Sam Bankman-Fried and the Spectacular Fall of his Crypto Empire

Finance

By Aahil

November 2: CoinDesk publishes an article revealing that at least a third of Alameda's $14 billion balance sheet is in FTT, coined FTX.

The CEO of Binance tweeted that his firm will be liquidating at least $584 million worth of FTT "due to recent revelations that have come to light".

Bankman-Fried apparently fires back at Zhao: "A competitor is trying to go after us with false rumors.

FTX is fine, assets are fine," he writes in a now-deleted tweet. FTX sees massive withdrawals.

FTT fell by more than 30% to a level not seen since last February. FTX stops processing customer requests for withdrawals.

To protect users, we have signed a non-binding LOI with the intent to fully acquire FTX.com and help address the liquidity crunch.

In a span of five days, the loss of FTT ballooned to 85% of its value. BitcoinBTC +1.7% hits two-year low, cryptocurrencies and linked stocks also sink.

Stablecoin Tether slipped below its $1 peg. SBF posts a Twitter thread, apologizing and promising to "take responsibility, and do what I can".

I'm skipping a lot here, but you get the gist. When SBF bailed out a string of struggling crypto firms earlier this year.

So many scratched their heads, but lauded the 30-year-old as the next coming JP Morgan, even calling him crypto's lender of last resort.

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