LIVE – Follow the FTX deal in real time

FTX faces significant solvency concerns following a massive sale of FTT tokens by Binance. Changpeng Zhao hinted at a possible takeover of FTX in agreement with Sam Bankman-Fried, which he later canceled after having studied the management of the accounts of the customers of the platform. Follow the evolution of the situation live.

Sam Bankman-Fried engages with his employees

🔴 12:45 : In a message shared on Slack, the CEO of FTX tries to reassure his employees: “We still have a theoretical possibility of raising funds, which is my highest priority next week.” In this regard, he adds: As a potential investor, we are already in discussion with Justin Sun. Regarding Binance, I have the impression that they never really intended to go through with the operation. »

FTX.US is still unaffected

11:00 : FTX.US, the American branch of FTX, still provides all of its services as normal.

Beginning of live

10:58 : Please join us to follow the latest news of the FTX case. Send us your questions by e-mail at [email protected] Where on our Twitter account with the hashtag #CryptoastFTX. We will answer them in this live.

Any information to share with us on this case? Write to us at [email protected] with [CryptoastFTX] in the email title.

Circle co-founder reassures Solana investors

8:44 : Jeremy Allaire, the co-founder of Circle, assures that the stablecoin USDC circulates normally on the Solana blockchain and that it is in no way affected by the setbacks of FTX.

November 9: Binance cancels its takeover of FTX

dYdX pauses SOL trading

22:53 : The dYdX trading platform announces the discontinuation of the SOL-USD trading pair “due to extreme market volatility”.

Binance announces that it will not save FTX

22:00 : Binance has finally declared that it will not pursue its purchase of the FTX platform, citing “out of control problems” and “mismanaged client funds”. Thus, the most total fog settles on the cryptocurrency market, the latter having already been in great difficulty for a few days.

FTX is in deficit

19:10 : Several sources evoke a loss equivalent to 6 billion dollars in the treasury of FTX.

FTX suspends withdrawals on its platform

10:59 : Cryptocurrency withdrawals since FTX are currently blocked. According to Etherscan, no more tokens have left the platform for more than 4 hours.

Solana’s SOL token in trouble

08:00 : After suffering a loss of around 20% on November 8, the SOL token of the Solana blockchain lost an additional 47% during the day.

👉 Solana (SOL) down 40% – Is it likely to continue its fall?

SBF’s fortunes heavily affected

08:00 :The billionaire and founder of FTX had a significant portion of his holdings in FTT, the native token of the exchange platform. In total, Sam Bankman-Fried saw his fortune decrease by 93% in 24 hours. The FTT then trades around 5 dollars.

👉 FTX: Sam Bankman-Fried’s fortune increases from 14.6 billion to 991 million dollars

November 8: Binance could buy FTX to save the platform

Sam Bankman-Fried allegedly solicited Wall Street

22:07 : Before signing a tentative takeover agreement with competitor Binance, the FTX platform reportedly first called for help from several Silicon Valley and Wall Street billionaires, without success. This is approximately 5 to 6 billion dollars which had to be found before the end of the day on Tuesday October 8th.

Binance talks about a possible takeover of the FTX platform

17:09 : A due diligence process has been initiated between the 2 entities. In other words, Binance will be able to access FTX accounts in order to take a closer look at the management of its accounts, and can withdraw from the agreement at any time.

👉 Binance intends to buy the FTX platform

Multicoin Capital admits to being heavily exposed to FTX

11:00 : Multicoin Capital, a major investment fund in the ecosystem, reveals through a letter that 10% of its funds held on FTX are still pending withdrawal. In addition, the company sold its entire position in FTT when the price was at 17 dollars against BTC and USD. These are also blocked.

The FTT token begins its fall

04:00 : The price of FTT shows a drop of 25% in a few minutes. Panic is setting in among investors, the tokens of the Solana ecosystem are also suffering significant losses (FTX has invested heavily in Solana). The market begins to fall as a whole.

👉 FTX’s FTT drops 25% in minutes, Binance singled out

November 7: the beginning of the difficulties for FTX

Changpeng Zhao refuses Alameda Research’s peace offer

20:35 : Caroline Elison, CEO of Alameda Research, waved a white flag. She offered Changpeng Zhao to buy Binance’s FTT tokens for $22 each, in order to limit the impact of liquidations on the market. Binance’s CEO declined the offer.

👉 Changpeng Zhao refuses Alameda Research’s peace offer

The warning signs of the fall of FTX

Hostilities began on November 2following the publication of a report by CoinDesk revealing that Alameda ResearchSam Bankman-Fried’s investment fund, could find itself in a state of insolvency in the event of a substantial fall in the FTTthe FTX platform token.

According to the document, as of June 2022, Alameda Research held $14.6 billion in assets in various forms. In this sum, the fund held about 10.4 billion dollars in the form of different cryptocurrencies, especially in FTT and SOLthe Solana ecosystem token in which FTX has invested heavily.

A few days later, Changpeng Zhao, CEO of Binance, announces a gradual release of FTT tokens held by Binance, equivalent to more than $2.1 billion as of November 6, the date of publication. The president of the exchange explicitly explained this choice following the CoinDesk revelations:

“Due to recent revelations that have been made, we have decided to liquidate any remaining TTFs on our books. We will try to do this in a way that minimizes the impact on the market. »

To reassure investors, Alameda Research CEO Caroline Elisonquickly offered Binance to buy back all of its FTT tokens for $22 each, what Changpeng Zhao refused. Panic sets in and rumors of FTX insolvency eventually give way to harsh reality: FTX is in deficit.

Thus, rumors of a possible fall of the second largest exchange in the world have flared: the price of FTT has collapsed, falling more than 80% until reaching 4 dollars.

On November 8, the unthinkable happens: during parallel statements, Changpeng Zhao and Sam Bankman-Fried announce that FTX had to resort to the help of Binance. More specifically, the 2 entities signed a non-binding offer, leaving Binance the possibility of acquiring FTX after a process of due diligence.

However, after a study of FTX accounts, Binance announces on November 9 that it will not be able to save the platform in difficultyciting “out-of-control issues” and “mismanaged client funds.”

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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.

Maximilien Prue

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