:00 PM MST | Breaking Down Fund Laundering | Mario Nawfal provides a breakdown of the various techniques the hacker has been using to move the funds stolen from FTX[65]. The scammer is wrapping their ETH to RenBTC, which can then be withdrawn to the bitcoin blockchain[65]. |
November 21st, 2022 9:46:00 AM MST | Hacked ETH Funds On The Move | ETH wallets are reportedly continuing to move with hacked funds[66]. The REN bridge is shut down by limiting the liquidity available for the hacker[66]. |
December 1st, 2022 10:03:00 AM MST | Meme.com On Apology | Meme.com publishes a video parody articulating how "sorry" Sam Bankman Fried is[67]. |
December 6th, 2022 4:30:00 AM MST | NBC News Report Published | NBC News reports that senator Elizabeth Warren, along with two Republican senators, have sent a request for information to Silvergate Bank regarding its relationship with FTX and entities associated with Sam Bankman-Fried, the founder of FTX[68]. The request is related to FTX's recent collapse and allegations that customer funds were secretly transferred to Alameda Research[68]. The letter raises concerns about Silvergate's role in these activities and questions the bank's vigilance in monitoring suspicious financial activities in client accounts, as required by banking regulations[68]. Silvergate has until December 19 to respond to the senators' inquiry[68]. |
December 9th, 2022 6:15:00 AM MST | Bloomberg Silvergate Article Published | Bloomberg publishes an article on Silvergate[69]. "Silvergate Capital Corp. was dealing with the same problem many small US banks face: How do you differentiate yourself when larger competitors do everything you do, only better[69]? The solution the bank found was to focus on a sector other banks didn’t want to touch: cryptocurrency[69]. Over the course of a decade, the La Jolla, California-based company transformed itself from a bank catering to small businesses into a publicly traded firm known for providing banking services to major crypto clients such as Coinbase Global Inc. and Gemini Trust Co. — as well as Sam Bankman-Fried’s FTX and Alameda Research."[69] |
December 9th, 2022 2:45:10 PM MST | Patrick Boyle Video | Popular YouTube artist Patrick Boyle includes Sam Bankman-Fried as an example of a con man in his video "Why We Trust Fraudsters!"[70]. The video also details more about the reactions of different companies who had invested or participated in the FTX scandal[70]. |
December 12th, 2022 | Extradition | Bankman-Fried is arrested by Bahamian authorities and extradited to the U.S. |
December 13th, 2022 2:53:00 PM MST | Bail Denied | Sam Bankman-Fried is reportedly denied bail[71]. |
December 16th, 2022 10:12:52 AM MST | Silvergate Class Action Lawsuit Reported | Decrypt reports that Silvergate Bank, its holding company Silvergate Capital Corporation, and CEO Alan Lane are facing a class action lawsuit in the U.S. District Court for the Southern District of California[72]. The lawsuit alleges that they aided and abetted fraudulent activities of the now-bankrupt crypto exchange FTX. Plaintiffs argue that Silvergate directly participated in the commingling of funds, improper transfers, and lending out of customer money[72]. The lawsuit also claims that Silvergate made misleading statements about its platform's controls to detect money laundering[72]. This lawsuit follows Silvergate's downgrade by Morgan Stanley and a letter from a group of senators, including Elizabeth Warren, seeking information about Silvergate's relationship with FTX and the Bankman-Fried entities[72]. The deadline of December 19 for Silvergate to respond to the lawmakers has still not passed yet[72]. |
December 17th, 2022 5:12:23 AM MST | Aid And Abetment Lawsuit | A class-action lawsuit has been filed against Silvergate Bank, Silvergate Capital Corporation, and Silvergate CEO Alan Lane regarding their relations with the now-bankrupt FTX and Alameda Research[73]. The plaintiff claimed that he invested in FTX based on promises from the exchange that his digital assets would be securely stored and could be withdrawn in cash or exchanged for other assets[74]. The investor entrusted FTX with their cryptocurrency savings, which led to significant potential losses due to FTX's recent crisis[73]. The lawsuit accuses Silvergate of "aiding and abetting" the fraud at FTX[74]. The lawsuit alleges that Silvergate had a clear view of the fraud at FTX but failed in its "duty of due diligence" and violated its know-your-customer and anti-money laundering duties[74]. Silvergate is alleged to have directly assisted and encouraged FTX's fraud and breaches of fiduciary duty[73]. The lawsuit accuses Silvergate of being liable for its role in furthering FTX's investment fraud and fiduciary duty breaches and demands that Silvergate make the investors whole[73]. Additionally, former basketball star Shaquille O'Neal revealed that he was just a paid spokesperson for FTX and did not believe in cryptocurrency, as he was named in a class action lawsuit against celebrities who promoted the cryptocurrency exchange[74]. Articles also mentions inquiries from senators Elizabeth Warren, John Kennedy, and Roger Marshall seeking information about the role of Silvergate in the FTX collapse and its relationship with FTX[73]. Silvergate still has until December 19 to respond to the lawmakers' inquiries[73]. Silvergate's shares have declined significantly following the FTX collapse[74]. |
December 19th, 2022 10:11:00 AM MST | Robbins LLP Deadline Reminder | Robbins LLP has reminded investors of the lead plaintiff deadline in the class action against Silvergate Capital Corporation. The lawsuit pertains to alleged violations of the Securities Exchange Act of 1934, specifically in connection with Silvergate's conduct between November 9, 2021, and November 17, 2022. The complaint accuses Silvergate of making false and misleading statements about its business prospects. Revelations about subpoenaed Silvergate bank records allegedly showing $425 million in transfers to South American money launderers prompted a significant drop in the company's stock price. Shareholders have until February 6, 2023, to file papers if they wish to participate as a lead plaintiff in the class action[75]. |
December 20th, 2022 2:24:03 AM MST | The Wall Street Journal | The Wall Street Journal reports that Silvergate Capital Corp. is currently reviewing transactions between FTX crypto exchange and Alameda Research, following the collapse of FTX. This scrutiny comes as regulators and prosecutors charged Sam Bankman-Fried, the founder of FTX, with fraud, alleging he used customer funds from FTX to support Alameda trades and his own extravagant lifestyle. Bankman-Fried has acknowledged directing FTX customers to deposit funds into Alameda accounts but denies committing fraud. The transactions between FTX and Alameda have become a central focus for investigations into the FTX collapse.[76] |
December 21st, 2022 3:00:14 PM MST | Nepotism Denial | CryptoSlate reports that Silvergate CEO Alan Lane has denied allegations of nepotism before U.S. senators. The denial comes after Silvergate Capital underwent executive staffing changes in November, which involved Lane's son-in-law, Tyler Pearson, who was reassigned to a deputy role. This sparked questions about nepotism, given that Silvergate employs several of Lane's immediate family members, including his son and another son-in-law. While the change was linked to corporate restructuring and not performance issues, it raised concerns regarding Silvergate's connections with the bankrupt crypto exchange FTX. U.S. senators, including crypto critic Elizabeth Warren, have been seeking answers from Silvergate on these matters[77]. |
December 21st, 2022 3:20:00 PM MST | The Wall Street Journal | "Silvergate Capital Corp. Chief Executive Alan Lane told three U.S. senators there was no performance issue with his son-in-law and former chief risk officer, whose job was changed just as the crypto world started imploding last month."[78] |
December 21st, 2022 8:51:00 PM MST | Coffeezilla Game Over | Coffeezilla tweets an image of Sam Bankman Fried being arrested with the caption "game over for the biggest fraudster of our generation"[79]. |
December 22nd, 2022 5:45:00 AM MST | Lawsuit Press Release Published | Law firm Levi & Korsinsky, LLP publishes a press release notifying investors in Silvergate Capital Corporation (NYSE: SI) of a class action securities lawsuit. The lawsuit is seeking to recover losses on behalf of Silvergate investors who were allegedly affected by securities fraud between November 9, 2021, and November 17, 2022. The complaint alleges that the defendants made false statements and/or concealed information regarding money laundering controls, customer engagement in money laundering exceeding $425 million, regulatory scrutiny, and misleading statements about the company's business. Investors who suffered losses have until February 6, 2023, to request appointment as lead plaintiff. There is no cost to participate, and Levi & Korsinsky has a track record of winning high-stakes cases in securities litigation[80]. |
December 22nd, 2022 6:59:15 AM MST | Premarket Movement | InvestorsObservers reports that the Silvergate stock is trading lower by 3.51% in pre-market trading[81]. |
December 22nd, 2022 | Bail Bond Release | Bankman-Fried is released on a $250 million bond, the largest in history, by a federal judge. |
January 11th, 2023 9:54:55 PM MST | BBC Reports $5 Billion Recovered | BBC News reports that FTX has recovered over $5 billion in assets, according to an attorney for the firm[82]. However, it was noted in a US bankruptcy court that the extent of losses to customers is still unknown[82]. |
March 28th, 2023 10:36:58 AM MDT | Chinese Bribery Charge | The Techee reports that prosecutors unveiled a 13th charge against FTX founder Sam Bankman-Fried, accusing him of bribing Chinese officials with $40 million in cryptocurrency to release frozen assets[83]. Bankman-Fried, facing charges under the Foreign Corrupt Practices Act, awaits arraignment on the new charge[83]. The case against him appears substantial, especially with former colleagues cooperating with authorities, while FTX's bankruptcy revealed a scheme that allegedly defrauded customers and investors of billions[83]. Bankman-Fried's fraud lawsuits from the SEC and CFTC are also mentioned[83]. The article is also shared on Reddit, where users question the jurisdiction of the US in this case[84]. |
June 5th, 2023 11:00:00 AM MDT | Forbes Key Facts Article | Forbes publishes a summary of key facts about the FTX situation. FTX Trading Ltd., once a major cryptocurrency exchange specializing in crypto derivatives and valued at around $40 billion, faced a dramatic downfall and legal troubles. Co-founded by . However, FTX's collapse began with the resignation of Bankman-Fried as CEO and the company's bankruptcy filing in November 2022, which included 101 debtors in the Chapter 11 filing. A major contributor to the downfall was the liquidity crisis, driven by the movement of customer funds from FTX to Alameda Research Company, which held assets primarily in the FTT token. This, combined with announcements by other cryptocurrency leaders like Changpeng "CZ" Zhao to sell their stakes in FTT, led to increased customer withdrawals and the ultimate bankruptcy of FTX. Subsequently, Bankman-Fried was arrested and faced a series of criminal charges, including wire fraud, money laundering, commodities fraud, securities fraud, and more. He has requested the dismissal of some of these charges[52]. |
September 11th, 2023 5:00:06 PM MDT | Crypto Liquidation | Preparing for liquidation of assets held by FTX. |
September 13th, 2023 11:41:00 AM MDT | FTX Able To Use Assets | CoinDesk reports that a judge in the U.S. Bankruptcy Court for the District of Delaware has ruled that crypto exchange FTX can sell, invest, stake, and hedge its crypto holdings to pay back creditors. The judge approved the motion and overruled objections, allowing FTX to use its crypto assets worth over $3.4 billion for these purposes. FTX had submitted a request for permission to engage in these activities in August, with the goal of limiting potential downside risk and generating low-risk returns on idle digital assets. The exchange also sought to hire Mike Novogratz of Galaxy Digital as an adviser. FTX recently disclosed holdings of $1.16 billion in Solana (SOL) and $560 million in Bitcoin (BTC), along with lesser-known illiquid tokens[85][86]. |
September 14th, 2023 1:49:37 AM MDT | Crypto News Flash Article | Crypto News Flash reports that FTX Exchange has now gained approval from the U.S. Bankruptcy Court to sell its cryptocurrency assets, which are valued at around $3.4 billion. This move is aimed at repaying its creditors and has garnered significant attention in the crypto market. The court's decision allows FTX to systematically sell, hedge, and stake its digital assets. While there have been concerns about potential market volatility (FUD) due to FTX's decision to liquidate its crypto assets, the current market appears stable, with Bitcoin showing a 0.75% increase in the past 24 hours, trading at $26,129.05[86]. |
September 14th, 2023 7:44:52 AM MDT | Traders Impacted By FTX Liquidation | Video mentioning FTX liquidation and impact on the market[87]. |
Technical Details
FTX's collapse began with the resignation of Bankman-Fried as CEO and the company's bankruptcy filing in November 2022, which included 101 debtors in the Chapter 11 filing[52]. A major contributor to the downfall was the liquidity crisis, driven by the movement of customer funds from FTX to Alameda Research Company, which held assets primarily in the FTT token[52]. This, combined with announcements by other cryptocurrency leaders like Changpeng "CZ" Zhao to sell their stakes in FTT, led to increased customer withdrawals and the ultimate bankruptcy of FTX[52].
FTX was a complicated mix of corporate entities.
Corporate Entities
Alameda Trading
Hacked Funds
Total Amount Lost
The total amount lost has been estimated at $8,000,000,000 USD.
Immediate Reactions
The FTX platform remained online for a significant period of time after bankruptcy, allowing users to trade and gather tax information. Some users could even withdraw, if they were based in the Bahamas, using Tron tokens, or using the FTX US platform, which did not declare bankruptcy at the same time.
Platform Still Online During Bankruptcy
During a short period after filing for bankruptcy, FTX continued to allow crypto trading on its platform[60]. Customers were unable to withdraw funds, but trading on FTX's website and mobile app is functioning normally[60]. There were over $200 million in spot bitcoin trading volume and over $300 million in volume for bitcoin and ether perpetual contracts on FTX[60].
FTX's volumes have been declining since its bankruptcy filings[60]. While popular crypto trackers have removed FTX from their volume rankings, the exchange's markets remain operational[60]. This raises questions about why users would continue trading on an exchange when they can't withdraw their assets[60].
One reason for keeping the website and user accounts accessible is to allow customers to access their trading records, which are necessary for tax reporting and potential asset recovery processes in bankruptcy[56][60]. While this could still be done if the website is shut down, using the account tools provided by FTX makes it easier for users to maintain their records[60].
Withdrawals For Bahama User Accounts
In the period following the bankruptcy, many Bahama-based user accounts remained able to withdraw funds due to a regulatory loophole[60]. Although most FTX customers are still unable to withdraw their funds, limited withdrawal activity, totaling up to $7.2 million, was observed[57].
FTX confirmed via Twitter that individuals within the Bahamas were allowed to withdraw funds, indicating a potential prioritization of employees or insiders with verified local Bahamas accounts[57]. A former FTX staff member, Zane Tackett, revealed on Twitter that he had a significant portion of his funds stored on the exchange[57]. FTX stated that it is actively working on enabling withdrawals for users worldwide[57].
Users were taking advantage of this by using FTX's NFT marketplace to set up self-dealing auctions of low-value NFTs and then withdraw the proceeds as USDT stablecoins through Bahamas-based user accounts[60]. NFTs with no utility reportedly saw significant sales[60].
Withdrawals For Tron-Based Tokens
FTX allowed holders of Tron-based tokens such as TRX, BTT, JST, SUN, and HT to swap assets from FTX to external wallets at a 1:1 ratio, thanks to an agreement with Tron[57].
This led to a situation where Tron (TRX) on FTX was trading at approximately seven times the market price elsewhere[57].
Withdrawals Within FTX US
Shortly after FTX went bankrupt, FTX US, which is a separate entity, announced that trading "may be halted" in a few days but assured users that withdrawals will remain open[57]. Users were advised to close their positions as needed and await further updates[57].
Reactions On Twitter
Fail to understand trying to scapegoat CZ for everything. Would they rather FTX/Alameda continued operating the house of cards only for the inevitable fallout to be 10x worse? It's like pinning the Luna fiasco on everyone who cautioned about it
Sets very dangerous precedents.
for those wondering …
any money you have on FTX is pretty much lost
dark day in crypto, we simply pray for better times
love you all
gn
Attempted Acquisition By Binance
CZ published a notice which was shared internally during the acquisition period.
Binancians,
Given the events that transpired over the last couple of days. I want to reiterate a few points.
One, we did not master plan this or anything related to it. It was less than 24 hrs ago that SBF called me. And before that, I had very little knowledge of the internal state of things at FTX. I could do some mental calculations with our revenues to guess theirs, but it would never be very accurate. I was surprised when he wanted to talk. My first reaction was, he wants to do an OTC deal... But here we are.
Two, as the due diligence for the deal is on-going, I want to remind everyone: DO NOT trade FTT tokens. If you have a bag, you have a bag. DO NOT buy or sell. As soon as I finished the call with SBF yesterday, I asked our team to stop selling as an organization. Yes, we have a bag. But that's ok. More importantly, we need to hold ourselves to a higher standard than even in banks.
Three, obviously, do not comment on the deal, publicly or internally. If you are not directly involved, don't ask. We have a good team handling it. Things will play out.
Four, FTX going down is not good for anyone in the industry. Do not view it as a "win for us". User confidence is severely shaken. Regulators will scrutinize exchanges even more. Licenses around the globe will be harder to get. And people now think we are the biggest and will attack us more. But that's OK, we are used to being open and leaning into headwinds. In fact, we embrace scrutiny. We must significantly increase our transparency, proof-of-reserves, insurance funds, etc. A lot more to come in this area. We have a lot of tough work ahead of us. Not to mention prices swinging wildly.
Five, speaking of prices. As I have said many times over the years, ignore the prices. Let's keep our heads down and focus on building products people use. It has always worked over the years, and today is obviously no exception.
Lastly, I want to say I am really proud of each and every one of you, for all your hard work and as a team. Thank you! We still have many challenges ahead of us, let's continue to push ahead and help increase the freedom of money all around the world, steadily and consistently.
CZ
Ultimate Outcome
FTX founder Sam Bankman-Fried, known as SBF, ultimately faced multiple indictments and charges related to fraud and bribery[90]. Following the collapse of FTX due to fraud and theft, Bankman-Fried was indicted in December 2022 and extradited to the United States[90]. While three former FTX executives have pled guilty and agreed to cooperate with prosecutors, Bankman-Fried, considered the alleged kingpin, has maintained his innocence[90]. In February 2023, he faced additional criminal counts, totaling twelve, including conspiracy to commit bank fraud and money laundering[90].
Former FTX CEO Sam Bankman-Fried is facing accusations of orchestrating a major fraud, but he has pleaded not guilty. Most of FTX's customers and investors who are facing losses have not been named in the hearings, but high-profile individuals like American football star Tom Brady, his former wife Giselle Bündchen, and New England Patriots owner Robert Kraft were mentioned in court filings. Bankman-Fried has been accused of misappropriating customer funds to pay debts and make investments[82].
Sam Bankman-Fried, the former crypto billionaire at the center of this scandal, is now facing the largest-ever pretrial bond, set at $250 million. The conditions for his release include wearing an electronic monitoring bracelet, undergoing mental health counseling, and restricting his travel to certain U.S. districts.
Bankman-Fried, who voluntarily returned to the U.S. and has significantly reduced financial assets, was described by prosecutors as the mastermind behind "a fraud of epic proportions." Despite once leading a $32 billion crypto empire, he claimed to have only $100,000 left. Comparatively, his bail amount far exceeds those set for other high-profile white-collar defendants like Bernie Madoff, Jeff Skilling, and Elizabeth Holmes.
Bankman-Fried was arrested and faced a series of criminal charges, including wire fraud, money laundering, commodities fraud, securities fraud, and more[52]. He has requested the dismissal of some of these charges[52].
"In addition to the $250 million package, which prosecutors called “the largest-ever pretrial bond,” the former crypto billionaire would also be required to wear an electronic monitoring bracelet, submit to mental health counseling and restrict himself [to] travel within and between the Northern District of California and the Southern & Eastern Districts of New York.
Judge Gabriel Gorenstein said Bankman-Fried would require “strict” supervision following his release to his parents’ home in California.
His parents, both Stanford Law professors, were present in the courtroom. Bankman-Fried was flanked by two U.S. marshals, dressed in a blue suit and brown shoes. Bankman-Fried entered in ankle shackles as well, but traded them for his ankle monitor while in the courtroom."
"Bankman-Fried was the heart of “a fraud of epic proportions,” Assistant U.S. Attorney Nicolas Roos told the court. But he voluntarily returned to the United States, has no history of flight and has significantly reduced financial assets, Roos said.
Bankman-Fried had previously claimed that he was down to a mere $100,000, a steep fall from grace for a man who was once at the head of a $32 billion crypto empire."
"Bankman-Fried’s bail dwarfs other federal white-collar bonds. Bernie Madoff posted a $10 million bond while awaiting trial on his multibillion-dollar Ponzi scheme. Jeff Skilling, former Enron CEO, posted a $5 million bond, while Elizabeth Holmes, Theranos founder, posted a scant $500,000."
Silvergate Class Action Lawsuit
The CryptoTimes report that a class-action lawsuit had been filed against Silvergate Bank, Silvergate Capital Corporation, and Silvergate CEO Alan Lane regarding their relations with the now-bankrupt FTX and Alameda Research. The lawsuit, filed by an investor, alleges that Silvergate directly assisted and encouraged FTX's fraud and breaches of fiduciary duty. The investor entrusted FTX with their cryptocurrency savings, which became uncertain and led to significant losses due to FTX's recent crisis. The lawsuit accuses Silvergate of being liable for its role in furthering FTX's investment fraud and fiduciary duty breaches and demands that Silvergate make the investors whole. Earlier, Senators Elizabeth Warren, John Kennedy, and Roger Marshall had also written to Silvergate, seeking information about its role in the FTX collapse and its relationship with FTX. Silvergate has until December 19 to respond to the lawmakers' inquiries[73]. CryptoSaurus reports that Silvergate, a leading crypto bank, is facing a class action lawsuit filed by investors affected by the collapse of FTX. The lawsuit accuses Silvergate of "aiding and abetting" the fraud at FTX. The plaintiff claimed that he invested in FTX based on promises from the exchange that his digital assets would be securely stored and could be withdrawn in cash or exchanged for other assets. The lawsuit alleges that Silvergate had a clear view of the fraud at FTX but failed in its "duty of due diligence" and violated its know-your-customer and anti-money laundering duties. Silvergate's shares have declined significantly following the FTX collapse. Additionally, former basketball star Shaquille O'Neal revealed that he was just a paid spokesperson for FTX and did not believe in cryptocurrency, as he was named in a class action lawsuit against celebrities who promoted the cryptocurrency exchange[74].
Silvergate Bank, its holding company Silvergate Capital Corporation, and CEO Alan Lane are facing a class action lawsuit in the U.S. District Court for the Southern District of California. The lawsuit alleges that they aided and abetted fraudulent activities of the now-bankrupt crypto exchange FTX. Plaintiffs argue that Silvergate directly participated in the commingling of funds, improper transfers, and lending out of customer money. The lawsuit also claims that Silvergate made misleading statements about its platform's controls to detect money laundering. This lawsuit follows Silvergate's downgrade by Morgan Stanley and a letter from a group of senators, including Elizabeth Warren, seeking information about Silvergate's relationship with FTX and the Bankman-Fried entities. Silvergate has until December 19 to respond to the lawmakers[72].[81]
Court Trial And Sentencing
Sam Bankman Fried was ultimately tried and found guilty of seven different crimes. The trial consisted of a large number of witnesses on the prosecution side, with Sam Bankman Fried only able to produce one witness along with himself. The central attempt at justifying the events was by trying to demonstrate that enough customers had agreed to a terms of service allowing for the usage of their funds in margin trading. After a 3 hour deliberation, the jury found Sam Bankman Fried guilty on all counts.
Total Amount Recovered
FTX's digital treasury includes significant holdings, such as $1.16 billion in Solana (SOL) and $560 million in Bitcoin (BTC), among other tokens[86].
The total amount recovered is still being determined. A recent court ruling has allowed FTX to start selling and staking assets in order to repay creditors[85].
CryptoSlate reports that Silvergate CEO Alan Lane has denied allegations of nepotism before U.S. senators. The denial comes after Silvergate Capital underwent executive staffing changes in November, which involved Lane's son-in-law, Tyler Pearson, who was reassigned to a deputy role. This sparked questions about nepotism, given that Silvergate employs several of Lane's immediate family members, including his son and another son-in-law. While the change was linked to corporate restructuring and not performance issues, it raised concerns regarding Silvergate's connections with the bankrupt crypto exchange FTX. U.S. senators, including crypto critic Elizabeth Warren, have been seeking answers from Silvergate on these matters[77].
Ongoing Developments
The sale of assets is still ongoing[85].
Bankruptcy Liquidation Of Exchange Assets
FTX Exchange has gained approval from the U.S. Bankruptcy Court to sell its cryptocurrency assets, which are valued at around $3.4 billion. This move is aimed at repaying its creditors and has garnered significant attention in the crypto market. The court's decision allows FTX to systematically sell, hedge, and stake its digital assets.[86]
FTX had previously outlined its strategy, which includes hedging cryptocurrencies to protect against market fluctuations before selling assets like Bitcoin or Ether. They also plan to stake certain digital currencies to generate returns on dormant assets.[86]
The ownership of these digital assets was a point of contention during the court discussions. FTX clarified that the assets in question belong to the debtors and cannot be traced back to individual stakeholders.[86]
While there have been concerns about potential market volatility (FUD) due to FTX's decision to liquidate its crypto assets, the current market appears stable, with Bitcoin showing a 0.75% increase in the past 24 hours, trading at $26,129.05.[86]
Liquidation Impacts On Market
Individual Prevention Policies
The FTX platform did not back customer funds for the majority of it's existence. No audits nor proof of backing was made available, and customers continued to blindly trust FTX without any confirmation that their funds were backed right up into the final collapse. Customer assets were freely used as collateral and to buy up other companies, a position which proved extremely risky in the final market downturn. Individuals can avoid a similar fate by self custodying their assets or choosing only to use platforms with proven backing of funds.
When using any third party custodial platform (such as for trading), it is important to verify that the platform has a full backing of all assets, and that assets have been secured in a proper multi-signature wallet held by several trusted and trained individuals. If this can't be validated, then users should avoid using that platform. Unfortunately, most centralized platforms today still do not provide the level of transparency and third party validation which would be necessary to ensure that assets have been kept secure and properly backed. Therefore, the most effective strategy at present remains to learn proper self custody practices and avoid using any third party custodial platforms whenever possible.
Store the majority of funds offline. By offline, it means that the private key and/or seed phrase is exclusively held by you and not connected to any networked device. Examples of offline storage include paper wallets (seed phrase or key written down and deleted from all electronic media), hardware wallets, steel wallet devices, etc...
For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.
Platform Prevention Policies
As in most cases of funds going missing from large platforms, the problems started long before the final collapse and reveal. Funds disappeared over a long period of time, with extremely limited accountability or visibility into the backing of funds. Having such visibility into the backing would have heavily limited the size of FTX and discouraged further usage of client funds.
In addition, while FTX had a wide diversity of corporations, decisions regarding the usage of funds tended to be made by Sam Bankman Fried himself. There were no alternative decision makers who had any degree of ability to put up reasonable resistance, much less a multi-signature wallet with keys held by separate individuals. Such a system where one person is in charge of all decisions is obviously vulnerable to full exploitation by that person.
All aspects of any platform should undergo a regular validation/inspection by experts. This validation should include a security audit of any smart contracts, reporting any risks to the backing (of any customer assets, ensuring treasuries or minting functions are properly secured under the control of a multi-signature wallet, and finding any inadequacies in the level of training or integrity of the team. The recommended interval is twice prior to launch or significant system upgrade, once after 3 months, and every 6 months thereafter. It is recommended that the third party performing the inspection not be repeated within a 14 month period.
All wallets, minting functions, and critical infrastructure should be implemented with a multi-signature requirement, with a recommended minimum of 3 signatures required. This means that making important changes or approving spending will require the keys held by at least 3 separate individuals within the organization to approve. The multi-signature should be implemented at the lowest layer possible, all key holders should have security training, and all key holders should be empowered and encouraged to exercise diligence.
Work with other industry platforms to set up a multi-signature wallet with private keys held separately by delegate signatories from seven prominent platforms and services within the industry. Establish requirements for contributions by all platforms and services, designed to be affordable for small platforms yet large enough to cover anticipated breach events. Any breach event can be brought forth by a member platform or a petition of 100 signatures for consideration by the delegate signatories. A vote of 4 or more delegate signatures is required to release any funds, which could partially or fully restore lost funds based on their assessment.
For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.
Regulatory Prevention Policies
As in most cases of funds going missing from large platforms, the problems started long before the final collapse and reveal. Funds disappeared over a long period of time, with extremely limited accountability or visibility into the backing of funds. Having such visibility into the backing would have heavily limited the size of FTX and discouraged further usage of client funds.
In addition, while FTX had a wide diversity of corporations, decisions regarding the usage of funds tended to be made by Sam Bankman Fried himself. There were no alternative decision makers who had any degree of ability to put up reasonable resistance, much less a multi-signature wallet with keys held by separate individuals. Such a system where one person is in charge of all decisions is obviously vulnerable to full exploitation by that person.
All platforms should undergo published security and risk assessments by independent third parties. Two assessments are required at founding or major upgrade, one after 3 months, and one every 6 months thereafter. The third parties must not repeat within the past 14 months. A risk assessment needs to include what assets back customer deposits and the risk of default from any third parties being lent to. The security assessment must include ensuring a proper multi-signature wallet, and that all signatories are properly trained. Assessments must be performed on social media, databases, and DNS security.
Set up a multi-signature wallet with private keys held separately by delegate signatories from seven prominent platforms and services within the industry. Establish requirements for contributions by all platforms and services within the country, designed to be affordable for small platforms yet large enough to cover anticipated breach events. Any breach event can be brought forth by a member platform or a petition of 100 signatures for consideration by the delegate signatories. A vote of 4 or more delegate signatures is required to release any funds, which could partially or fully restore lost funds based on their assessment.
For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.
References
- ↑ 1.0 1.1 Ignacio de Gregorio Noblejas - Binance FTX War Ends In Collapse - Medium (Nov 14, 2022)
- ↑ 2.0 2.1 2.2 2.3 2.4 2.5 The biggest exodus of Bitcoin ever to cold storage has begun.! Bullish sign. - Reddit (Nov 14, 2022)
- ↑ The Fall of FTX - Glassnode Insights (Nov 15, 2022)
- ↑ Former FTX CEO Sam Bankman-Fried loses Washington lobbyists - CNBC (Nov 17, 2022)
- ↑ There Are 225 Million Bitcoin Left on Exchanges - Reddit (Nov 24, 2022)
- ↑ Visualized: FTX's Leaked Balance Sheet - Visual Capitalist (Nov 29, 2022)
- ↑ Talking to Sam Bankman Fried - YouTube (Nov 30, 2022)
- ↑ I didn't ever try to commit fraud on anyone: Sam Bankman-Fried - YouTube (Nov 30, 2022)
- ↑ SBF Explains Losses! - YouTube (Dec 1, 2022)
- ↑ Sorry You’re Bankrupt - YouTube (Dec 1, 2022)
- ↑ FTX Disaster - 7 Unbelievable Bankruptcy Discoveries - YouTube (Dec 5, 2022)
- ↑ UK Treasury finalises plans for crypto regulation amid FTX downfall - Investment Week (Dec 9, 2022)
- ↑ You Got Robbed | FTX and BlockFI Crash - YouTube (Dec 11, 2022)
- ↑ Sam Bankman-Fried Applauded After Surreal Interview - Fully Crypto (Dec 12, 2022)
- ↑ Crypto 24/7 - Projects Benefited By FTX Collapse - Medium (Dec 15, 2022)
- ↑ Sam Bankman-Fried in 'Good Spirits' in Rat-Infested Prison - Decrypt (Dec 15, 2022)
- ↑ I Accidentally Got SBF To Admit to Fraud - YouTube (Dec 16, 2022)
- ↑ FTX Was (And Is) A Complete Mess - YouTube (Dec 18, 2022)
- ↑ FTX Founder Sam Bankman-Fried To Be Released On - Reddit (Dec 22, 2022)
- ↑ House Financial Services Committee holds a hearing to investigate FTX collapse — 12/13/22 - YouTube (Dec 24, 2022)
- ↑ Alameda Wallets Funnel Over $1.7 Million Via Crypto-Mixers Overnight - ZeroHedge (Dec 29, 2022)
- ↑ Sam Bankman-Fried Arrested Immediately After Saying He Wouldn't Be Arrested - Vice (Jan 11, 2023)
- ↑ 23.0 23.1 cz_Binance - "In the spirit of transparency, might as well share the actual note, sent to all Binance team globally a few hours ago." - Twitter (Sep 12, 2023)
- ↑ FTX: Collapsed crypto giant recovers over $5bn of assets - BBC News (Sep 12, 2023)
- ↑ FTX founder Sam Bankman-Fried to be released on $250 million bail, will live with his parents - CNBC (Sep 14, 2023)
- ↑ ‘No Cooperation’: How Sam Bankman-Fried Tried to Cling to FTX - The New York Times (Sep 14, 2023)
- ↑ CoffeeZilla - "" - Twitter (Sep 14, 2023)
- ↑ SBF - MASK OFF - Rekt (Sep 14, 2023)
- ↑ SCBgov_bs - "" - Twitter (Sep 14, 2023)
- ↑ Sam Bankman-Fried and Two Former FTX Associates - Reddit (Sep 14, 2023)
- ↑ US senators commit to advancing crypto bill despite FTX collapse - Coin Telegraph (Sep 14, 2023)
- ↑ Mark Yusko - Is SBF a 'pawn' and 'useful idiot' in a bigger plot to take down crypto industry? - YouTube (Sep 14, 2023)
- ↑ Serious FTX Rumors - Securing Your Crypto - Reddit (Sep 14, 2023)
- ↑ I Accidentally Interviewed SBF And He Hated It - YouTube (Sep 14, 2023)
- ↑ Rep. Tom Emmer - - Twitter (Sep 14, 2023)
- ↑ Autism Capital - "" - Twitter (Sep 14, 2023)
- ↑ Sam Bankman Fried Was Arrested - YouTube (Sep 14, 2023)
- ↑ - YouTube (Sep 14, 2023)
- ↑ Caroline Ellison (CEO of Alameda) has been found! - YouTube (Sep 14, 2023)
- ↑ Kevin O'Leary Just Shocked Everyone With His Response To The FTX Collapse - YouTube (Sep 14, 2023)
- ↑ SEC Charges Caroline Ellison and Gary Wang with Defrauding Investors in Crypto Asset Trading Platform FTX - Reddit (Sep 14, 2023)
- ↑ FTX Is About To Liquidate $3.4 BILLION Of Crypto! (Alts Are In Trouble) - YouTube (Sep 14, 2023)
- ↑ FTX gets court approval to sell crypto assets - Reuters (Sep 14, 2023)
- ↑ The Collapse of FTX: What Went Wrong With the Crypto Exchange? - Investopedia (Sep 14, 2023)
- ↑ https://thetechee.com/ftx-founder-sam-bankman-fried-indicted-by-u-s-authorities/
- ↑ https://www.reuters.com/business/how-did-bankman-fried-secure-250-mln-bail-2022-12-22/
- ↑ https://storage.courtlistener.com/recap/gov.uscourts.nysd.590940/gov.uscourts.nysd.590940.80.0.pdf
- ↑ https://s3.documentcloud.org/documents/23728310/sam-bankman-fried-5th-superseding-indictment.pdf
- ↑ https://storage.courtlistener.com/recap/gov.uscourts.nysd.590939/gov.uscourts.nysd.590939.113.0.pdf
- ↑ https://www.prnewswire.com/news-releases/ftx-debtors-file-schedules-and-statements-of-financial-affairs-with-bankruptcy-court-301773613.html
- ↑ https://forkast.news/ftx-failure-wake-up-call-security-mt-gox-karpeles/ (Accessed Aug 9, 2024)
- ↑ 52.00 52.01 52.02 52.03 52.04 52.05 52.06 52.07 52.08 52.09 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 What Happened To FTX? The Crypto Exchange Fund’s Collapse Explained. - Forbes (Sep 14, 2023)
- ↑ 53.0 53.1 53.2 Billionaire Bankman-Fried’s Crypto Exchange FTX Lands $32 Billion Valuation And $400 Million In New Funding - Forbes (Sep 14, 2023)
- ↑ FTX Logo - VectorSeek (Sep 14, 2023)
- ↑ 55.0 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 Sam Bankman-Fried Has a Savior Complex—And Maybe You Should Too - Sequoia Capital Archive October 27th, 2022 12:10:05 PM MDT (Feb 5, 2024)
- ↑ 56.0 56.1 Shane Barratt - "Given FTX site will likely go down soon, I made a (dependency-free) Python script to pull FTX fills/funding/borrow/lending/etc for taxes/accounting." - Twitter (Sep 19, 2023)
- ↑ 57.00 57.01 57.02 57.03 57.04 57.05 57.06 57.07 57.08 57.09 57.10 57.11 57.12 57.13 57.14 57.15 57.16 FTX Re-enables Withdrawals, But Only in Bahamas - Blockworks (Sep 19, 2023)
- ↑ Sequoia Capital has deleted the puff piece on SBF they published just 5 weeks ago, "Sam Bankman-Fried Has a Savior Complex—And Maybe You Should Too" painting him as a "legend" with principles of "Effective Altruism", which was that "he was going to get filthy rich, for charity’s sake." - Reddit (Feb 5, 2024)
- ↑ FTX Official - "Press Release" - Twitter (Nov 2, 2023)
- ↑ 60.00 60.01 60.02 60.03 60.04 60.05 60.06 60.07 60.08 60.09 60.10 60.11 60.12 60.13 60.14 FTX is Bankrupt But You Can Still Trade Crypto There - Blockworks (Sep 19, 2023)
- ↑ 61.0 61.1 61.2 61.3 FTX hacker identity found! apparently tried to offload funds to Kraken!! - Reddit (Mar 1, 2023)
- ↑ https://twitter.com/search?q=(from%3AMarioNawfal)%20until%3A2022-11-24%20since%3A2022-11-19%20BREAKING&src=typed_query&f=top (Dec 29, 2023)
- ↑ Nick Percoco Thread Deleted - Twitter (Dec 29, 2023)
- ↑ FTX bankruptcy filing - John J. Ray III - DocumentCloud (Nov 2, 2023)
- ↑ 65.0 65.1 65.2 Mario Nawfal - "Breaking down the scammer funds transfer. Some things sound fishy. Typing live during the show -Scammer is wrapping their ETH to RenBTC -Reason: Getting their ETH to a BTC blockchain Why? - BTC is more decentralized & less likely to get frozen + potentially easier to launder" - Twitter (Jan 2, 2024)
- ↑ 66.0 66.1 66.2 Mario Nawfal - "BREAKING: Remaining ETH moved to new wallets by the hacker. REN is not adding liquidity to their bridge, essentially shutting it down for the hacker:" - Twitter (Jan 2, 2024)
- ↑ MemeExplorers - "SBF is sorry" - Twitter (Nov 24, 2023)
- ↑ 68.0 68.1 68.2 68.3 Sen. Warren demands answers from Silvergate Bank about its business dealings with FTX - NBC News (Oct 16th, 2023)
- ↑ 69.0 69.1 69.2 69.3 An Obscure Bank Found Its Key to Success. Then FTX Collapsed - Bloomberg (Oct 16th, 2023)
- ↑ 70.0 70.1 Patrick Boyle - Why We Trust Fraudsters! - YouTube (Oct 12, 2023)
- ↑ unusual_whales - "BREAKING: SBF has been denied bail." - Twitter (Dec 13, 2022)
- ↑ 72.0 72.1 72.2 72.3 72.4 72.5 Crypto Bank Silvergate Hit With Class Action Lawsuit Over FTX, Alameda Dealings - Decrypt (Dec 22, 2022)
- ↑ 73.0 73.1 73.2 73.3 73.4 73.5 73.6 Lawsuit Filed Against Silvergate over FTX & Alameda Relations - CryptoTimes (Oct 16th, 2023)
- ↑ 74.0 74.1 74.2 74.3 74.4 74.5 Silvergate Faces ‘Aid and Abetment’ FTX Fraud Lawsuit - CryptoSaurus (Oct 16th, 2023)
- ↑ Robbins LLP Reminds Shareholders of Lead Plaintiff Deadline in the Class Action Against Silvergate Capital Corporation - BusinessWire (Oct 16th, 2023)
- ↑ Silvergate Reviewing FTX-Alameda Transactions - The Wall Street Journal (Oct 16, 2023)
- ↑ 77.0 77.1 Silvergate denies nepotism before U.S. senators - CryptoSlate (Oct 16th, 2023)
- ↑ Silvergate CEO Rebuts Short-Seller Theories On Son-in-Law’s Job Change - The Wall Street Journal (Oct 16th, 2023)
- ↑ Coffeezilla - "game over for the biggest fraudster of our generation." - Twitter (Nov 2, 2023)
- ↑ Levi & Korsinsky Notifies Silvergate Capital Corporation Investors of a Class Action Lawsuit and Upcoming Deadline - Stockhouse (Oct 16th, 2023)
- ↑ 81.0 81.1 Premarket Mover: Silvergate Capital Corp (SI) Down 3.51% - InvestorsObserver (Oct 16th, 2023)
- ↑ 82.0 82.1 82.2 FTX: Collapsed crypto giant recovers over $5bn of assets - BBC (Nov 2, 2023)
- ↑ 83.0 83.1 83.2 83.3 FTX Founder Sam Bankman-Fried Indicted For Bribing Chinese Officials - TheTechee (Accessed Apr 17, 2024)
- ↑ FTX Founder Sam Bankman-Fried Indicted For Bribing Chinese Officials - Reddit (Accessed Apr 17, 2024)
- ↑ 85.0 85.1 85.2 FTX Secures Court Approval to Sell Crypto Holdings, Including BTC and SOL - CoinDesk (Sep 14, 2023)
- ↑ 86.0 86.1 86.2 86.3 86.4 86.5 86.6 Billion Dollar Crypto Exchange FTX Gains Regulatory Nod to Offload $3.4 Billion in Bitcoin, Ethereum, and Ripple (XRP): No Market Impact Foreseen - Dispelling FUD - Crypto News Flash (Sep 14, 2023)
- ↑ Why The FTX Liquidation Will SURPRISE Everyone! - YouTube (Sep 14, 2023)
- ↑ Hsaka Trades - "Fail to understand trying to scapegoat CZ for everything. Would they rather FTX/Alameda continued operating the house of cards only for the inevitable fallout to be 10x worse? It's like pinning the Luna fiasco on everyone who cautioned about it. Sets very dangerous precedents." - Twitter (Nov 8, 2022)
- ↑ RookieXBT - "for those wondering … any money you have on FTX is pretty much lost dark day in crypto, we simply pray for better times love you all gn" - Twitter (Nov 8, 2022)
- ↑ 90.0 90.1 90.2 90.3 FTX Founder Sam Bankman-Fried Indicted For Bribing Chinese Officials - TheTechee (Accessed Apr 17, 2024)
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