FTX Megathread

Updates from 9th Nov 2022:

FTX: Cryptocurrency market rocked by near-collapse of exchange: https://www.bbc.com/news/business-63564364

These Four Key Charts Shed Light on the FTX Exchange's Spectacular Collapse: https://www.coindesk.com/markets/2022/11/09/these-four-key-charts-shed-light-on-the-ftx-exchanges-spectacular-collapse/

Relevant twitter threads:

Here's everything you need to know about Alameda Research and the collapse of FTX

Brian Armstrong on FTX

Jeremy Allaire from CIrcle on FTX

Lucas Nuzzi take on FTX

On Alameda's DeFi debt obligations

FTX liquidity crunch in 10 charts

Kraken CEO Jesse Powell on FTX situation


Latest update:

This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire http://FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days.


This megathread will be used to discuss all news and events around ongoing FTX story.

Currently the latest news articles on the topic are:

Cryptocurrencies slide as concerns over FTX exchange rattle markets: https://www.reuters.com/markets/currencies/cryptocurrencies-slide-concerns-over-ftx-exchange-rattle-markets-2022-11-08/

FTX Token Plummets as Market Fears Possible Alameda Contagion: https://www.coindesk.com/markets/2022/11/08/ftt-plummets-as-market-fears-possible-alameda-contagion/

Bitcoin slumps ahead of midterms, and FTX addresses slow withdrawals: CNBC Crypto World: https://www.cnbc.com/video/2022/11/07/bitcoin-slumps-midterms-ftx-slow-withdrawals-cnbc-crypto-world.html

As per comments in daily thread, some users are reporting delayS in withdrawals.

As per FTX latest tweet,

queue is decreasing and getting back to more reasonable levels; nodes and banks catching up

Please use this thread to discuss all events around this ongoing story. Please do not create new threads on this , they will be removed.

FTX Megathread

49 thoughts on “FTX Megathread”

  1. some old tweets from sam about tether

    https://twitter.com/sbf_ftx/status/1364195276664172552

    https://twitter.com/SBF_FTX/status/1146238039162679296

    No wonder why he’s defending tether as FTT and USDT serves the same purpose.

  2. CZ fucked SBF and SBF fucked retail traders and investors like all of us.

    CZ is no saint.

  3. just a reminder for everyone to use DEX instead of CEX. thats why i use rubic exchange, you can literally buy any coin their without KYC, registration or dealing with a CEX…

    DeFi really is the next big thing coming for crypto after all this recent manipulation of greedy billionaires

  4. If you haven’t learnt how to navigate defi yet, this’d be a good time to start. fuck cex’s

  5. I just had money in EUR laying there cause I wanted to take a safe time out of crypto. Do you think I can get some of my money back?

  6. This is not going to end well. It never does. Binance isn’t going to save FTX. All these centralized trading “platforms” need to go.

    These jive turkeys are burning money and they broke. Sam said he was saving the industry by doing this that. Now he can’t save himself. Red flags.

    Btc to under 10k because of this.

  7. The main thing that matters is the size of hole in FTX books. How much % of reserves they have vs liabilities owed to clients

    If its too big (It could be), I suspect CZ would just refuse to do this.

    Then its bankruptcy proceedings for FTX users, similar to Celsius but perhaps in a Bahamas court?

    There is also a legal precedent for clubbing FTX US with FTX dot com and treating all of that as one common enterprise, so even those with funds in FTX US could get clubbed together in the bankruptcy estate

  8. Could someone explain to me why the deal might not go through? Wouldn’t CZ need all the information from FTX and Alameda before agreeing to acquire FTX? So he knows what he signs up for right?

  9. PSA: FTX dot com deposits are still open

    please dont deposit anything into FTX

    They are so dysfunctional rn they havent even warned users about not depositing

  10. I think this is going to be a pivotal moment for the crypto community. I feel like over the past year or two, members of the community have grown fond of these big exchanges and idolized them far too much.

    SBF with his thoughts on legislation recently had shown his true colors. Personally 6-9 months ago, I really believed he was a proponent of what cryptocurrency and decentralized finance can do for the world. It quickly became clear that instead of being an advocate for crypto, he wanted to milk every penny he could in the name of “effective altruism”.

    As I’ve heard some other say, I think we need to be very skeptical of centralized exchanges in the future & placing any amount of faith in them. I wouldn’t be surprised if we see the community move in almost a regressive way using these bigger centralized exchanges less and less. I’m not sure what voids might open up needing to be filled, but I imagine the sphere will look very different in a years time.

  11. What does CZ gain by buying FTX out when he can let them wither away on their own and scooping up their customers? Why even get involved in the mess by affiliating Binance with FTX.

  12. Hey Just so people are aware FTX US is separate from FTX (international). They are completely different companies and FTX US is apparently ok.

    FTX does not own or have any legal relationship to FTX US and it isn’t impacted by any of this.

    https://help.ftx.com/hc/en-us/articles/360056976411-Jurisdiction-regulations-licensing-and-practices

  13. Did anyone have a successful withdrawal in the last hours from FTX? Are they processing withdrawals slowly or have they stopped?

  14. Gentle reminder that even though Bitboy is trying to present himself as one of the key people that ‘took down’ Sam, Bitboy SHILLED FTT and praised FTX in the bear market.

    “”We could see FTT absolutely rip” “”Everything Sam touches turns to gold”

    Obligatory fuck Bitboy.

  15. SBF is deleting tweets where he claimed his exchange was solvent, they had funds to back deposits

    https://twitter.com/augginator/status/1590117110818443265

  16. I should give a thanks to this subreddit for showing so many threads on Monday about removing coins from FTX. I could have left it too late if it wasn’t for that, still have a few FTT on there but could have been a lot worse.

  17. Hello guys, what can happen with FTX Token after help from Binance?
    What are possibilities of FFT token owners now?

  18. Anybody successfully transferred their alts out of FTX.Com? I’m stuck on ‘Requested’ for nearly 16 hours to transfer my BTC and ETH out. The next plan is to cancel the transfer, change it to another coin, and transfer it to another CEX.

    Is this the best viable move?

    ​

    gif

  19. Can someone explain to me why every coin is effected by FTX? And how long will this dip probably last? (wallet is down with 25% lmao)

  20. Never trust anyone who sounds like they have a voice anonymiser on their normal speaking voice. SBF will probably shave his head now and revert back to his naturally deep baritone voice.

  21. I’m experiencing delay with BTC withdrawals on BSC network.
    Initiated yesterday still not processed

  22. Why is everything on fire….FIRE SALE IS WHAT I MEAN :’( (pls help this is a cry)

  23. that has to be the biggest sign that keeping your crypto on centralized exchanges holds a considerable risk. FTX was seen as pretty safe a few weeks ago. Tbh, i wouldnt trust binance with my crypto either.

  24. I’m not in it for the tech anymore, I’m in it for real time crypto drama via tweets. I’m invested emotionally and financially.

  25. If we learned anything from the Celsius/CEL collapse it’s this ain’t over until some desperate idiots start rambling about short squeezing FTT 🤦

  26. It’s a difficult time for many, and other are trying to speculate by inducing more panic in an already stressed situation.

    I still believe that FTX is solvent, that the DD process will go well and the announced deal will be finalized. In a matter of days or perhaps hours we should get more clarity. But even in the worst case scenario, I want to point out that this case is very different from the like of Celsius and Voyager. Because in those cases customers transferred ownership of their funds to the platform and become unsecured creditors. This is not what happens when you deposit with FTX.

    Celsius TOS: https://i.imgur.com/IzkgrvX.jpg
    FTX TOS: https://i.imgur.com/jeVLcBS.jpg

  27. This wouldn’t of been possible if FTX didn’t place themselves in such a vulnerable position to begin with. I’m so sick of these exchanges investing in illiquid and risky assets out of greed when it should be a priority to be able to facilitate any requests for withdrawals.

    They are exchanges, not hedge funds.

  28. We really need some clarity today! Will Binance follow through with the deal or not? That’s the question.

  29. I know FTX put themselves in a poor position, but Binances tactics were predatory and should not be celebrated either way.

  30. OKX, Phemex, and Binance will post proof of reserves soon. At least something positive to come out of this.

    This should be the standard. Knowing that companies have ample reserves will also help prevent a ‘crypto bankrun’.

  31. This is the exact reason why people will continue to be hesitant on crypto investing..

    Shitty companies doing shitty things with your money.

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