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On November 11, FTX (FTX.com, FTX US, Bankman-Fried’s proprietary trading firm, Alameda Research, and approximately 130 additional affiliated companies) filed for bankruptcy.
Press Release pic.twitter.com/rgxq3QSBqm
— FTX (@FTX_Official) November 11, 2022
The Court approved of the First Day motions and one week later FTX launched a strategic review of their global assets to maximize recoverable value for stakeholders. Omnibus of Hearings are expected to take place on December 16 and a Final Hearing on Certain First Day Motions will be held on January 11.
Right before FTX filed for bankruptcy Alameda Research, its sister company, had withdrawn $204 ml from FTX - Blockchain firm Arkham Intelligence found out:
Arkham analysed flows from FTX US in the final few days before the collapse, finding that Alameda withdrew the most funds, at $204M.
— Arkham | Crypto Intelligence (@ArkhamIntel) November 25, 2022
Below is a diagram of withdrawals to Arkham-identified entities from FTX US.
n.b. this thread regards FTX US assets only, not FTX International. pic.twitter.com/QFPVlVIWhO
By the way, Reuters said that supporting Alameda was among the main causes of the FTX collapse. In the end, Alameda joined FTX and other affiliated companies in bankruptcy.
💡 An interesting fact: hearings showed that FTX owned an $11.5 million stake in one the smallest U.S. banks with just 3 employees - Farmington's bank. It didn't offer online banking or even credit cards. This spring Alameda invested in the bank’s parent company. For a decade, the bank had around $10 million in deposits. In the third quarter this year, deposits jumped to $84 million – 85% of which came from just four accounts, according to the New York Times. How FTX got the authorities to approve to buy a bank and why SBF did it - that’s a question…
Among other victims of the FTX collapse is BlockFi, a centralized hub for the different financial services ranging from taking out a loan, holding cryptocurrency, and managing credit card expenditures using the BlockFi credit card. On the same day that FTX filled for bankruptcy BlockFi which was in line for a potential acquisition by FTX halted withdrawals. On November 28 it announced that it was entering bankruptcy procedure and now has laid off a large portion of its staff.
FTX CEO Sam Bankman-Fried resigned the same day that FTX announced its bankruptcy. John J. Ray III, a corporate turnaround specialist, took over as chief executive. SBF is now presumably in the Bahamas and is getting kind of “deleted” by society: a good example is of a democratic candidate that has returned or given to charity SBF’s donations. This can mean that government doors are closing not only for SBF but for the whole crypto industry.
We’ll observe and keep you updated on future developments of the situation and for now let’s all stay calm and keep our savings in cold wallets…
Read more about this topic here #FTXcollapse
