(Bloomberg) — Crypto markets have been roiled by the saga involving FTX.com, which until just a few days ago was seen as one of the top crypto exchanges, while its charismatic founder Sam Bankman-Fried was considered crypto’s version of John Pierpont Morgan.
(Bloomberg) — Crypto markets have been roiled by the saga involving FTX.com, which until just a few days ago was seen as one of the top crypto exchanges, while its charismatic founder Sam Bankman-Fried was considered crypto’s version of John Pierpont Morgan.
The exchange was catapulted into a crisis after Changpeng “CZ” Zhao, founder of rival Binance Holdings Ltd., announced plans to sell some $530 million worth of FTX’s utility token FTT, citing “recent revelations.” Binance had received the tokens when it sold a stake in FTX last year.
FTT plunged soon after.
FTX suffered about $5 billion of withdrawals on Sunday, according to Bankman-Fried. It was then forced into a hastily-arranged rescue by rival Binance, which backed out of the deal on Wednesday.
US authorities are now investigating FTX’s dealings, Bloomberg News has reported.
On Thursday, Bankman-Fried said he’s closing down Alameda Research, the trading house at the center of speculation about whether FTX mishandled customer funds.
Bloomberg News will capture the news flow here.
Key stories and developments:
- Crypto Markets Stabilize on Hopes for Muted Impact From FTX Rout
- FTX Hurtles Toward Bankruptcy With $8 Billion Hole, US Probe
- Sequoia Capital Writes Down Entire Value of Its FTX Stake
For crypto market prices: CRYP; for top crypto news: TOP CRYPTO
(All times are US Eastern Standard)
FTX US Says Trading May Be Halted in A Few Days (1:31 p.m.)
FTX US, the American entity of Bankman-Fried’s crypto exchange, said trading may be halted on it in a few days.
FTX.com and FTX US are separate entities with separate management personnel, tech infrastructure, and licensing, but have similar owners and investors, representatives for the firms have said in the past.
FTX Reaches Pact With Tron to Let Users Withdraw Some Tokens (1:10 p.m.)
FTX said it reached an agreement with Justin Sun’s Tron that will allow users to withdraw some tokens from the troubled exchange.
Japan Cracks Down on Local FTX Unit; Freezes Exchange Activity (12:52 p.m.)
Japan’s government has ordered FTX.com’s local subsidiary to suspend some of its operations, saying it has no structure in place to properly offer cryptocurrency exchange services to users.
Crypto Entrepreneur Sun’s Token Jumps After Offer of Help to FTX (12:37 p.m.)
Tron founder Justin Sun said on Twitter early Thursday that his firm is working with FTX at address its liquidity crunch, without providing specific details.
The price of the native token used on the Tron blockchain surged on the embattled platform.
FTX Resumes Withdrawals After Two-Day Pause (12:28 p.m.)
FTX.com has resumed withdrawals on the platform, according to blockchain data, after halting such activities on Tuesday.
Nansen and Kaiko, another blockchain data firm, both confirmed the resumed activities. FTX processed $8 million worth of withdrawals in an hour on Thursday, Nansen said.
Bankman-Fried Shuts Down Trading Firm (11:40 a.m.)
Bankman-Fried is shutting down Alameda Research, the trading house at the heart of his digital-asset empire, as he seeks last-ditch financing to save his troubled crypto exchange FTX.
More stories like this are available on bloomberg.com
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