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 IIIexpert in the liquidation of companies close to bankruptcy.
It cannot be denied that the situation is very serious, and it has dragged all the problems related to the crypto world with it, bringing them to the surface and starting one of the strongest sectoral crises of the crypto ecosystem.
This sensitive situation is now the talk of the town and has given the world’s largest cryptocurrency holders, exchange founders, cryptocurrency experts, and even members of Congress and Senators a voice and a chance to express their opinions.
While the founder and former CEO of FTX, Fried Sam Bankmanhe said he was sorry a few weeks ago on Twitter, believing he had done something stupid and obviously could have done better, his trading company Alameda Research is also in liquidation.
We have seen that there are many effects linked to the collapse, the domino effect that is affecting many companies, the “collateral” damage is there and it shows. Here is some news regarding FTX, its side effects and its founder Sam Bankman Fried, more closely.
The cryptocurrency world has gone back years and it is FTX’s fault
In a recent interview, the founder of the crypto hedge fund Capital of the three arrows, Su Zhu, has made some very heavy claims about how FTX has wreaked havoc on the cryptocurrency market.
It was inevitable not to compare the collapse of FTX with the implosion of Three Arrows Capital in the summer, but the co-founder and CEO of 3AC defends himself. Explaining that if this summer’s affair shook the market, the FTX crash it devastated him, setting him back years.
“Some industry leaders said the FTX crash set the industry back five years. I think it’s even longer: seven or eight years, maybe even longer if the underlying problems aren’t solved.”
Although Three Arrows Capital took a disastrous fall, suffice it to note that the hedge fund was taken down from $4 billion to 0. Its collapse was not public and impacted FTX itself. But both have provided a way to clear up a lot, the contagion from the collapse of FTX and Three Arrows Capital has driven transparency from firms and brought out the clients’ desire for more transparency from the platforms that are still standing.
Sam Bankman Fried’s parents bought $121 million worth of properties
While the two companies FTX and Alameda Research are in the process of liquidation, a report has recently been made public, according to which 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 luxury villas and seven condominiums in the resort town of Albany, for a value of 72 million dollars.
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, says:
“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’s really at the company.
The bankruptcy process will bring new issues to light, we will discover new things about the FTX affair and we will understand better Fried Sam Bankman and what his intentions were, considered one of the best under 30 talents in the world, today he owes us many explanations.
Justin Sun is evaluating potential asset purchases from the FTX empire
FTX recently announced that it was looking to sell some of its businesses and retool them to raise cash to repay its customers. Sun’s company Tron may be ready to take FTX’s assets off their hands, according to a Wall Street Journal report.
In an interview, Justin Sunfounder 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 as I am already in this type of bankruptcy procedure”.
Furthermore, he added that representatives of the Tron team are present in the Bahamas along with officials from Huobi, a Seychelles-based cryptocurrency exchange. Huobi’s involvement in this process stems from Justin Sun serving as a member of the company’s advisory board. Currently, both Tron and Huobi are in talks with FTX, creating positive expectations for customers of the failed exchange platform. However, the assets Justin Sun seeks to buy are currently at issue in bankruptcy proceedings involving FTX as of Nov. 22.