The current situation of FTX: the latest news after the collapse
The current situation of FTX: the latest news after the collapse

The current situation of FTX: the latest news after the collapse

By Andrea Porcelli - 23 Nov 2022

Chevron down

It has now been weeks since the collapse of FTX, one of the largest exchange platforms. Now close to bankruptcy, placed in the hands of John J Ray III, an expert in liquidating companies close to bankruptcy. 

There is no denying that the situation is very serious, and it has dragged with it all the problems related to the crypto world, bringing them to the surface and initiating one of the strongest sectoral crises in the crypto ecosystem. 

This delicate situation is now the talk of the town, and has given the world’s largest cryptocurrency holders, exchange founders, crypto ecosystem experts, and even congressmen and senators a voice and a chance to voice their opinions. 

While the founder and former CEO of FTX, Sam Bankman Fried, said he was sorry a few weeks ago on Twitter, believing he had done a foolish thing and obviously could have done better, his trading company Alameda Research is also being liquidated. 

We have seen that the effects related to the collapse are many, the domino effect that is affecting quite a few companies, the “collateral” damage is there and can be seen. Here is some news concerning FTX, its side effects, and its founder Sam Bankman Fried, more closely. 

The crypto world has gone back years, and it’s FTX’s fault

In a recent interview, the founder of crypto hedge fund Three Arrows Capital, Su Zhu, made some very heavy claims about how FTX devastated the crypto market. 

It was inevitable not to compare FTX’s collapse with Three Arrows Capital’s summer implosion, but the co-founder and CEO of 3AC defends himself. Explaining that if this summer’s affair shook the market, the FTX collapse devastated it, taking it back years.

“Some industry leaders have said that the FTX collapse has set the industry back five years. I think it is even longer than that: seven or eight years, maybe even longer if the underlying problems are not solved.”

Although Three Arrows Capital had a disastrous fall, it is enough to note that the hedge fund was brought down from $4 billion to 0. Its collapse was not public and impactful on the same level as FTX. But both have provided a way to make many things crystal clear, the contagion of the collapse of FTX and Three Arrows Capital has targeted transparency on the part of the firms, and it has brought out the desire of clients for more transparency from the platforms that are still standing. 

Sam Bankman Fried’s parents purchased properties worth $121 million 

While the two companies FTX and Alameda Research are being liquidated, a report has recently been made public, showing that the parents of the well-known founder of these companies SBF, have purchased properties in the Bahamas over the past two years, worth $121 million. 

We are talking about 19 properties, including luxurious villas and seven condominiums in the resort community of Albany, worth $72 million. 

The report documents revealed that these funds were to be used as “residences for key personnel.” 

Platform attorney James Bromley, of the law firm Sullivan & Cromwell, states:

“FTX was controlled by inexperienced and unsophisticated individuals, What we have here is an international organization led by Sam Bankman-Fried as a personal fiefdom.”

These words emphasize that the bankruptcy process will provide an opportunity to see what is really in the company.

The bankruptcy process, will bring new issues to light, we will find out new things about the FTX affair and get a good understanding of Sam Bankman Fried and what his intentions were, considered one of the top under-30 talents in the world, he owes us a lot of explanations today. 

Justin Sun is considering potential asset purchases from the FTX empire

FTX recently announced that it was looking to sell some of its assets and reorganize these in order to recover money to repay its clients. Sun’s company, Tron, may be ready to take FTX’s assets out of their hands, according to a Wall Street Journal report.

In an interview, Justin Sun, founder and CEO of Tron, said:

“We are open to any kind of agreement. I think all options are on the table. Right now we are evaluating the assets one by one, but as far as I understand the process will be long since they are already in this kind of bankruptcy procedure.”

In addition, he added that representatives of the Tron team are present in the Bahamas along with officials from Huobi, a crypto exchange based in Seychelles. Huobi’s involvement in this process stems from the fact that Justin Sun acts as a member of the company’s advisory board. Currently, both Tron and Huobi are in negotiations with FTX, creating positive expectations for customers of the failed exchange platform. However, the assets Justin Sun seeks to purchase are currently at issue in the bankruptcy proceedings involving FTX since 22 November. 

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