While the flames of the FTX crash burn the crypto market, people are coming up with various allegations to explain the reasons for the demise of crypto exchanges. can cause But it could also shed light on ongoing investigations.
Reuters’ latest allegation alleges that FTX used customer funds to pull Alameda Research out of bankruptcy. The report also cited Binance’s withdrawal from his FTX acquisition as an unsuccessful attempt to save the cryptocurrency.
Plus a message from FTX CEO Bankman-Fried coby the podcaster It leaked on Twitter. The statement clarified that Bankman-Fried was confused about how to resolve FTX’s issues. .
FTX may be prone to bankruptcy
another Twitter post From an account addressed to Austin Capital as sharing further rumors. The post claimed that an FTX employee turned a blind eye despite being aware of the company’s illegal practices.
The tweet went on to claim that the employee is now depressed about FTX.In response to this allegation, a member of the crypto community retweeted, stating that the employee deserves to go to jail if they knew about the crime.
Meanwhile, documents have leaked showing that FTX has up to $1.3 billion in assets.Trustnodes reports that the spreadsheet documents appear to be from a blockchain DApp called Zaper.
More reports are coming in about the current state of the collapse of cryptocurrency exchanges. Some anonymous individuals told Reuters that FTX recorded his $6 billion withdrawal. Bloomberg also quoted an unnamed source and said the cryptocurrency exchange may file for bankruptcy.
The Wall Street Journal also reported that a person familiar with the FTX issue claimed the government was investigating the cryptocurrency exchange.
What’s happening with the crypto market?
The FTX liquidity crisis has had a cascading effect on the cryptocurrency market. The market is currently in chaos with massive losses. Prices for most cryptocurrencies, including Bitcoin, are at all-time lows as investors worry about the fate of the industry.
Reports claim the trouble started with Alameda’s leaked balance sheet showing excessive exposure to FTT. This has prompted investors to withdraw their holdings from digital asset exchanges.
Reports are negative for digital assets, but some community members are bullish about Bitcoin’s future. according to According to crypto analyst Michael van de Poppe, things will turn around later.
Citing Terra, FTX, and Mt. Gox, the crypto analyst said mistakes need to be fixed to improve the system. However, he concluded his statement by stating that “Bitcoin and other digital assets will live on.”
Featured image from Pixabay, chart from TradingView.com