It’s an ongoing debate that seems to have gotten more heated over time. Filings for bankruptcy have revealed that FTX founder Sam Bankman-Fried received a loan of $3.3 billion from Alameda Research.
One of the most prominent global marketplaces to buy and sell cryptocurrencies has been brought down by this scandal. The cryptocurrency market has been annihilated by the FTX spiral. The now-infamous ex-CEO has fallen from grace more spectacularly than anyone else.
Binance is planning to liquidate FTT tokens, but Sam Bankman-Fried says that this is not the case.
Alameda Research loaned billions to SBF
Sam Bankman-Fried is the most infamous figure in the history of the cryptocurrency industry. For many years, his reputation represented the steady march of progress in the industry. One of the most prominent villains in its history is now often associated with him.
In the history of market crashes, nothing has come close to the FTX one. Due to the platform’s sinking native token and the resulting liquidity crisis, several acquisition attempts failed before the platform filed for bankruptcy in the spotlight.
Bankman-reputation Fried’s was severely damaged by revelations that the company had mishandled customer money. The news spread that FTX customer funds were being used by Alameda Research to make high-stakes bets.
There appears to have been more to the controversy surrounding the FTX sister platform than that. Bankruptcy documents filed under Chapter 11 reveal that Alameda Research lent $3.3 billion to Sam Bankman-Fried.
The documents reveal that Alameda Research extended credit to Bankman-Fried. The biggest mystery is why they were created. Although this question has not been answered at this time, the truth will eventually come to light.
The FTX collapse will be investigated at a hearing scheduled for December by the U.S. House Committee on Financial Services. What really needs to be scrutinized, though, is how SBF employed assets and his trading platforms.
The unprecedented nature of this time means that its negative impact on the cryptocurrency industry cannot be overstated. However, there is reason to believe that the market’s negative reaction will soon change. One positive side effect of these changes has been increased openness. Finally, the congressional hearing against SBF and FTX should provide the much-needed openness.
Source: Watcher.guru
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