{"id":1735791,"date":"2022-11-12T06:04:18","date_gmt":"2022-11-12T11:04:18","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1735791"},"modified":"2022-11-12T06:18:05","modified_gmt":"2022-11-12T11:18:05","slug":"crypto-platform-ftx-goes-bankrupt-dem-megadonor-boss-resigns","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/crypto-platform-ftx-goes-bankrupt-dem-megadonor-boss-resigns\/","title":{"rendered":"Crypto Platform FTX Goes Bankrupt, Dem Megadonor Boss Resigns"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcrypto-platform-ftx-goes-bankrupt-dem-megadonor-boss-resigns%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1735791&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>FTX Group, a collection of some 130 companies behind the cryptocurrency platform FTX, has filed for bankruptcy, and its boss, Sam Bankman-Fried, has quit.<\/p>\n<p>The group has initiated voluntary bankruptcy proceedings under Chapter 11 in the District of Delaware, according to a\u00a0<a href=\"https:\/\/twitter.com\/FTX_Official\/status\/1591071832823959552?s=20&#038;t=L7r6fRpGz5o6lw3At4EB2Q\">press release<\/a>\u00a0on Nov. 11.<\/p>\n<p>Bankman-Fried, who has been replaced in his role as CEO by John J. Ray III, will remain to assist with an orderly transition, as will \u201cmany employees\u201d of FTX Group in various countries.<\/p>\n<p>\u201cThe immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders,\u201d Ray said in a statement.<\/p>\n<p>The bankruptcy proceedings cover Bankman-Fried\u2019s crypto hedge fund Alameda Research and FTX US, but exclude subsidiaries FTX Australia Pty., FTX Express Pay Ltd., and several others.<\/p>\n<p>The bankruptcy marks a stunning downfall for Bankman-Fried, who said in a <a href=\"https:\/\/twitter.com\/SBF_FTX\/status\/1591089320290816000?s=20&#038;t=cjndfgv-AoDiD5DlYFK9lw\">series of posts<\/a> on Twitter that he was \u201cshocked to see things unravel the way they did.\u201d<\/p>\n<p>\u201cThis doesn\u2019t necessarily have to mean the end for the companies or their ability to provide value and funds to their customers chiefly,\u201d he wrote, apologizing for how things have developed and holding out hope for finding a way to \u201crecover.\u201d<\/p>\n<p>Bankman-Fried on <a href=\"https:\/\/twitter.com\/SBF_FTX\/status\/1590709166515310593?s=20&#038;t=4VkxP7vfi7W3CiRijGPNpw\">Thursday admitted<\/a> he had \u201c[expletive] up\u201d and said he was \u201csorry\u201d for a number of missteps managing the crypto platform.<\/p>\n<p>\u201cThe full story here is one I\u2019m still fleshing out every detail of, but as a very high level, I [expletive] up twice,\u201d he wrote in a post on Twitter.<\/p>\n<p>Once valued at $32 billion, FTX was seen as one of the more stable players in the loosely regulated crypto industry.<\/p>\n<h2>\u2018When It Rains, It Pours\u2019<\/h2>\n<p>One mistake, Bankman-Fried said, was underestimating margin on users\u2019 accounts. It\u2019s a flub that snowballed when FTX users rushed to withdraw their deposits, sparking a liquidity crunch.<\/p>\n<p>The run was triggered when Changpeng Zhao, CEO of its main rival, Binance,\u00a0<a href=\"https:\/\/twitter.com\/cz_binance\/status\/1589283421704290306?s=20&#038;t=UNifiI_5J5BXj8xmKsI5Dw\">posted messages<\/a> on Twitter over the weekend questioning the stability of its operations and announcing it was liquidating is holdings of FTT, a token put out by FTX.<\/p>\n<p>\u201cWe will try to do so in a way that minimizes market impact. Due to market conditions and limited liquidity, we expect this will take a few months to complete,\u201d <a href=\"https:\/\/twitter.com\/cz_binance\/status\/1589283426028642305?s=20&#038;t=UNifiI_5J5BXj8xmKsI5Dw\">Zhao said<\/a>.<\/p>\n<p>But FTX users rushed for the exits. Bankman-Fried <a href=\"https:\/\/twitter.com\/SBF_FTX\/status\/1590709174572572675?s=20&#038;t=4VkxP7vfi7W3CiRijGPNpw\">said that<\/a>\u00a0on Sunday, the exchange experienced around $5 billion in withdrawals, the biggest amount \u201cby a huge margin.\u201d<\/p>\n<p>\u201cBecause, of course, when it rains, it pours,\u201d he said.<\/p>\n<p>On Monday, Bankman-Fried was scrambling to raise money, even approaching Binance for help.<\/p>\n<p>\u201cThis afternoon, FTX asked for our help. There is a significant liquidity crunch,\u201d Zhao said in a post on Twitter.<\/p>\n<p>Bankman-Fried and Zhao both later announced that Binance had reached a tentative deal to buy FTX\u2019s businesses located outside the United States, tossing FTX a lifeline.<\/p>\n<p>But after conducting due diligence, Zhao later reversed his offer.<\/p>\n<p>\u201cAs a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged U.S. agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com,\u201d the Binance account on Twitter stated in a post.<\/p>\n<p>Federal investigators are reportedly looking into whether FTX.com misused customer funds, and are probing ties between the platform and Bankman-Fried\u2019s other companies, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-11-11\/ftx-s-sam-bankman-fried-faces-sec-probe-as-his-empire-crumbles\">according to Bloomberg<\/a>.<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-tom-ozimek\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/WEB_TomOzimek-_1.jpg\" alt=\"Tom Ozimek\" \/><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Tom Ozimek has a broad background in journalism, deposit insurance, marketing and communications, and adult education. The best writing advice he&#8217;s ever heard is from Roy Peter Clark: &#8216;Hit your target&#8217; and &#8216;leave the best for last.&#8217;\n<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>FTX Group, a collection of some 130 companies behind the cryptocurrency platform FTX, has filed for bankruptcy, and its boss, Sam Bankman-Fried, has quit.The group has initiated voluntary bankruptcy proceedings<\/p>\n","protected":false},"author":1,"featured_media":1696806,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1735791","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1735791","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1735791"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1735791\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1696806"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1735791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1735791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1735791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}