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FTT Surges 50% On FTX Creditors’ Claims Settlement And Billions In Compensation: How High Can It Rise?

In a significant development, defunct cryptocurrency exchange FTX has unveiled a reorganization plan to reimburse almost all of its customers. 

The announcement has sparked a substantial surge in the exchange’s native token, FTT, which recorded an uptrend of 52% over the past seven days, reaching a monthly high of $2.29 during Wednesday’s early trading session.

FTX Unveils Debt Repayment Strategy

FTX estimates its outstanding debts to creditors to be approximately $11.2 billion, as revealed in the reorganization plan published late Tuesday. The company has disclosed that it possesses between $14.5 billion and $16.3 billion, which it intends to distribute among the creditors.

Under the proposed plan, customers with $50,000 or less claims will receive approximately 118% of the allowed claim amount. This compensation is slated to be disbursed to around 98% of the creditors, relieving FTX customers who have experienced locked funds since the exchange filed for bankruptcy protection in November 2022. 

FTX stated in a press release on Wednesday that the company could not utilize the appreciation of the missing tokens during the Chapter 11 cases. Instead, FTX had to identify other recoverable sources of value to repay creditors. 

Following the departure of founder Sam Bankman-Fried, FTX appointed John Ray III as CEO. Ray, speaking on the matter in November 2022, expressed his astonishment at the “complete failure of corporate controls and such a complete absence of trustworthy financial information” witnessed at FTX. Ray further stated in the press release on Wednesday: 

We are pleased to be in a position to propose a Chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors. 

FTX’s founder, Sam Bankman-Fried, faced legal consequences, being convicted on seven criminal counts, including charges related to embezzling billions of dollars from FTX’s customers. Bankman-Fried was subsequently sentenced to 25 years in prison.

FTT Bulls Eyeing $2.55 For Potential Breakout Continuation

As of the latest update, the price of FTT has corrected to $2.050 after reaching its monthly high. This breakout occurred after consolidation between the $1.17 and $1.48 levels.

At the current price level, FTT faces a significant resistance at $2.169, which has led to the ongoing correction. If FTT sustains its bullish momentum, the next resistance level to watch is $2.55 in the token’s daily chart. 

A successful breakthrough of this level could potentially lead to a retest of the $3 mark, which has not been revisited since January.

On the other hand, if the price experiences a further correction, FTT bulls should closely monitor the $1.95 and $1.765 levels, as they serve as crucial support levels. It is essential to prevent a loss of the gains achieved over the past month, which amounts to an 18% increase during this period.

FTX

Featured image from Shutterstock, chart from TradingView.com

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FTX Co-Founder Sam Bankman-Fried’s Civil Liability Released In Settlement With Investors

According to a recent Bloomberg report, a group of investors and customers of cryptocurrency exchange FTX have agreed to drop their claims against co-founder Sam Bankman-Fried. 

In exchange, Bankman-Fried has agreed to cooperate with the plaintiffs in the ongoing lawsuits against other defendants related to the collapse of FTX.

Sam  Bankman-Fried And Insiders Settle

Per the report, if approved by a judge, this agreement would release Bankman-Fried from civil liability just weeks after being sentenced to 25 years in prison for fraud stemming from allegations of stealing billions of dollars from FTX. 

The settlement, filed in federal court in Miami, stipulates that the plaintiffs in the multi-district litigation will resolve all current and future claims against Bankman-Fried.

Other FTX insiders, including former executives Gary Wang, Caroline Ellison, and Nishad Singh, who testified against Bankman-Fried, were also sued by investors. However, they have agreed to settle and have already started providing information to support the plaintiff’s case, as stated in the court filing. 

Notably, this leaves the high-profile celebrities, sports stars, and social media influencers who promoted FTX to investors and customers as the remaining defendants.

As part of the settlement agreement, Bankman-Fried has committed to assisting the plaintiffs’ lawyers in pursuing the remaining FTX endorsers. Additionally, he will provide all nonprivileged documents related to his assets and his investment in artificial intelligence start-up Anthropic. 

Bankman-Fried will also submit an affidavit certifying his net worth as negative and share documents about other defendants involved in the expansive civil litigation.

The list of defendants in the consolidated FTX lawsuits is extensive, with financiers and celebrity endorsers such as Tom Brady, Shaquille O’Neal, and Gisele Bundchen accused of promoting “unregistered securities” and luring investors into a Ponzi scheme. 

Bankman-Fried’s agreement includes providing any relevant information about venture capital firms that invested in FTX and accountants and lawyers who worked with the exchange.

If successful, the plaintiffs could potentially win substantial amounts in damages. According to court filings, the settlements with the promoters involved in the agreement are estimated to be valued at around $1.3 million.

FTX Scandal Update

Bankman-Fried’s spokesperson, Mark Botnick, stated that his client is determined to make amends. Botnick emphasized that since the collapse of FTX, Bankman-Fried has focused solely on returning the estate’s assets to customers and ensuring they are made whole at current prices. 

Botnick expressed Bankman-Fried’s commitment to continue working with Adam Moskowitz and his team, representing the plaintiffs, to achieve this goal.

In their request for the judge’s approval of the settlement, the plaintiffs’ attorneys acknowledged the uncertainty and litigation risks associated with pursuing Bankman-Fried. They concluded that Bankman-Fried’s cooperation would be “valuable” in the remaining legal proceedings.

Bankman-Fried, who was found guilty at trial late last year and sentenced in late March, is currently in custody at the Metropolitan Detention Center in Brooklyn, New York, before being transferred to the prison where he will serve his term. He intends to appeal both his sentence and conviction.

FTX

Featured image from Reuters, chart from TradingView.com

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FTX Co-Founder Sam Bankman-Fried Appeals 25-Year Conviction And Makes Unusual Request

In a dramatic turn of events, Sam Bankman-Fried, the founder of the now-defunct cryptocurrency exchange FTX, has been sentenced to 25 years in prison for defrauding users.

The judgment was handed down by US District Judge Lewis Kaplan during a hearing in a Lower Manhattan federal courtroom on March 28. 

Bankman-Fried, who had publicly announced plans to appeal the conviction, has now officially filed an objection to the decision.

‘Remorse And Empathy’ For FTX Customers

During the sentencing hearing, US District Judge Lewis Kaplan leveled serious accusations against Bankman-Fried, including perjury and evasiveness during his testimony. The judge expressed disappointment in Bankman-Fried’s lack of regret for the crimes committed. 

In response, Bankman-Fried expressed remorse and empathy for the “thousands of customers” who suffered financial losses. He acknowledged his responsibility as CEO of FTX and expressed desire to repair the damage caused.

Bankman-Fried expressed frustration at the loss of what he had achieved and his limited ability to improve the situation from prison. Despite his efforts, he acknowledged the constraints that limited his ability to do more.

Sam Bankman-Fried Alleges Trial Unfairness

In a post-conviction interview, Bankman-Fried expressed concerns about the fairness of his trial, specifically targeting Sullivan & Cromwell, the law firm representing FTX’s new owners. 

The disgraced FTX co-founder accused the law firm of colluding with the prosecution and obstructing his access to key FTX documents shared with the prosecution. Bankman-Fried claimed that this had a detrimental effect on the entire trial, including media coverage and the defense’s ability to present evidence in his favor.

With the official appeal now filed, Bankman-Fried is seeking a different outcome, hoping for a reduced sentence. He emphasized the importance of introducing crucial evidence and presenting key witnesses, which he claims his defense was denied the opportunity to do during the trial.

Currently being held at the Metropolitan Detention Center in Brooklyn, Bankman-Fried has been particularly vocal about his desire to remain in the MDC-Brooklyn jail pending the outcome of his appeal. 

As this high-profile case unfolds, the crypto mogul’s quest for a different outcome and the damage caused by FTX’s collapse continue to captivate public attention.

Future actions by the US government in response to this appeal, as well as subsequent legal actions and filings by Bankman-Fried’s legal team, are yet to be determined. 

Sam Bankman-Fried

Presently, the native token of the exchange, FTT, is trading at $1.60. Notably, the token has experienced a noteworthy 4% price increase within the last 24 hours, distinguishing it from the overall trend of sideways price movement or declines observed across the cryptocurrency market.

However, it is important to note that the token has witnessed a decline of 32% over the past month, which has considerably diminished FTT’s year-to-date surge, currently standing at 25%.

Featured image from iStock, chart from TradingView.com 

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FTX Founder Sam Bankman-Fried Breaks Silence, Announces Appeal For 25-Year Conviction

In a recent interview with ABC News, Sam Bankman-Fried (SBF), the co-founder and former CEO of the now-bankrupt cryptocurrency exchange FTX, spoke about his remorse and plans for an appeal following his recent 25-year prison sentence for fraud.

FTX Co-Founder Admits Errors

Bankman-Fried, currently held at the Metropolitan Detention Center in Brooklyn, shared his reflections on the unfolding events. He admitted to making several “bad decisions” in 2022 that led to FTX’s insolvency.

Although he claimed he had never considered his actions illegal, Bankman-Fried acknowledged falling short of the “high ethical standard” he set for himself.

During the sentencing, US District Judge Lewis Kaplan accused Bankman-Fried of perjury and evasiveness during his testimony, criticizing his lack of remorse for the crimes committed. In response, Bankman-Fried affirmed his remorse and expressed empathy for the thousands of customers who suffered financial losses. SBF claimed the following:

I’m haunted, every day, by what was lost. I never intended to hurt anyone or take anyone’s money. But I was the CEO of FTX, I was responsible for what happened to the company, and when you’re responsible it doesn’t matter why it goes bad. I’d give anything to be able to help repair even part of the damage. I’m doing what I can from prison, but it’s deeply frustrating not to be able to do more

Bankman-Fried also acknowledged the impact on his co-workers, who reportedly dedicated their lives to FTX, and the charities he supported, whose funding was affected by the company’s collapse. 

The disgraced crypto mogul expressed deep regret for “throwing away” what they had worked hard for and expressed a desire to repair at least part of the damage caused. Despite his efforts from prison, Bankman-Fried admitted to feeling frustrated by the limitations on what he could do to rectify the situation.

In his statement to the court, Bankman-Fried contended that if he or another FTX employee had remained CEO, customers would have been paid back by now. He attributed the delay in compensation to the company’s decision not to restart the FTX exchange, which he believed could have created long-term value.

Sam Bankman-Fried Claims ‘Unfair’ Trial, Plans Appeal

During the interview, Bankman-Fried also raised concerns about the fairness of his trial, specifically calling out Sullivan & Cromwell, the law firm representing FTX’s new owners. 

SBF accused them of colluding with the prosecution and preventing him from accessing key FTX documents shared with the prosecution. Bankman-Fried claimed this had a “detrimental effect” on the entire trial, including media coverage and the defense’s ability to present evidence in his favor.

Responding to Bankman-Fried’s claims, a spokesperson for Sullivan & Cromwell referred to Judge Kaplan’s sentencing remarks, highlighting Bankman-Fried’s perjury on the witness stand and his strategy of blaming lawyers and the bankruptcy process instead of accepting responsibility for his crimes.

Looking ahead, Bankman-Fried revealed that his defense team plans to appeal the conviction later this year, primarily based on certain trial testimony that he felt greatly misrepresented the actual events. He also mentioned the importance of introducing “crucial evidence” and presenting key witnesses, which his defense was allegedly not allowed to do during the trial.

As Bankman-Fried begins his prison term, he acknowledges the gravity of the situation, having lost everything. While expressing a desire to make a positive difference in the world, he recognizes the limitations of his current circumstances and remains committed to seeking justice through appeals.

Sam Bankman-Fried

Featured image from BBC News, chart from TradingView.com

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BREAKING: Sam Bankman-Fried Sentenced To 25 Years In Prison

In a highly anticipated courtroom verdict, Sam Bankman-Fried, the founder of the collapsed cryptocurrency exchange FTX, has been sentenced to 25 years in prison for defrauding users. US District Judge Lewis Kaplan delivered the judgment during a Lower Manhattan federal courtroom hearing.

FTX Founder Sam Bankman-Fried Sentenced

Judge Kaplan sternly criticized the defense’s argument, labeling it as “misleading, logically flawed, and speculative.” As reported by our sister site, Bitcoinist, Kaplan highlighted Bankman-Fried’s obstruction of justice and witness tampering during his defense, which were significant factors considered in the sentencing decision.

Bankman-Fried expressed remorse in a statement, acknowledging that his series of “selfish” decisions as the leader of FTX had led to the exchange’s downfall. He admitted to having “thrown it all away” and expressed regret that continues to haunt him daily.

Prosecutors had initially sought a maximum sentence of 50 years, while Bankman-Fried’s legal team argued for a maximum of 6 years. In November, Bankman-Fried was found guilty on seven criminal counts, and he has since been held at the Metropolitan Detention Center in Brooklyn.

Life Plans Shattered

Late Tuesday, prosecutors submitted documents containing testimonies from victims, shedding light on the impact of Bankman-Fried’s actions. One victim, whose name was redacted, wrote a letter dated March 15, describing the destruction of their entire life and the emotional toll it had taken on their family. 

They emphasized that they had entrusted their funds to FTX as a custodian, not consenting to the risks Bankman-Fried had taken with their money. The victim shared the suffering that had led to depression and even thoughts of suicide.

During the trial, prosecutors revealed that Bankman-Fried had diverted funds from FTX customers, amounting to as much as $8 billion. These funds were allegedly used to finance a wide range of external interests, including political initiatives, speculative investments, and funding the lifestyles of FTX executives.

Sam Bankman-Fried

Featured image from Shutterstock, chart from TradingView.com 

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BREAKING: Sam Bankman-Fried Sentenced To 25 Years In Prison

In a highly anticipated courtroom verdict, Sam Bankman-Fried, the founder of the collapsed cryptocurrency exchange FTX, has been sentenced to 25 years in prison for defrauding users. US District Judge Lewis Kaplan delivered the judgment during a Lower Manhattan federal courtroom hearing.

FTX Founder Sam Bankman-Fried Sentenced

Judge Kaplan sternly criticized the defense’s argument, labeling it as “misleading, logically flawed, and speculative.” As reported by our sister site, Bitcoinist, Kaplan highlighted Bankman-Fried’s obstruction of justice and witness tampering during his defense, which were significant factors considered in the sentencing decision.

Bankman-Fried expressed remorse in a statement, acknowledging that his series of “selfish” decisions as the leader of FTX had led to the exchange’s downfall. He admitted to having “thrown it all away” and expressed regret that continues to haunt him daily.

Prosecutors had initially sought a maximum sentence of 50 years, while Bankman-Fried’s legal team argued for a maximum of 6 years. In November, Bankman-Fried was found guilty on seven criminal counts, and he has since been held at the Metropolitan Detention Center in Brooklyn.

Life Plans Shattered

Late Tuesday, prosecutors submitted documents containing testimonies from victims, shedding light on the impact of Bankman-Fried’s actions. One victim, whose name was redacted, wrote a letter dated March 15, describing the destruction of their entire life and the emotional toll it had taken on their family. 

They emphasized that they had entrusted their funds to FTX as a custodian, not consenting to the risks Bankman-Fried had taken with their money. The victim shared the suffering that had led to depression and even thoughts of suicide.

During the trial, prosecutors revealed that Bankman-Fried had diverted funds from FTX customers, amounting to as much as $8 billion. These funds were allegedly used to finance a wide range of external interests, including political initiatives, speculative investments, and funding the lifestyles of FTX executives.

Sam Bankman-Fried

Featured image from Shutterstock, chart from TradingView.com 

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FTX And IRS Lock Horns Over $24 Billion Tax Bill, FTT’s Key Support Wavers

In a striking turn of events, the Internal Revenue Service (IRS) in the United States has presented a staggering tax bill of $24 billion against the bankrupt cryptocurrency exchange FTX. 

FTX Challenges IRS’s $24 Billion Tax Bill

According to court filings and FTX’s response to the IRS’s claims, several key arguments challenge the basis of the tax bill. Firstly, FTX highlights that its operations spanned three years, never distributing dividends or earnings. 

Secondly, the exchange’s defense attorneys claim that the company incurred substantial losses rather than generating income that could support the IRS’s “exorbitant” tax claim. 

Thirdly, the lawyers argue that FTX is currently in liquidation and is not engaged in any ongoing business activities apart from those required for the liquidation process. 

Finally, the company emphasizes that the recovery sought by the IRS would ultimately come at the expense of FTX’s victims, as the funds would be redirected away from their rightful recipients. 

As the court hearing approaches, FTX asserts that proceeding with a court-supervised estimation process would demonstrate the company’s significant losses during its operational period, rendering the IRS’s claim “baseless.” 

FTX emphasizes that any forced payment would harm the victims of the FTX fraud, many of whom are already grappling with “profound losses.”

FTX’s administrators have managed to recover approximately $7 billion in assets, including $3.4 billion in cryptocurrencies. These figures underscore the complex financial landscape surrounding the IRS’s claim against FTX.

As the courtroom showdown ensues, the case outcome will undoubtedly have significant implications for the future of crypto taxation and the recovery prospects of FTX’s creditors. 

FTT’s Bullish Trend Holds Strong

As the cryptocurrency market experiences a significant correction following a bullish surge led by Bitcoin (BTC), FTX’s native token, FTT, has seen a decline of over 5% in the past 24 hours, adding to the company’s legal concerns.

After a three-month accumulation phase that kept FTT trading in a range between $0.9 and $1.2 from September to the beginning of November, the token witnessed an impressive surge in the last month, reaching its highest price of the year at $6.042, a level not seen since November 2022.

FTX

However, the token has retraced to its current price mark of $4.8, with the next support level at $4.45 in case of further downward movement.

On a positive note, FTT is trading above key moving averages, including the 200-day and 50-day MA, which provide support and indicate the potential for further upward price action.

Furthermore, since the beginning of November, FTT has consistently recorded higher highs and higher lows, forming an uptrend pattern. This trend has been observed three times, with the token experiencing an uptrend, followed by a pullback for a support test, and then a continuation to reach new highs.

Assuming this trend continues and the legal developments do not have a significant impact on the price of the token, FTT may be poised for a significant rise in the coming months, given the remarkable uptrend pattern seen on the daily chart.

Featured image from Shutterstock, chart from TradingView.com 

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Disgraced FTX Co-Founder Placed On Suicide Watch In Prison, Reveals Former Inmate

Sam Bankman-Fried, the co-founder of the FTX crypto exchange, who was recently found guilty of multiple counts of criminal fraud, reportedly faced a harrowing experience while incarcerated. 

According to a former mobster turned federal informant, Gene Borrello, who shared a prison cell with Bankman-Fried, the disgraced crypto executive was placed on suicide watch and endured challenging conditions during his time at Brooklyn Metropolitan Detention Center (MDC) while awaiting sentencing next year.

FTX Co-Founder Subjected To Extortion

The details emerged during an interview with crypto blogger Tiffany Fong, where Borrello disclosed the troubling circumstances surrounding Bankman-Fried’s imprisonment. 

The former detainee recounted how Bankman-Fried was subjected to suicide watch, extortion attempts, and even periods of self-neglect, including refusing to eat or shower for several days.

In an attempt to protect Bankman-Fried from potential harassment or extortion, authorities segregated him from gang members within the prison facility. However, despite these precautions, Borrello’s intervention reportedly foiled an extortion plot against the crypto mogul.

Borrello further revealed that he prevented the extortionists from coercing Bankman-Fried into sharing a bunk with them, placing the FTX co-founder in a solitary wing. Additionally, Bankman-Fried’s parents reportedly requested his transfer to the solitary unit to ensure his safety.

Drastic Change In Prison?

Describing the physical and emotional toll on Bankman-Fried, Borrello highlighted the crypto executive’s frail appearance, likening it to that of an elderly man. Borrello stated on the matter:

He has the body of an 80-year-old man. He has, like, no shape to him. When he talks to you, he puts his head down; he’s very timid, he talks very nervously. 

Borrello also noted Bankman-Fried’s timid demeanor, with the co-founder displaying signs of nervousness during interactions. 

In one conversation, Borrello confronted Bankman-Fried, stating that he had never been in a physical altercation before and questioned his association with gang members.

As reported by our sister site, Bitcoinist, Bankman-Fried received unique treatment in prison, where he allegedly received special privileges for sharing cryptocurrency-related information with prison guards and fellow inmates.

However, Borrello’s account offers a contrasting perspective, emphasizing the challenges and vulnerabilities the disgraced executive faced behind bars.

As Bankman-Fried’s sentencing approaches, his time in prison, including allegations of bullying and the ultimate impact on his legal proceedings, continues to draw attention. 

The revelations from Borrello’s interview provide a rare glimpse into the world of the disgraced FTX co-founder, and it remains to be seen what other revelations may be made in prison for Bankman-Fried as his sentencing trial looms in 2024.

FTX

At present, the native token of FTX, FTT, is trading at $4.0997, indicating a decrease of 2.8% in the past 24 hours. However, it is noteworthy that the token has experienced a substantial surge of 216% year to date.

Featured image from Shutterstock, a chart from TradingView.com 

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From Crypto To Catch: Disgraced FTX Founder Turns To Trading Fish In Prison

According to a report by Business Insider, Sam Bankman-Fried (SBF), co-founder and former CEO of FTX, has adapted to the economic system of New York’s Metropolitan Detention Center (MDC), where he is currently awaiting sentencing on multiple felony counts. 

The disgraced crypto-billionaire has reportedly been bartering, using food as currency in exchange for various services within the prison.

Former FTX CEO SBF Trades Fish For Services

Per the report, mackerel, a fish commonly referred to as “macks” among inmates, emerged as the currency of choice in federal prisons after cigarettes were banned. The fish’s popularity stems from its stability and value within the prison economy. 

Formerly incarcerated individuals like attorney Larry Levin have accepted mackerel as payment from fellow prisoners, using it to acquire services such as beard trims and shoe shines. 

The demand for mackerel became so significant that suppliers, including Global Source Marketing, witnessed increased sales, according to Business Insider.

In a prison environment where inmates lack access to traditional or digital currency, products with steady value, such as certain food items and stamps, serve as substitutes for money. 

Mackerel and other stable commodities like tuna become a means of exchange, with their value pegged to the dollar. This economic logic allows inmates to engage in various transactions while maintaining a semblance of a barter system.

The use of fish as a medium of exchange in federal prisons has been widespread since 2004, following the cigarette ban. 

Sam Bankman-Fried faces sentencing on March 28, 2024, for charges that include wire fraud and conspiracy to commit money laundering, with a potential prison term of up to 110 years. Additionally, SBF is set to stand trial for separate counts related to political bribery.

 FTT Surges with Impressive Gains

FTT, the native token of the FTX cryptocurrency exchange, has seen a remarkable surge in value in recent weeks. With substantial gains across various timeframes and an impressive market capitalization of 1.5 billion, FTT has cemented its position among the top 50 tokens in the crypto market. 

Over the past 24 hours, FTT has experienced a significant increase of 21%, showcasing the token’s upward momentum. This short-term surge is complemented by a strong performance over the past week, with a notable rise of 26%. 

FTX

However, the real standout lies in FTT’s gains over the past 14 and 30 days. Within the last two weeks, FTT has skyrocketed by an impressive 100%, while the 30-day timeframe has seen an astounding surge of 315%. 

These gains highlight the growing demand and investor interest in FTT as rumors of a possible reboot of the exchange circulate within the crypto community.

Featured image from Bloomberg, chart from TradingView.com 

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FTX Ramps Up Restitution Efforts, Subpoenas AI Firm CAIS Over $6.5M Investment

Bankrupt crypto exchange FTX, led by newly appointed CEO John Ray III, has embarked on an intensive legal campaign to regain control and recover assets in its pursuit of financial restitution. 

As founder Sam Bankman-Fried awaits possible conviction and faces a staggering 114 years in prison if found guilty, FTX’s asset recovery plan continues under Ray’s leadership. 

FTX Bankruptcy Battle Escalates

In a recent filing with the US Bankruptcy Court for the District of Delaware, FTX issued a subpoena to the artificial intelligence (AI) firm Center for AI Safety (CAIS), demanding accounting records and information regarding payments, agreements, and contracts related to the $6.5 million investment.

The motion, filed on behalf of the debtors who sought Chapter 11 bankruptcy protection on November 11 and November 14, 2022, states that the Debtors are operating their businesses and managing their properties as debtors-in-possession under the Bankruptcy Code. 

It also highlights the appointment of an Official Committee of Unsecured Creditors by the US Trustee. FTX’s investigations have revealed that CAIS received transfers totaling at least $6.5 million in debtors’ funds between May and September 2022. 

As part of their ongoing efforts to understand the debtors’ financial landscape, transactions, and estate, FTX has requested CAIS to produce relevant documents and information related to payments, agreements, communications, and other pertinent details.

Debtors Seek Answers

According to the motion filed on October 25, despite the debtors’ attempts to engage in a cooperative dialogue and resolve the matter amicably, CAIS has rejected voluntary requests for accounting and failed to respond to formal correspondence. The filing reads: 

The Debtors have attempted to engage in a cooperative meet and confer process to obtain information from the CAIS voluntarily. The Debtors have so far been unsuccessful. On a phone call on August 22, 2023, counsel for CAIS expressed unwillingness to make its records related to the transfers available to the Debtors. In emails between October 2-6, 2023, Debtors requested information concerning the amount of Debtor funds CAIS has spent, the amount of Debtor funds it has retained, and its financial condition. CAIS declined to provide that information. 

The motion concludes by stating that notice of this action has been provided to relevant parties, including the US Trustee, the Committee’s counsel, the Securities and Exchange Commission, the Internal Revenue Service, the US Department of Justice, the US Attorney for the District of Delaware, and CAIS itself.

FTX

FTX’s native token, FTT, is trading at $1.22, marking a return to the $1 level for the first time since November 2022. Although it has experienced a decline of over 5% in the past 24 hours, the token has exhibited noteworthy gains over the past seven days, amounting to a 17% upward trend. 

The token’s value has diminished by more than 95% when considering the one-year timeframe.

Featured image from Shutterstock, chart from TradingView.com 

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NYDIG Analyzed The FTX Collapse And Its Implications. What Did We Learn?

It’s time for NYDIG to chip in. The FTX fiasco is the theme of the month in the crypto world, and the show’s just beginning. The NYDIG research team avoids the temptation to summarize the whole saga and goes straight to the implications of the fall of Sam Bankman-Fried’s empire. “Some signs of contagion have appeared but a full accounting of the damage and regaining of investor confidence will likely take time,” they say understating the harsh reality. 

Taking a page from NYDIG’s book, let’s skip the intro and go straight to the conclusions.

Contagion Is Around The Corner

Speaking about “signs of contagion,” NYDIG mentions BlockFi and the Genesis/ Gemini combo. However, there might be much more to come.

“Several other service providers have piqued the curiosity of crypto sleuths as potential next dominoes, but we hesitate to speculate too much without hard evidence. Regardless, industry participants are on edge for even the slightest signs of stress and continue to pull balances off exchanges.”

In the contagion section of the paper, we find a rare mention of a conspiracy theory that’s making the rounds in crypto twitter. Rarely do big players bring this up. Of course, NYDIG ends up doubling down on the thesis about Terra/Luna that they put out in a previous paper titled “On Impossible Things Before Breakfast.”

“There have been accusations that Alameda caused the initial de-peg of UST, and while that may have been the case, uneconomic rates paid by the Anchor Protocol and insecure economic design of LUNA/UST ensured its ultimate destruction, destroying $60B worth of crypto wealth in a few short days.”

In the previous paper, NYDIG printed a great segway to the next section. “DeFi is not decentralized. The Terra ecosystem was not decentralized. Terra initially sourced funding from LUNA token issuance apportioned to Terraform Labs at inception.”

FTTUSD price chart - TradingView

FTT price chart on Bitstamp | Source: FTT/USD on TradingView.com

NYDIG On DeFi Vs. CeFi

Even though they’re clearly not fans of DeFi, NYDIG gives them some credit. “Most DeFi protocols operated as advertised through the volatility this year, minus the ongoing hacks within the ecosystem.” True, but the ongoing hacks are not a minor factor. It’s a billion-dollar problem with no apparent solution available. However, according to NYDIG, this time the problem lies with centralized finance, and those companies “did the rest of the damage” by engaging in these behaviors:

“Poor risk controls, conflicts of interest, excessive leverage, unclear accounting, counterparty risks, and poor management were just some of the factors at play. Furthermore, the use of an equity-like token, FTX Token (FTT), as collateral exacerbated the issue.”

Is More Regulation The Answer?

According to NYDIG, the industry was expecting “improved regulatory clarity for US investors.” However, thanks to the FTX crash and Sam Bankman-Fried’s political lobbying, “the path in DC has grown more complicated. Regulators will now be on their toes and increasingly more likely to use their current authority to enforce existing regulations and possibly issue new ones.”

It is what it is, however one has to take into account that “FTX.com wasn’t even a US entity, which raises the question of how impactful improved US regulations would have been, at least with respect to preventing the specific recent events surrounding FTX.” That’s true, but FTX was in business with several US fully regulated entities. If effective, shouldn’t Silvergate’s AML procedures have detected Sam Bankman-Fried’s shenanigans? 

A related question would be, shouldn’t the due diligence of the highly regarded entities that invested in FTX have detected that something was off?

Featured Image by Kaleidico on Unsplash | Charts by TradingView

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Ep07- Moneyland – Companion Guide For BBC’s “The Missing Cryptoqueen” Podcast

What’s Moneyland? That’s what the first half of this “The Missing Cryptoqueen” episode is about. The second part is about Frankfurt, the city where Jamie and Georgia think that Dr. Ruja might be hiding. In any case, Moneyland is that mythical place where the money that millionaires and corporate entities want to disappear goes. The concept comes from british journalist Oliver Bullough, who “has spent many years investigating the ways illicit money flows around the world, including in Eastern Europe.” He’s this episode’s star guest.

The Frankfurt part, however, is the most exciting segment of the whole podcast so far. The production team really stepped up their investigative game and got closer to Dr. Ruja than any police department ever will. We know our summaries are phenomenal, but we recommend that everyone listens to that second part at least.  

Remember, you can download episodes directly from the BBC, or listen to “The Missing Cryptoqueen” through Apple, Spotify, or iVoox.

In any case, let’s go to Moneyland!

About “The Missing Cryptoqueen,” Episode Seven – “In Plain Sight”

Is Dr. Ruja alive? Before even mentioning Moneyland, producer Georgia Catt confirms a possible Dr. Ruja sighting to presenter Jamie Bartlett. The staff of an Athens restaurant remembers someone with Dr. Ruja’s characteristics as part of a party of six. What they’re not sure about is exactly *when* did this happen. Interesting. The possibility of a Dr. Ruja running around Europe might’ve been the catalyst for the Frankfurt part of the episode. But first, let’s get to Moneyland.

After hearing the basic facts of the OneCoin case, journalist Oliver Bullough tells Jamie that once upon a time “Albania descended into anarchy because of a pyramid scheme.” As the crypto world has confirmed lately, these scams can be dangerous. Then, Bullough explains what Moneyland is. Rich and smart people can construct their “assets in such a way that they become invisible.” They can still use them to “buy political influence and nice houses and yachts.” 

When it comes to other people trying to find those assets, though, they turn invisible. So, “that’s what Moneyland is, Moneyland is the place where these assets go.” This breaks Jamie, who asks if there’s zero chance of finding them. Bullough tries to cheer him up by saying “It’s not zero chance. It’s, yeah. I mean, it’s been very well hidden, right?” And that’s not the most depressing part of the episode. After that, they inform us that the UK has stopped their investigation into OneCoin. They just gave up.

FTTUSD price chart - TradingView

FTT price chart for 11/18/2022 on FTX | Source: FTT/USD on TradingView.com

Moneyland Leads To Frankfurt

When things look darker, “The Missing Cryptoqueen’s” production team gets into high gear. They turn their investigating arm up a few notches and focus on the Internet. “We put so much online now, and that information can betray us. And that’s what took us to somewhere we think Dr. Ruja might be.“ That somewhere is Frankfurt. Our heroes determine that Dr. Ruja’s ex-husband and her hidden daughter live in the city. Plus, her best friend seems to have visited Frankfurt recently.

They get there and they find nothing, not a single trace. This part is excruciating. However, it leads Jamie and Georgia to a high-luxury neighborhood that feels like the place Dr. Ruja would live. This is where Monelyland leads to. In there, they find a charismatic but annoying postman that might remember the name Ignatova. They leave that storyline open and “The Missing Cryptoqueen” returns to England. 

To finish the episode off, Jamie has a very interesting discussion with Cameron, “a UK-based OneCoin promoter.” Is he a true believer or is he just defending an extremely lucrative business? Cameron goes all in and carries the OneCoin party line to the very end. Wow. This might be the most surprising part of the whole episode. 

Quotes From Episode Seven of “The Missing Cryptoqueen”:

Oliver Bullough, explaining how money can disappear:

“If you are rich enough and well advised enough or clever enough, you construct your assets in such a way that they become invisible. They still exist, you can still use them to buy things, you can still use them to buy political influence and nice houses and yachts. But when it comes from someone trying to find them, whether that’s a journalist or a police officer, the assets are invisible. And so that’s what Moneyland is, Moneyland is the place where these assets go.”

Jamie Barlett on what led them to Frankfurt:

“There’s one place we haven’t looked, not really looked. And it’s probably the most obvious place of all, the Internet. We put so much online now, and that information can betray us. And that’s what took us to somewhere we think Dr. Ruja might be. Not Athens, Frankfurt. It took weeks of extremely boring internet research and painstakingly going back through everything we’ve learned so far.”

Extra Material, about “Moneyland”: 

In The Guardian’s review of Oliver Bullough’s “Moneyland,” they quote a metaphorical definition of the novel term:

“He conceives of it as a secret, parallel world, almost like something from a fairytale: “The very wealthiest people … have tunnelled into this new land that lies beneath all our nation states, where borders have vanished. They move their money … and themselves wherever they wish, picking and choosing which countries’ laws they wish to live by.”

The Guardian also says:

“He is surprisingly successful at getting some of the architects of the offshore world to open up, and is sensitive to the fact that some of its users have good reason to avoid governments, such as rich dissidents fearing the politically motivated confiscation of their assets. He also accepts an argument frequently put to him in notorious tax havens: that wealthier, less criticised countries such as Britain have been equally involved in building and maintaining Moneyland.”

Episode Credits

Presenter: Jamie Bartlett
Producer: Georgia Catt
Story consultant: Chris Berube
Editor: Philip Sellars
Original music and sound design: Phil Channell
Original music and vocals: Dessislava Stefanova and the London Bulgarian Choir

Previous Companion Guides For BBC’s “The Missing Cryptoqueen” Podcast:

Ep. 01 – https://www.newsbtc.com/news/bitcoin/ep01-dr-ruja-companion-guide-for-bbcs-the-missing-cryptoqueen-podcast/

Ep. 02 – https://www.newsbtc.com/news/bitcoin/ep02-btc-killer-companion-guide-for-bbcs-the-missing-cryptoqueen-podcast/

Ep. 03 – https://www.newsbtc.com/altcoin/ep03-onecoin-companion-guide-for-bbcs-the-missing-cryptoqueen-podcast/

Ep. 04 – https://www.newsbtc.com/scams-and-fraud/ep04-onelife-companion-guide-for-bbcs-the-missing-cryptoqueen-podcast/

Ep. 05 – https://www.newsbtc.com/scams-and-fraud/ep05-mlm-companion-guide-for-bbcs-the-missing-cryptoqueen-podcast/

Ep. 06 – https://www.newsbtc.com/scams-and-fraud/ep06-dealshaker-companion-guide-for-bbcs-the-missing-cryptoqueen-podcast/

Featured Image: The Missing Cryptoqueen’s logo, from the BBC | Charts by TradingView

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Kraken’s Jesse Powell Blast FTX And Sam Bankman-Fried Without Naming Them

Leave it to Jesse Powell to say what everyone in crypto is thinking. “I’m really trying to control my rage,” the mind behind Kraken tweeted to begin his rant. In the following article, we’ll comment on several of his very interesting points. Make no mistake, though, Jesse Powell thinks this isn’t over and the crypto industry will have to work for years to make up for… some other cryptocurrency exchange’s mistake. “More business failures are sure to come as the contagion spreads,” he warned.

At one point, Powell even gave the best advice possible for future crypto investors. “Don’t trust. Verify.”

What he didn’t do, though, was naming Sam Bankman-Fried, FTX, or Alameda Research. We are assuming this is all about them, but it’s just an assumption.

Jesse Powell Allegedly Blast Sam Bankman-Fried

First of all, the head of Kraken doesn’t buy the “I made a mistake” line that Sam Bankman-Fried has been feeding the public via Twitter. And Powell doesn’t mince words while saying he doesn’t.

“This isn’t about aiming high and missing. This is about recklessness, greed, self-interest, hubris, sociopathic behavior that causes a person to risk all the hard-won progress this industry has earned over a decade, for their own personal gain.”

The thing is, Sam Bankman-Fried didn’t only blow up his two billion-dollar businesses. He blew up the whole crypto industry. “We give them power to speak for us but they haven’t earned that privilege. When they blow themselves up, it’s our house, our reputation, our people which bear the brunt of the damage,” Powell tweeted. And he’s probably right about this. Everyone will have to pay for  Bankman-Fried’s mistakes.

Then, in a bizarre turn of events, Jesse Powell brought bitcoin into the mix:

“An exchange implosion of this magnitude is a gift to bitcoin haters all over the world. It’s the excuse they were waiting for to justify whatever attack they’ve been keeping in their back pocket.”

What does the FTX implosion have to do with bitcoin? In fact, out of all the crypto world, bitcoiners are the less affected by all of this. In bitcoin culture, the self-custody of your assets is paramount. And people who make the effort and self-custody aren’t directly affected by exchanges blowing up and losing their customer’s hard-earned money. They are affected by the price movements these black swan events generate, though.

FTTUSD price chart for 11/10/2022 - TradingView

FTT price chart for 11/10/2022 on Binance | Source: FTT/USD on TradingView.com

Are The Media, VCs, And The US Government To Blame?

This is the most interesting part of Jesse Powell’s rant. As bitcoiners denounced Sam Bankman-Fried’s shady business model left and right, the man became a media darling like few others. His frequent political donations, the way he said what the establishment wants to hear about crypto regulation, and the whole myth about him being an effective-altruism vegan were the perfect combination. 

“VCs, the media, the “experts” failed. People torched their own reputations vouching for individuals, projects, businesses they had not diligenced.”

We’re pretty sure “diligenced” is not a word, but Jesse Powell’s message stands. The media failed miserably and led retail astray. They will never admit to their wrongdoings, but Sam Bankman-Fried was on the cover of “Fortune” a couple of weeks ago. “The New Warren Buffet?” was the article’s title.

What about VCs, though? Aren’t they at least partially responsible for financing FTX? Before you answer, read what Jesse Powell has to say about it. He’s got inside information:

“I know for a fact that VCs wrote checks blindly. Why? Because revenues were strong. Were they sustainable? Were they bleeding out money the other side? Was it all predicated on an untenable self-dealing setup, frontrunning clients, misappropriation of user funds? Never asked.”

Last but not least, what about the US Government and its lack of crypto regulation clarity?

“US lawmakers & regulators have some accountability too. You drove this business offshore because you refused to provide a workable regime under which these services could be offered in a supervised manner.”

Jesse Powell is not saying those institutions are as guilty as Sam Bankman-Fried allegedly is, but they really dropped the ball on this one. And, as it always happens, the people suffered.

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Coin Metrics Analyst: “FTX Might Have Provided Massive Bailout For Alameda In Q2”

Did this Coin Metrics analyst uncover the key to the whole Alameda/ FTX story? Because let’s face it, it doesn’t make sense. Both of Sam Bankman-Fried’s businesses were extremely profitable. FTX was the world’s third-biggest exchange and growing, why would anyone risk killing that golden goose? There must have been an underlying cause. Did this Coin Metrics analyst uncover it in the on-chain data? He might have.

The Head of R&D at Coin Metrics, Lucas Nuzzi, ends his thread with a warning: “Important to note that this is my own personal highly-speculative take on what happened based on these on-chain artifacts.” The case the Coin Metrics analyst is making rests on solid on-chain data, but the interpretation of what said data means is “highly-speculative.” So, take it with a grain of salt and don’t go around saying this is exactly what happened, because it might not be. 

That being said, yikes! 

The Coin Metrics Analyst Makes The Case

Lucas Nuzzi starts with a statement of fact, “I found evidence that FTX might have provided a massive bailout for Alameda in Q2 which now came back to haunt them.” And then, he poses a mystery. “40 days ago, 173 million FTT tokens worth over 4B USD became active on-chain.” Where did those tokens go? You guessed it, Alameda Research. The day was September 28th. A record-breaking $8.6B in FTT moved that day.

“That was by far the largest daily move of FTT in the token’s existence and one of the largest ERC20 daily moves we ever recorded at Coin Metrics,” Nuzzi tweeted. What was happening around Alameda and FTX near that time? Nothing special, really.

  • On August 24th, Sam Trabucco stepped down from the Co-CEO position at Alameda Research. “I will stay on as an advisor, but otherwise will not continue to have a strong day-to-day presence at the company,” Trabucco tweeted.
  • On September 27th, Brett Harrison stepped down from the CEO position at FTX. “Over the next few months I’ll be transferring my responsibilities and moving into an advisory role at the company,” Harrison tweeted.
  • This one is the kicker. On September 28th, Sam Bankman-Fried tweeted, “Heads up: rotating a few FTX wallets today (mostly non-circulating); we do this periodically.  Might be a few more coming, won’t have any effect.”

If all of this is true, that last SBF tweet will probably make an appearance in court.

FTTUSD price chart - TradingView

FTT price chart for 11/09/2022 on FTX | Source: FTT/USD on TradingView.com

So, What Did Alameda Do With The Money?

Believe it or not, the FTT tokens came directly from the original ICO smart contract. The Coin Metrics analyst “found a peculiar transaction that interacted with a contract from the FTT ICO. This 2019 contract *automatically* released 173 Million FTT from the token’s ICO.” Strange, but both organizations are joined at the hip. There might’ve been legitimate reasons.

Then, things took a bizarre turn. “Alameda then sent that *entire* balance to the address of the deployer (creator) of the FTT ERC20, which is controlled by someone at FTX.”

WHAT?

 

The Coin Metrics Analyst’s Theory

According to Lucas Nuzzi, Alameda Research wasn’t immune to the crypto contagion that plagued the space in Q2. In fact, the company might’ve blown up with 3AC, Voyager, and Celsius. “It ONLY survived because it was able to secure funding from FTX using as “collateral” the 172M FTT that was guaranteed to vest 4 months later.” That’s an extremely risky move. It almost seems like FTX didn’t have a choice.

They didn’t, because “the FTT ICO contract vests automatically. Had FTX let Alameda implode in May, their collapse would have ensured the subsequent liquidation of all FTT tokens vested in September.” If the scenario the Coin Metrics analyst poses is real, SBF and company had to do it. And they paid a heavy price for it. “The Alameda bailout likely put a dent on FTXs balance sheet to the point where it was no longer solvent. This would have been fine if the price of FTT didn’t collapse and a bank run ensued.”

This Is Where CZ And Binance Come In

In this scenario, CZ And Binance somehow found out about the deal. And the biggest cryptocurrency exchange by trading volume had a heavy FTT bag. “As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT),” CZ tweeted when he announced they were liquidating their position.

What did this heavy FTT bag mean? The Coin Metrics analyst explains, “As large holders of FTT, they could start deliberately tanking that market to force FTX to face a liquidity crunch.”

And they did.

And then, Binance offered to buy FTX and relieve them of their problems.

Presumably for pennies on the dollar.

A master stroke by CZ and team, if true.

But remember the Coin Metrics’ analyst warning, “Important to note that this is my own personal highly-speculative take on what happened based on these on-chain artifacts.” Don’t go around saying this is exactly what happened, because it might not be. 

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The Binance Vs. FTX War: Here Are The Most Recent Stats & On-Chain Data

Is this the beginning of the end for FTX and Alameda Research? Or will both organizations come out stronger on the other side? As NewsBTC reported, Binance’s CZ smelled blood in the water and announced his exchange was selling their FTT reserves. That created a sort of a bank-run that left FTX in a dangerous position. Are both of the Sam Bankman-Fried-led organizations’ destinies tied to the FTT token? Or will they be fine even if it falls?

In the most recent Bitcoin Magazine Pro report, they describe the current situation as, “a wave of panic taking shape that questions the solvency of both FTX and Alameda Research. As a result, we’ve seen nearly $1 billion in assets and token values fly out of known FTX and Alameda addresses over the last week.” Not only that, both FTT and BNB are falling. And Alameda and FTX are working overtime to keep FTT over $22.

We’ll cover all of that and more, but first, let’s go to another BM Pro report in which they described the situation that led to all of this. A document detailing Alameda Research’s reserves leaked and the whole world learned that the firm held approximately 90% of the total FTT token supply. Their sister company, FTX, issues that coin. And that’s problematic.

“It’s reported Alameda was holding $5.82 billion of FTT on June 30th, while the market cap of FTT at the time of the report was $4.2 billion. This is a result of some of their asset allocation being held in locked altcoins, which, similar to VC investments and employee stock compensation programs, has a locked/vesting period, only this time it’s using smart contracts. It should be noted that Alameda apparently applied a 50% haircut to all “locked” assets, but one could make the case that this is still generous accounting.”

There are really interesting caveats in there.

FTTUSD price chart - TradingView

FTT price chart on FTX | Source: FTT/USD on TradingView.com

FTX Is Down And Binance Is Up

The bank run seems to be on. Wallets associated with FTX are moving funds like there’s no tomorrow. The exchange’s stablecoin balances “have been depleting at a rapid pace as customers move to get funds off the platform.” And that’s not their only worry, they also have to defend the $22 floor for FTT, but we’ll get to that. This is a zero-sum game, so someone has to be winning while FTX is losing. Back to the latest BM Pro report:

“It’s a stark difference to see $451 million in stablecoins flow out of FTX over the last 7 days versus the $411 million that have flowed into Binance. That tells anyone in the market that the exchange giant (Binance), which already has approximately 60% of the volume in the entire space across both spot and derivatives markets, is out for blood and stands to gain during this FTX situation.”

This all might seem like fun and games between two giants, but the reality is this: if FTX falls, the whole crypto market will tumble. And the contagion effect would probably be tremendous and take several companies and projects down with it. “There’s a broader risk to the market here as we see Alameda unwind many other positions across tokens and bitcoin that will be used to raise additional capital,” BM Pro wrote, “we’re just in the beginning stages on what may play out here.

The $22 Level

Why is team Sam Bankman-Fried so determined to defend FTT’s $22 level? Alameda Research’s CEO, Caroline Ellison offered CZ, “if you’re looking to minimize the market impact on your FTT sales, Alameda will happily buy it all from you today at $22!” There’s that number again. Why are they so obsessed with it? According to BM Pro: 

“Alameda would likely not have such a vested interest in defending this level if it was not leveraged. Otherwise, they would let the market fall as much as it wants and simply acquire FTT at a lower price.”

Is that undeniable proof that FTX and Alameda are leveraged and their destinies are tied to FTT? Not really. It suggests it, though. “The exchange rate differential between the FTT price on FTX vs. Binance has pushed to historic highs as Alameda and crew attempt to defend their token. Meanwhile, CZ and an army of speculators have begun to sell and go short FTT.” 

We might be witnessing “a classic speculative attack unfold,” says BM Pro. However, they feel it’s even deeper. “There is a much more important battle going on, and the FTT exchange rate is a matter of solvency for Alameda.” According to analyst Dylan LeClair, the whole situation “feels like I’m watching an emerging market central bank attempting to defend its currency against speculators.”

The question is, can they?

Featured Image by DeSa81 from Pixabay | Charts by TradingView

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Holding FTT And BNB? It Might Be Time For You To Get Out

Cryptocurrencies such as BNB and FTT have been seeing some downside in the last 24 hours. This follows an eventful weekend that has culminated in what has been a clear intention of crypto exchange Binance to begin dumping its FTT holdings. As a result, there is expected to be a reaction from both FTT and BNB when the exchange completes the dumping of its billion-dollar holdings in FTT.

Binance Pulls Out Of FTT

Social media was lit afire when Binance CEO Changpeng Zhao (CZ) said that the crypto exchange had decided to liquidate its FTT position. Now, Binance had been an incubator for the FTX exchange and when the exchange exited, it had received $2.1 billion in stablecoins and FTT tokens, which Binance has held until now.

However, according to CZ, the crypto exchange has decided that it is going to sell off its FTT holdings following recent “revelations”. Binance had already begun its sell-offs with almost $600 million worth of FTT tokens that were moved to the exchange to be sold. 

CZ explained that they were actually looking at ways to sell the tokens while minimizing the impact on the market. The CEO said that the exchange usually just holds tokens that they get, but it had decided to go this way with FTT following what can only be speculated to be glaring red flags about the token or the FTX exchange.

It is no surprise that Binance is choosing to play it safe this time around. The Terra collapse had actually cost the exchange billions of dollars because it held through the worst of it. The exchange’s $2.2 billion worth of LUNA tokens was only worth a couple of hundred dollars once the network collapsed.

FTT Token price chart from TradingView.com

FTX Token struggles at $22 | Source: FTTUSD on TradingView.com

Retaliation Against BNB?

As CZ mentioned in his tweet, the crypto exchange actually holds tokens so it doesn’t seem like they were taking action against competitors. With the selling of its FTT tokens, there is no doubt that this is how it will come off, especially after the offer for FTX to buy the tokens from Binance at a value of $22 per token was reportedly turned down.

Given this, it is expected that FTX would likely retaliate towards the exchange by selling off any BNB tokens that it holds. A development such as this could see both digital assets suffer massive declines in price, which is already being witnessed at this point.

At the time of this writing, FTT and BNB are both down 1.85% and 5.01% respectively in the last 24 hours. As the saying goes, “When elephants fight, it is the grass that suffers”, retail investors will likely bear the brunt of the war between these two giants.

For many, this has signaled an exit point while watching the battle unfold from afar. If it turns into a full-blown war of both exchanges trying to undermine the other, then it will likely be the trigger that pushes the crypto market below its current cycle lows.

Featured image from Bitcoinist, chart from TradingView.com

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