SBF-CZ Everything You Need To Know About FTX/Alameda Research Collapse In 14Points

CZ AND SBF
  • Most people hate SBF in the crypto space. Sam Bankman Fried’s story is that of a billionaire turned villain, dining with politicians and throwing money at congress to strengthen FTX’s hold on the US crypto market share, Ultimately committing the greatest sin in the book of satoshi, “Friends of the Government are not our friend”.
  • CZ and SBF hate each other, it is believed SBF orchestrated binance.com ousting from the US by US regulations, no tangible information on that . But SBF has been quoted in a tweet saying “Uh he is allowed to goto DC right?” Suggesting He does know a thing or two about Binance Regulations trouble in the US. Based on recent happenings it is clear CZ is not happy with SBF.
  • On November 2, reporter Ian Allison published findings that roughly $5.8 billion out of $14.6 billion of assets on the balance sheet at Alameda Research, based on then-current valuations, was linked to FTX’s exchange token, FTT and not available for use in liquid cash.They were a part of most notably in FTT token, Solana and other projects that they were behind and they couldn’t sell The tokens anytime they wanted.Here is an updated spreadsheet of all Alameda research portfolio https://docs.google.com/spreadsheets/d/1QFm5uBmTVRRz2QVLsbj2rFdsJegxjF6-xW3HpoQA3TY/edit?usp=sharing
  • On November 6, CZ announced they will be dumping their FTT bag in the open market as an “Honest reaction to the leaked FTX financial books”. In an email sent to Binance employees CZ denies knowledge of these bad financial books but I have reasons to believe CZ knew about the bad financial books of FTX and waited patiently for FTX to self implode before reacting.
  • The first public sign that SBF was in trouble was when two Executives from both Alameda Research & FTX resigned back in August and September. I think this was the perfect time for someone like CZ with over $1billion invested in FTT, FTX’s exchange token, to be “knowledgeable” about the books at FTX .
  • Alameda Research’s current CEO offered to purchase Binance’s FTT holdings over the counter to avoid the FTT crash in the open market.
  • I am not sure this deal went through,because immediately after CZ’s tweet FTT saw a crash that has now taken it down from $24 per token as at the time of CZ’s FUD tweet to $3.24 per token as at the time of this post. A 152% decline.
  • Leaked report from coindesk ( the one that exposed the bad book) suggests FTX is Insolvent, aka will not be able to meet user withdrawal requests. This is already evident as FTX has failed to process withdrawals on its platform for the past 2days.
  • Well it begs to ask if FTX can not meet user withdrawal requests, where then did the funds go?. My Strong bet is the Alameda Research trading desk. Users’ funds must have been used for trading as a hedge fund at Alameda Research.
  • Moving forward, SBF as claimed by CZ did call CZ to find a way to rescue FTX by way of acquisition. For some minutes it seemed this plan was going through until it was not .
  • All crypto exchange should have a reserve fund suggests CZ
  • Another point I wish to make in this situation is if we were 10 points ahead in the crypto space, this current situation has set us back 5 points until true regulations come into crypto retail liquidity will continue to be the playground for unscrupulous billionaire elements.
  • As a victim of this crash, I sympathize with everyone who has lost in this crash.
  • My advice to you is to buy some cheap coins and wait for the next bullrun, ultimately we shall recover .

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Jade Of Wallstreet

Blockchain writer(legal,technical & creative) | Blockchain Advocate For young people in Africa 🌍 | Experienced Defi Farmer, Research/Insight Analyst.