A second-placed cryptocurrency firm was FTX. But today, it merely serves as a bankrupt platform. Due to limited liquidity,
FTX was unable to properly deliver services on November 8. Finally, on November 12th, the business filed for Chapter 11 bankruptcy in a US district court together with nearly all of its related businesses, including FTXUS, Alameda Research, etc.
Sam Bankman-Fried (SBF), the creator and former CEO of the exchange, participated in a video conference on November 30 at the DealBook Summit hosted by the New York Times.
The host of the interview questioned him about if it was deliberate for the money of the exchange to be mixed with those of its subsidiaries.
According to SBF, the companies’ cash were mixed without his knowledge.
“I mixed up money without realizing it (…) Alameda’s position was so large that I was honestly taken aback, which indicates yet another oversight mistake on my end and the failure to designate a principally responsible party,” SBF added.
SBF emphasized that he was not closely involved with Alameda Research’s financial activities and was not directly aware of what was happening at the time.
According to sources, Alameda Research received the user’s cash via the exchange and utilized them to pay the loan.
The majority of the customers attempted to withdraw their money from the exchange during the panicky situation, but FTX was unable to process the withdrawals.
On November 11, FTX finally stopped all services completely and on November 12, it filed for bankruptcy.
SBF previously claimed in an interview that the FTX token (FTT), a Native token of the FTX exchange, was significantly superior to other digital currencies because of its distinct use case, burn mechanism, and cash flow.
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