Monday, November 28, 2022

FTX implodes - billions into the ether - update IV

Crypto firm BlockFi has filed for bankruptcy. The crypto company, which offers a trading exchange and interest-bearing custodial service for cryptocurrencies, was one of many firms to face serious liquidity issues after the implosion of FTX. The New Jersey-based company had already halted withdrawals and admitted that it had “significant exposure” to bankrupt FTX and Alameda Research.

Employees at FTX received loans from Alameda, including $543m to head of engineering Nishad Singh and $55m to head of FTX digital markets Ryan Salame.
The company tasked with locking down assets of FTX said they've secured US$740m. The 'digital assets' are locked in what is known as 'cold storage'. The trouble is upwards of $10b has evaporated. The Turkish government announced it seized the assets in its country belonging to FTX, and Sam Bankman-Fried and others will be charged with crimes including money laundering, market manipulation and fraud. FTX.TR had over 110k users and processed $600m per month. Alameda Research, the trading arm of Sam Bankman-Fried, loaned him and other companies under his control $3.3b. $2.3b went to also bankrupt Paper Bird Inc., which he owns a majority stake in. Among other things, Bankman-Fried acculmulated $300m in Bahamas real estate.
FTX was a cryptocurrency exchange, FTX.US, its U.S. affiliate. In June 2021, FTX raised $1b at an $18b valuation from investors like Paradigm, SoftBank and Sequoia Capital. Three months later, FTX brought in $421m, pushing its valuation to $25b, this time from Singapore-government owned investment firm Temasek, Tiger Global Management and the Ontario Teachers’ Pension Plan. The valuation was $32b. That number is now zero.
FTT tokens Here
Ontario Teachers’ Pension Plan invested a total of $95m between FTX and FTX U.S. in late 2021 and early 2022. US authorities are investigating Bankman-Fried as well as FTX. The bloom is surely off the crypto rose now. Bitcoin slumped as much as 8% to $16.6k, exactly one year from it's $69k top.

All official FTX Group bankruptcy documents filed with the U.S. Bankruptcy Court can be found online at