FTX bankrupt, chopped, examined: a timeline of events
FTX bankrupt, chopped, examined: a timeline of events
Sam Bankman-Frieds 32-billion dollar-ftx empire is now bankrupt and lets the markets collapse-and the saga is far from over.
Since FTX has not withstood a 6 billion dollar banking tower last week, the once powerful brand was one of the worst disasters in the history of the digital assets.
But only six days ago the CEO of Binance, Changpeng Zhao, announced a plan to take over FTX, a business where the world's leading crypto exchange would have absorbed its main competitor.
The following timeline pursues important events that led to the FTX group registering bankruptcy last Friday together with more than 130 subsidiaries and adjacent companies, including the Alameda Research.
9. Nov. - Wednesday: From the bad to worse
The website of the FTX sister company Alameda Research goes offline and reads: "This website is currently private" because it hires the trade with at least one regular counterparty, according to a source of block works.
The Securities and Exchange Commission as well as the Commodity and Futures Trading Commission begin with the examination whether FTX
The rival Binance stock exchange takes its plans to take over FTX according to its “Due Diligence”, which determines that the black hole in the balance of $ 8 billion is not worth it. Bankman-Fried, still FTX CEO, swears in search of external liquidity to push ahead to stuff his leaky ship. He promises "radical transparency" and the desire to complete his customers. At the same time, he announces that Alameda will stop operating on FTX. Later Bankman-Fried tells his employees in a memo that he is Capital rescue package worth around 9.4 billion US dollars by Justin Sun von Tron and StableCoin issuer Tether, reported Reuters. Tether freezes 46 million USD, which FTX kept on the tron blockchain after a request from the law enforcement agencies. Commercial activity allows the daring bond of the stable coins, while Chief Technology Officer Paolo Ardoinino says that the bares flow smoothly. After FTX suspended the payment of digital assets on Tuesday, on-chain data show that the stock exchange dealt with around $ 7.2 million of people residing on the Bahamas where the company has its headquarters on Thursday. The restrictions for users outside the Bahamas cause capital to be made out of strange NFT sales. Bankmann-Fried claims to be re-closed during the rest of the world, was closed Requirements of the supervisory authorities. The Bahamas Securities Commission later denies that this was the case. securities commission addresses ftx declaration on Bahamaische withdrawals pic.twitter.com/ozkwwwicsun - Bahamas' securities commission (@Scbgov_bs) 12. November 2022 The Wall Street Journal reports that Bankman-Fried informs the employees during an investor notification that Alameda ftx is about 10 billion US dollar owes, apparently customer funds. The Securities Commission of the Bahamas freezes FTX's assets and forces the local subsidiary FTX Digital Markets to a so -called preliminary liquidation. Your operating license in the Caribbean state is ended. The branch of FTX, FTX.US regulated by the USA, says that in the end he could hire the trade, even though Bankman-Fried assures the customer that the US company is not financially affected by "this shit show". ftx and dozens of connected companies are declared bankrupt and apply for protection according to Chapter 11 before the Federal Court of Delaware. Bankmann-Fried steps back. The international stock exchanges FTX, FTX.US and Alameda are placed in the hands of the experienced insolvency administrator John J. Ray III, which replaces Bankman-Fried as CEO of FTX. Ray treated Enron in the course of his own bankruptcy renovation. For around 100,000 creditors, Bankman-Fried apologizes for the second time in A Tweet-Thread say that he is still " Details and would soon provide a play-by-play-update. Blockchain-analysis unit elliptic stolen in various tokens from FTX's operational wallets. FTX insiders seem to have saved $ 186 million in front of the attackers by moving the crypto into a cooling room. ftx-insider then share a message on Telegram: "FTX was hacked, all funds seem to be away. FTX apps are malware. Delete them. The chat is open. Do not go to the FTX site because it could download Trojaner." The General Counsel of FTX.us later confirms that non -authorized transactions have taken place. The law firm is now setting off the law enforcement. Kraken Chief Security Officer says the company knows the identity of the attacker because transaction fees for some of the illegal transactions were financed by a octopus account. 3/ In response to this, an active factual test and damage limitation was initiated immediately. We are in contact with the law enforcement authorities and the responsible supervisory authorities and vote with them. (Explanation by John Ray, Chief Restructuring Officer and CEO of @ftx_official ) - Ryne Miller (@_ryne_miller) 12. November 2022 "Over $ 220 million of the tokens were exchanged by decentralized stock exchanges for ETH or DAI - a common tactic used by thieves that try to avoid the confiscation of the stolen assets," wrote Elliptic. of these liquid funds made Robinhood shares 470 million US dollars controlled by a Bankman fried company that was not listed in the bankruptcy registration on Friday. FTX also held $ 5.5 billion in “less liquid” crypto systems and $ 3.2 billion in illiquid shares. Bankman-Fried bought a share of 7.6 % in Robinhood in May and reported reported last week to sell the share with a discount from around 20 % to its current market value to $ 9 per share (Hood is traded on the pre-exchangeable Monday with $ 10 per share). The second largest liquid asset in the FTX trading balance was $ 200 million in cash, which were held at the Alameda Investment company Ledger Prime, without further US dollar credit. In particular, no Bitcoin assets were listed, although Bitcoin liabilities of $ 1.4 billion were maintained. The Bahama authorities say that they have started to work with the country's security supervisory authority to examine the potential Criminal misconduct . Citing to well-known sources, the point of sale claimed that Bankman-Fried had built a back door that allowed him to skip off money from FTX without triggering built-in alarms. Bankman-Fried later said that he was "with the characterization" of the billion-dollar transfer "disagree" and blamed a "confusing internal labeling", which was misunderstood without responding to the details, according to the report. Sam Bankman-Fried, Alameda, FTX, FTX.US did not react immediately to inquiries about comments. Bankman-Fried replied with "???".
2) h - Sbf (@Sbf_ftX) 14. November 2022 In view of the fact that the market has not yet completely recovered from the turbulent upheavals, which were triggered by Terra, Three Arrows, Celsius and Voyager, the bankruptcy of FTX will Schüren, Bo Bai, CEO of the Singapore-compliant crypto-Comp, to block works.
"The decline of FTX will undoubtedly lead to a more precise exam, especially with regard to transparency in the industry." The revelations around Alameda's portfolio are another memory of the fact that the industry is a place for innovations, but still apply fundamental rules of risk management. ” David Canellis contributed to reporting. . . The contribution FTX Bankrupt, Hacked, Investigated: A Timeline of Events is not a financial advice. 10. November - Thursday: FTX hunts according to capital
Only FTX users on the Bahamas can withdraw
11. November - Friday: SBF steps back, FTX goes bankrupt
12. November - Saturday: FTX was chopped for most of his remaining crypto
More details of the FTX balance appear
13. November - Sunday: The Bahama police are examining FTX