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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 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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Binance Compliance Officer Under Scrutiny For FTX, Gemini, And Sex Trafficker Associations

In a recent investigative report by the media outlet Unlimited Hangout, serious allegations were made against Noah Perlman, the chief compliance officer of Binance. 

The report highlights Perlman’s alleged ties to the collapse of FTX, the troubled Gemini exchange owned by the Winklevoss twins, and even convicted and deceased sex trafficker Jeffrey Epstein.

If the allegations made by the media outlet prove true, and Perlman is investigated by US authorities, Binance could find itself embroiled in another executive scandal following the departure of former CEO Changpeng Zhao (CZ).

Associations With Epstein And Alleged Fraud 

Unlimited Hangout alleges that Perlman’s father, Itzhak Perlman, a renowned violinist, had flown on multiple occasions on a plane owned by Jeffrey Epstein. Itzhak Perlman also reportedly accompanied Epstein to Michigan’s Interlochen Center for the Arts, where Epstein later built a lodge for him, which was later described as a “lair to target girls.” 

While Noah Perlman served as a federal prosecutor for the Department of Justice’s Special Coordinator for Crimes against Children, these family connections to Epstein raise questions about his associations.

After leaving the Department of Justice, Perlman joined Gemini, the cryptocurrency exchange owned by the Winklevoss Twins, as the chief compliance officer. Although Perlman had left Gemini months before the New York Attorney General filed a lawsuit against the exchange, he had been allegedly “heavily involved” in Gemini’s Earn program, which became the focus of the alleged $1.1 billion fraud. 

As reported by NewsBTC, the lawsuit alleges that certain individuals knew that the program’s partner, Genesis, was financially unstable and withdrew their funds before its collapse.

Per the report, Perlman held the position of chief operating officer at the time, raising suspicions about his role in the alleged misconduct.

Troubled Bank’s Links To Binance Officer And FTX

Perlman’s involvement with Farmington State Bank, later renamed Moonstone, adds another layer of complexity to the alleged wrongdoing cited by Unlimited Hangout.

According to the report, in 2019, Perlman was listed as a director of FBH Corp., the entity that took over the rural bank. Moonstone Bank later garnered attention when Alameda Research, linked to FTX, acquired an $11.5 million stake. 

Sam Bankman-Fried, the former chief of FTX, also reportedly invested $50 million in the bank. However, Moonstone Bank faced regulatory challenges, with the Federal Reserve initiating an enforcement action against it shortly before the Bank of Eastern Oregon acquired its deposits and assets.

Overall, Perlman is at the center of serious allegations concerning his alleged connections with Jeffrey Epstein, the failed Earn program at Gemini, and Moonstone Bank. 

However, it is important to note that these allegations have not been substantiated by any investigations or official connections made by US authorities or other global agencies. 

The claims and allegations put forth by media news outlets require further response from Binance’s executives and investigation by relevant authorities.

There has been no official statement from Perlman regarding these allegations. It remains to be seen how the exchange and Perlman himself will address these claims and provide clarity on the matter.

Binance

Featured image from Shutterstock, 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’s FTT Token Leads Market Gains With 55% Rally, What’s Driving It?

The utility token of the defunct crypto exchange FTX, FTT is one of the top gainers in the last few days, rising 55% in just 48 hours alone. This has led to speculations as to what may be driving the token’s rally. One of them relates to a recent event in the crypto industry. 

FTT Token’s Recent Rally Propelled By Binance News

In a post on its X (formerly Twitter) platform, the market intelligence platform Santiment noted that the second rally for FTT came after the Binance news. The world’s largest crypto exchange and its former CEO Changpeng “CZ” Zhao had both pleaded to criminal charges and agreed to a settlement of over $4 billion in fines.

As to the correlation between both events, Binance and FTX have always been closely knitted in several regards. For one, CZ, in particular, has sometimes been credited for being responsible for FTX’s collapse. Prior to the bank run on FTX, the former executive had made a tweet about his company liquidating their FTT holdings. 

As such, it is believed that Binance, going through this difficult phase, comes off as bullish for the FTT token because of the animosity that the FTX and Binance ecosystem share. Interestingly, while FTT has continued to rally, Binance’s BNB has suffered an inverse fate. BNB is down by over 6% in the last seven days, according to data from CoinMarketCap. 

Sam Bankman-Fried’s Conviction Also Contributed

It is worth mentioning that the FTT rally didn’t just kickstart on the back of the Binance news. FTT’s market value is reported to be about 255% up against Bitcoin in the past 3 weeks. This resurgence began just after the 10 largest wallets began accumulating, with $12.8 million worth of FTT bought by these whales since November 3.

Interestingly, November 3 happens to be a day after FTX’s former CEO Sam Bankman-Fried (SBF), was convicted. The FTX founder was convicted of all seven charges leveled against him. Going by this, it would seem that his conviction was conceived as bullish for these whales who decided to double down on their FTT holdings. 

Another factor that might also be contributing to the token’s resurgence is the talks about FTX making a comeback. The defunct crypto exchange is reported to have suitors who are interested in rebooting it. The Chair of the Securities and Exchange Commission (SEC), Gary Gensler, had also noted that it was a possibility as far as the rules and guidelines are abided by.

At the time of writing, FTT is currently trading at around $4.50, up over 21% in the last 24 hours and up by over 336% in the past month, according to data from CoinMarketCap.

FTX FTT Token price chart from Tradingview.com

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FTX Transfers $150M In Assets, Including Ethereum And Solana, Amid Bankruptcy

Blockchain analytics firm Nansen has recently revealed that wallets associated with bankrupt crypto exchange FTX have transferred approximately $156 million worth of digital assets, including Ethereum (ETH) and Solana (SOL), in a series of transactions over the past week. 

The movement of these funds has raised concerns and attracted the attention of industry experts and investors. Nansen’s report sheds light on the ongoing transfers and provides valuable insights into the extent of FTX’s asset movements.

Bankrupt FTX Wallets Unstake $57 Million Worth Of SOL Tokens

According to the Nansen report, funds from FTX wallets have continued to migrate to various exchanges since the previous update. The report specifies the following notable transactions:

  • 695,000 Perpetual Protocol (PERP) tokens worth $423,000
  • 767,000 Biconomy (BICO) tokens worth $182,000
  • 833,000 Kyber Network (KNC) tokens worth $616,000
  • 108 million TrueFI (TRU) tokens worth $420,000
  • 138,000 Band (BAND) tokens worth $221,000
  • 2.5 million Graph (GRT) tokens worth $273,000
  • 845 Maker (MKR) tokens worth $1.17 million
  • 7.16 million Render (RNDR) tokens worth $17.8 million
  • 10.5 million USD Coin (USDC)
  • 23,000 Polygon (MATIC) tokens worth $15,000
  • 9.5 million Ren (REN) tokens worth $500,000
  • 1.1 million ETH tokens worth $2 million

Additionally, the report highlights that an additional 1.6 million SOL tokens worth $57.6 million have initiated the unstaking process. While these funds have not yet left the associated wallet, their potential movement would bring the total SOL tokens moved by FTX to just under $90 million. 

Moreover, considering the unstaking of SOL and the new assets transferred by FTX to Coinbase and Binance, the total value of funds moved by FTX now stands at $156 million.

Major Transfers Of LINK, AAVE, And MKR Unveiled

Nansen’s previous investigation revealed significant transfers from wallets linked to FTX and Alameda Research, FTX’s trading arm.

These funds were initially withdrawn from FTX and Alameda wallets before being sent to intermediary wallets and eventually deposited into Binance and Coinbase. The report discloses the following noteworthy movements:

  • 2.2 million USD worth of Chainlink (LINK) tokens
  • 1 million USD worth of Aave (AAVE) tokens
  • 2 million USD worth of MKR tokens
  • 3.4 million USD worth of ETH tokens

In addition to these transfers, Nansen discovered that 943,000 SOL tokens, equivalent to approximately $32 million, were moved from the FTX Cold Storage wallet.

Overall, the recent findings by Nansen regarding the movement of funds from wallets associated with the bankrupt crypto exchange FTX have sparked concerns within the cryptocurrency community. 

The report highlights substantial transfers of various digital assets, including ETH and SOL, and provides insight into the scale of FTX’s asset movements. 

FTX

As of the current market conditions, FTX’s native token, FTT, is trading at $1.23. Despite a false breakout on October 23, where the token briefly surpassed $1,360, it has since declined consistently. 

However, over the past 30 days, FTT has maintained a profit margin of 3.7%, signifying relative stability within this time frame.

Featured image from Shutterstock, chart from TradingView.com 

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FTX Transfers $150M In Assets, Including Ethereum And Solana, Amid Bankruptcy

Blockchain analytics firm Nansen has recently revealed that wallets associated with bankrupt crypto exchange FTX have transferred approximately $156 million worth of digital assets, including Ethereum (ETH) and Solana (SOL), in a series of transactions over the past week. 

The movement of these funds has raised concerns and attracted the attention of industry experts and investors. Nansen’s report sheds light on the ongoing transfers and provides valuable insights into the extent of FTX’s asset movements.

Bankrupt FTX Wallets Unstake $57 Million Worth Of SOL Tokens

According to the Nansen report, funds from FTX wallets have continued to migrate to various exchanges since the previous update. The report specifies the following notable transactions:

  • 695,000 Perpetual Protocol (PERP) tokens worth $423,000
  • 767,000 Biconomy (BICO) tokens worth $182,000
  • 833,000 Kyber Network (KNC) tokens worth $616,000
  • 108 million TrueFI (TRU) tokens worth $420,000
  • 138,000 Band (BAND) tokens worth $221,000
  • 2.5 million Graph (GRT) tokens worth $273,000
  • 845 Maker (MKR) tokens worth $1.17 million
  • 7.16 million Render (RNDR) tokens worth $17.8 million
  • 10.5 million USD Coin (USDC)
  • 23,000 Polygon (MATIC) tokens worth $15,000
  • 9.5 million Ren (REN) tokens worth $500,000
  • 1.1 million ETH tokens worth $2 million

Additionally, the report highlights that an additional 1.6 million SOL tokens worth $57.6 million have initiated the unstaking process. While these funds have not yet left the associated wallet, their potential movement would bring the total SOL tokens moved by FTX to just under $90 million. 

Moreover, considering the unstaking of SOL and the new assets transferred by FTX to Coinbase and Binance, the total value of funds moved by FTX now stands at $156 million.

Major Transfers Of LINK, AAVE, And MKR Unveiled

Nansen’s previous investigation revealed significant transfers from wallets linked to FTX and Alameda Research, FTX’s trading arm.

These funds were initially withdrawn from FTX and Alameda wallets before being sent to intermediary wallets and eventually deposited into Binance and Coinbase. The report discloses the following noteworthy movements:

  • 2.2 million USD worth of Chainlink (LINK) tokens
  • 1 million USD worth of Aave (AAVE) tokens
  • 2 million USD worth of MKR tokens
  • 3.4 million USD worth of ETH tokens

In addition to these transfers, Nansen discovered that 943,000 SOL tokens, equivalent to approximately $32 million, were moved from the FTX Cold Storage wallet.

Overall, the recent findings by Nansen regarding the movement of funds from wallets associated with the bankrupt crypto exchange FTX have sparked concerns within the cryptocurrency community. 

The report highlights substantial transfers of various digital assets, including ETH and SOL, and provides insight into the scale of FTX’s asset movements. 

FTX

As of the current market conditions, FTX’s native token, FTT, is trading at $1.23. Despite a false breakout on October 23, where the token briefly surpassed $1,360, it has since declined consistently. 

However, over the past 30 days, FTT has maintained a profit margin of 3.7%, signifying relative stability within this time frame.

Featured image from Shutterstock, 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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FTX Billion-Dollar Fraud: Expert Figures Out Where The Missing $9 Billion Went

The trial of the former CEO of the defunct crypto exchange FTX, Sam Bankman-Fried (SBF), continued on October 18 with the direct examination of the prosecution’s expert witness, Peter Easton, an Accounting Professor who works at the University of Notre Dame. 

Expert Testimony Shows Customers’ Funds Were Stolen

According to a report by Bloomberg, Easton explained that $9 billion in customers’ funds had already gone missing since June 2022, five months before FTX filed for bankruptcy. He specifically alluded to the customers’ deposits, which were made into Alameda Research’s bank accounts. 

Having laid a foundation that Bankman-Fried stole FTX’s customers’ funds through Alameda, the next step in the prosecution’s case was to show that these funds were indeed stolen, and that was the role of Easton, who has an expertise in “penetrating the details of financial statements.” 

He stated that based on deposits made by customers, Alameda was meant to have held $11.3 billion in FTX customers’ funds, but only $2.3 billion was actually in the trading firm’s bank accounts. According to him, these funds were ultimately used for several purposes.

FTX FTT Token price chart from Tradingview.com (Sam Bankman-Fried)

What The Stolen FTX Funds Were Used For

Easton further provided details as to where some of these funds went. He alleged that some of these funds were used to invest in companies like Anthony Scaramucci’s SkyBridge Capital, Lily Zhang’s Modulo Capital, Robinhood, Dave and Anthropic. 

Specifically, he stated that the investment in Modulo was 100% from customers’ funds, with him being able to trace the transaction from FTX’s database.

While giving her testimony, Alameda’s ex-CEO, Caroline Ellison, also revealed that Alameda, with SBF’s permission, used FTX’s customers’ funds to repay its lenders. Easton corroborated this statement as he mentioned that some of the missing funds were used to repay lenders like Celsius, Abra, Maple, and Anchorage. 

His testimony didn’t stop there, though, as, according to him, some of the funds were also used to fund political campaigns, charity foundations, and real estate purchases. Part of these political contributions included the $1 million that FTX’s Director of Engineering Nishad Singh had donated to Mind The Gap (MTG), a Political Action Committee (PAC) that SBF’s mum Barbara Fried co-founded. 

Additionally, $96 million of these customers’ funds is said to have been spent on real estate purchases, of which a property owned by SBF’s parents happens to be among them, going by the evidence tendered by the prosecution. 

The professor mentioned that all these discoveries were made following his analysis of Alameda’s statements, information from the FTX database, documents from lenders, and on-chain data.

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BlockFi CEO’s Key Testimony: Insights Into Alameda’s Financial Stability In FTX Trial

The trial against FTX co-founder Sam Bankman-Fried took an intriguing turn as Zac Prince, the CEO of defunct crypto lender BlockFi, provided testimony in a Manhattan federal courtroom. 

Prince’s appearance provided valuable insights into the intricate relationship between BlockFi, FTX, and Alameda Research.

BlockFi’s Bankruptcy Rooted In Alameda And FTX

According to a Bloomberg report, Prince revealed that BlockFi had substantial exposure to Alameda and FTX, estimated at around $1 billion, at the time of BlockFi’s failure in November 2022. 

Prince asserted that if the loans to Alameda were still in good standing and the funds on FTX were available, BlockFi would not have filed for bankruptcy. This statement suggests that BlockFi’s financial troubles were closely tied to the collapse of Alameda and FTX.

Prince’s testimony diverged significantly from Caroline Ellison, the government’s star witness, who portrayed Bankman-Fried as the mastermind behind a fraudulent scheme using FTX customer funds for speculative trading at Alameda. 

Prince’s account positioned BlockFi as a victim of Bankman-Fried’s alleged schemes, claiming that BlockFi made loans to Alameda based on misleading balance sheets. 

Defense lawyers sought to emphasize that BlockFi willingly provided the loans to Alameda, with knowledge of the associated risks.

Creditors Accuse BlockFi Of Inadequate Due Diligence

Prince discussed BlockFi’s due diligence process regarding Alameda’s collateral, comprised of tokens affiliated with FTX. The judge requested plainer terms during Prince’s explanation, prompting an analogy using car loans. 

Per the report, the prosecution questioned the adequacy of BlockFi’s due diligence, as creditors accused the company of failing to recognize warning signs before offering substantial loans to Alameda.

Prince’s testimony highlighted that providing “unaudited balance sheets” is an industry norm for borrowers seeking loans. The defense sought to establish that BlockFi knew the risks of lending to Alameda and acted within industry norms.

Zac Prince’s testimony in the trial against Sam Bankman-Fried provided a deeper understanding of the intertwined relationships within the crypto industry. BlockFi’s exposure to Alameda and FTX and its subsequent bankruptcy offered insights into the potential repercussions of alleged fraudulent activities. 

The differing narratives presented by the prosecution and defense underscore the complexities of the case. As the trial unfolds, the court will continue to examine the details surrounding BlockFi’s lending practices and the extent of Bankman-Fried’s involvement in the alleged schemes.

It is important to note that BlockFi can no longer be utilized for crypto-related activities, as the company declared bankruptcy and suspended withdrawals in November 2022. The bankruptcy filing indicates that BlockFi owes between $1 billion and $10 billion to over 100,000 creditors.

FTX

Featured image from NBC, chart from TradingView.com

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Alameda Research Accused Of Bribing Chinese Officials To Recover $1 Billion In Exchange Accounts

During the trial of Sam Bankman-Fried, the founder of crypto exchange FTX, shocking revelations emerged from the testimony of former Alameda Research CEO Caroline Ellison. 

According to a TechCrunch report, Ellison testified that the crypto trading firm paid Chinese officials to unlock their Alameda trading accounts on OKX and Huobi in China.

Judge Lewis Kaplan clarified that Bankman-Fried was not charged with bribery in this case. Still, the evidence was presented to demonstrate trust, confidence, and motive between Bankman-Fried and Ellison.

Alameda Research Former CEO Exposes Hidden Payments To Chinese Officials

According to Ellison’s testimony, while Bankman-Fried was CEO in 2020, the accounts valued at approximately $1 billion were frozen. 

In November 2021, Bankman-Fried claimed that a colleague, David Ma, who had connections in China, found a way to unfreeze the accounts. 

Ellison, who had become co-CEO of Alameda by then, made crypto transfers totaling around $100 million to $150 million to reopen the accounts, unaware that the payments were made to Chinese officials. 

Ellison stated that Bankman-Fried and Sam Trabucco instructed her through a Signal chat to make the payments.

Before the accounts were reopened, Ellison revealed that Alameda employees explored various strategies to unlock the accounts, including involving lawyers and government officials. 

Ellison testified that they even considered using Thai prostitutes to open accounts on the exchanges to facilitate fund transfers, but these efforts were unsuccessful.

One Alameda trader, “Handi,” resigned in early January 2022 due to her objection to paying bribes to Chinese officials, as her father held a government position. 

Courtroom Clash

Ellison testified that Handi had a heated argument with Bankman-Fried about the matter, during which he allegedly told her to “shut the fuck up.” A month after Handi’s resignation, Trabucco asked in a Signal chat if Handi’s father had immediately reported them, to which Bankman-Fried responded with “lol.”

Ellison shared a list with prosecutors containing notes, one of which referred to a payment of “150m from the thing?” about the money transferred to regain the accounts. 

Per the report, Ellison explained that she did not want to explicitly state in writing that the payment was made to China to unlock the accounts, fearing that it could be leaked and used against Alameda Research in court.

Bankman-Fried’s defense lawyer, Mark Cohen, attempted to strike Ellison’s statement about avoiding written evidence of the payments, but Judge Kaplan overruled the request.

The trial continues to uncover new details and allegations, shedding light on the actions and motivations of the individuals involved, and the cryptocurrency community eagerly awaits further developments and the subsequent outcome of the trial.

Alameda Research

Featured image from Shutterstock, chart from TradingView.com 

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No Love For FTX: Ex-Girlfriend Delivers Scathing Testimony Against Sam Bankman-Fried

The trial of the former CEO of the defunct crypto exchange FTX, Sam Bankman-Fried (SBF), resumed on October 10. As expected, the prosecution called Alameda Research’s ex-CEO and SBF’s ex-girlfriend, Caroline Ellison, to testify against the defendant.   

Ellison Does More Damage To Sam Bankman-Fried Defense

According to a thread on the X (formerly Twitter) platform by Inner City Press, which was present at the trial, Ellison confirmed what was already known as she stated that she and the defendant dated for a couple of years with their on-and-off relationship, beginning in the summer of 2020. 

However, any affection or feelings that she may have had for the defendant didn’t seem to hinder her as she lived up to the hype as the prosecution’s star witness, providing key insights into how Sam Bankman-Fried allegedly misappropriated FTX’s customers’ funds through Alameda which she headed before its collapse. 

During her testimony, she admitted that she had committed fraud alongside the defendant. Specifically, she stated that Sam Bankman-Fried directed her to commit these crimes. As to her involvement, she collaborated Wang’s testimony while stating Alameda (and her, by extension) took “several billions of dollars” from FTX customers and used these monies for investments. 

Meanwhile, Ellison confirmed that Sam Bankman-Fried was the one who set up the systems and directed the trading firm to take the money. Besides using FTX’s customers’ funds for investments, Alameda also took around $14 million to repay its lenders. She also manipulated Alameda’s balance sheets, making the firm look risky to potential lenders. 

FTX FTT Token price chart from Tradingview.com (Sam Bankman-Fried ex-girlfriend)

Prosecution Uses Ellison To Drive Home Major Allegations

In its opening statement, the Prosecution alleged that Sam Bankman-Fried diverted customers’ fiat deposits to a bank account linked to Alameda, which Ellison confirmed on the stand. She stated that FTX received money into Alameda’s bank accounts between 2021 and 2022. The total sum deposited was between 10-20 billion dollars. 

Alameda used some of these deposits to repay loans, investments, and stablecoin conversions like USDC. According to her, this summed up to about $2 billion. It didn’t stop there, though, as the trading firm used the other money for other Alameda-related purposes.

Sam Bankman-Fried and his lawyers have, at different times, tried to lay a foundation that SBF wasn’t in charge of Alameda and didn’t know what was going on at the trading firm after he stepped down as the CEO.

However, Ellison rebutted this on the stand as she stated that things didn’t change much, even when she became the co-CEO alongside Sam Trabucco, as she checked everything with Sam Bankman-Fried and directly reported to him. He also had the power to fire her. 

Wire fraud on lenders to Alameda Research and conspiracy to commit wire fraud on lenders to Alameda Research is part of the seven charges brought against SBF. As such, Ellison’s testimony is deemed critical (as someone with first-hand knowledge) in the prosecution’s bid to prove these crimes beyond reasonable doubt. 

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Bankrupt FTX Exchange Turns Its Attention To Employees, Here’s How Much It Wants

It’s been almost a year since the collapse of FTX, but the failed crypto exchange continues to be surrounded by drama. In a flurry of moves to claw back funds for investors, FTX lawyers are now going after employees of Salameda Ltd. 

According to court filings, the employees of Salameda – a Hong Kong-incorporated entity allegedly controlled by former FTX CEO Bankman-Fried, named as defendants were prioritized over other customers as many raced to withdraw their assets from the exchange before its imminent crash on November 11, 2022. 

FTX Wants $150 Million Back

The filing alleges Michael Burgess, Matthew Burgess, Kevin Nguyen, and Darren Wong, all former employees of Salameda, fraudulently withdrew assets in their FTX accounts just hours before bankruptcy. Court filings suggest that while the defendants worked for Salameda, they were effectively employees of the FTX Group, as they worked in senior-level roles at FTX Group companies. 

Before its imminent crash, FTX had been under public scrutiny as many investors had concerns about the exchange’s liquidity and solvency. This prompted many FTX.com and FTX US customers to make withdrawal requests leading up to billions of dollars. 

As the backlog grew, many had to wait for days for their withdrawals to be processed, with some not receiving their money before the exchange filed for bankruptcy. However, court documents show that the defendants received the benefit of withdrawals ahead of other customers due to their connections to FTX Group executives. 

Personal messages show one of the defendants, Matthew Burgess, urging other employees to expedite a pending withdrawal request for $73 million from one of Michael Burgess’s accounts on the exchange.

The defendants were able to withdraw $157.3 million based on pricing as of August 31, 2023, with the majority of those coming withdrawn on or after November 7, 2022. FTX attorneys are now demanding the full amount be returned, arguing that the funds were improperly transferred to the defendants without the required procedures being followed.

Trying To Recover

Since filing for bankruptcy in November 2022, FTX has filed several lawsuits hoping to claw back money to pay some of its investors and customers. The exchange’s attorneys filed a similar case in July, as it went after executives of its European subsidiary in a bid to recover $323 million. 

Lawyers recently went after Sam Bankman-Fried’s parents, accusing them of misappropriating funds from the exchange while it was still in operation. However, the parents, both law professors at Stanford Law School, dismissed the claims as completely false. Sam Bankman-Fried is set to be tried in court starting on October 3 for eight charges brought against him. 

FTX FTT Token price chart from Tradingview.com (Employees)

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Ex-Alameda Employee Claims Firm Triggered 87% Bitcoin Price Plummet In 2021

In a recent disclosure, a former employee of Alameda Research, a trading firm led by Sam Bankman-Fried, has unveiled crucial information regarding the dramatic 87% plummet in Bitcoin (BTC) value during 2021. 

The incident, which occurred on October 21, 2021, witnessed BTC’s price on Binance.US nosedive from approximately $65,760 to $8,200 within a short period.

Insider Details Of Bitcoin Plunge And Alleged Manual Trading Error

The ex-employee, Baradwaj, alleged that the trading firm was directly responsible for the sudden price drop, attributing it to a “manual trading error” rather than solely relying on algorithmic trading. 

Baradwaj claimed that a trader at Alameda Research inadvertently entered an incorrect decimal while attempting to sell a block of BTC in response to breaking news. 

Consequently, the trade was executed at an extraordinarily low price, resulting in a drastic crash.

Highlighting Alameda’s trading operations, Baradwaj revealed that the firm primarily employed semi-systematic strategies, where traders fine-tuned algorithms to execute trades automatically at high frequencies. 

However, manual trades were occasionally employed in instances of system bugs or arbitrage opportunities on platforms where automated trading had not been implemented.

Unlike automated trading, which adhered to sanity checks and market prices, manual trades were discretionary and prone to human error. Unfortunately, an Alameda trader’s mistake triggered a chain reaction on that fateful day in October. 

The erroneous trade caused Bitcoin’s price to plummet from its peak of $65,000 to as low as $8,000 on certain platforms before swiftly recovering through the actions of arbitrageurs.

The incident created a stir on social media, with traders and news outlets scrambling to understand the sudden price movement. Binance.US, the platform at the center of the flash crash, issued a statement attributing the event to a bug in the trading algorithm of one of their institutional traders.

Baradwaj further states that the losses incurred by Alameda Research were substantial, amounting to tens of millions. Still, due to the genuine nature of the mistake, the firm took immediate action to enhance sanity checks for manual trades. 

This incident exposed a vulnerability in Alameda’s risk management practices, prompting implementing “robust measures” to prevent similar occurrences in the future.

The former employee shed light on the working culture at Alameda, characterized by a philosophy of moving fast to capitalize on opportunities, even if it occasionally resulted in unforeseen costs or vulnerabilities. 

This approach, championed by Sam Bankman-Fried, shaped the culture at Alameda Research and the now-bankrupt crypto exchange FTX.

For nearly two years, the BTC flash crash incident remained a puzzle to the public, leaving many wondering about the cause behind such a significant price drop. With the revelations made by Baradwaj, the veil has been lifted, providing valuable insights into the events that unfolded behind the scenes.

Bitcoin

As of this writing, the largest cryptocurrency in the market, BTC, trades at $26,600, down by over 2.1% in the 24-hour time frame. 

Featured image from iStock, chart from TradingView.com 

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Is Binance CEO Changpeng Zhao To Blame For FTX Collapse?

In the space of one week, FTX had gone from being the second-largest crypto exchange by trading volume to being bankrupt. This swift move from being ‘okay’ to being in ‘hot water’ has shown just how uncertain things can be in the crypto market. Since it happened, there has been some finger-pointing as participants in the space look for someone to blame, and some of those fingers have been pointed at Changpeng Zhao.

Is CZ The Cause?

The bank run on the FTX crypto exchange had actually started when Binance CEO Changpeng “CZ” Zhao made it public that the exchange was planning to sell its FTT holdings. What would follow was a rollercoaster couple of days that would end in a bankruptcy filing on the part of FTX. But the question remains, did CZ really cause this?

At first glance, it would look as if CZ had actually intended to trigger a bank run on FTX, especially given their public Twitter beef. However, with recent developments, the only thing that could be remotely true is that CZ had accelerated an inevitable collapse.

With an around $9 billion hole, there were bound to be issues with the company sooner or later. Add in the fact that there were already red flags such as Sam Bankman-Fried trying to raise more funds for the exchange and Alameda hemorrhaging money, the die was already cast.

As for CZ, the decision to sell FTT tokens was always a double-edged sword. Yes, the CEO could have quietly sold the tokens but it would have eventually been made public and Binance would be accused of dumping on retail secretly. The second option, which was to openly sell the tokens, was just the last nail in the coffin for an already dying FTX. It was a lose-lose situation.

FTX Token price chart from TradingView.com

FTX Not Doing Any Favors

The newly appointed CEO of FTX, John Ray III has already gone to work and the findings have been nothing short of catastrophic. Ray, who had helped energy trader Enron navigate bankruptcy in the early 2000s would go on to say that he had never seen anything like FTX in his career. The level of incompetency at the crypto exchange apparently shocked the Wall Street lawyer so much that he tagged it ‘unprecendented.’

As more information about FTX emerges, it is not hard to see why Ray would say that. From house-buying sprees for FTX employees to executives taking personal loans worth billions of dollars from Alameda Research, how FTX was run is nothing short of a fraudulent company.

Currently, there are reportedly more than 1 million creditors who have been unable to get their funds from FTX. The billions of dollars are nowhere to be found as the exchange enters into full bankruptcy mode. It has also drastically reduced trust in the crypto market. Self-custody is now more popular than ever as investors scramble to put their coins in cold storage.

Featured image from Bloomberg, chart from TradingView.com

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Alameda-Backed Tokens Suffer As FTT Fights To Stay Alive

In the wake of the FTX decline, the official token of the crypto exchange, FTT Token, has suffered a massive blow in the market. In the three days since Binance’s announced its intention to sell off its FTT, the token has recorded double-digit losses. However, the losses have not just been localized to one token, the general crypto market has suffered for it, but the worst of it has been reserved for the tokens Alameda Research has invested in.

FTT Token Slumps

In what has been a shocking development for the entire crypto space at large, FTT Token has crashed more than 80% in a matter of days. The token which was backed by the 2nd largest crypto exchange has continued to suffer significant setbacks.

In just the last 24 hours alone, the price of FTT is down more than 70%. The token is now trading at levels not seen since 2020. It has now also hit a new two-year low, making it one of the worst-performing coins of 2022.

The decline looks eerily similar to that of the LUNA token following the collapse of the Terra network. In the same vein, the cryptocurrency has lost billions of dollars off its market cap and is currently sitting at a fully diluted market cap of $1.5 billion.

FTT (FTX) toke price chart from TradingView.com

FTT token trading at $4.459 | Source: FTTUSD on TradingView.com

Interestingly, the trading volume of FTT is up over 130% in the last 24 hours as traders try to take advantage of the token. Short traders have obviously enjoyed the most profit from their activities as FTT’s price dropped from $19 to $3 in a matter of hours.

Alameda Tokens Not Left Out

Alameda Research was one of the most active firms when it comes to crypto investments, which means they had their hands in a lot of pots in the space. As FTX is being brought to its knees, these other tokens have felt the impact of such a collapse.

Solana (SOL) which Alameda is vocally a backer of has been hit the worst of all tokens besides FTT that the firm holds. In the last 24 hours alone, SOL price is down more than 34%. The same is the case for Lido DAO (LDO) which has declined 23% in the last day. 

Alameda reportedly holds 100 million BitDAO (BIT) tokens and the coin is down 15% in the last 24 hours. 1inch Network has also suffered a similar fate, although to a lesser extent with only 7% in losses in the last day. All DeFi protocols that Alameda is invested in including MobileCoin, Serum, and Liquidity are mostly down double-digits as well.

FTX was an investor in the recently launched Aptos blockchain and the token has not been left out of the bloodbath. APT is down 30% in the last day as its price has declined to $4.47 at the time of this writing. 

Featured image from Currency.com, chart from TradingView.com

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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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