New report shows FTX used customer’s crypto funds to support Almeda Research
As the flames of FTX crash burn the crypto market, people come up with different claims explaining why the crypto exchange fell. In a market driven by claims, rumors and speculation, such reports could create a further crash. But on the other hand, it can also shed light on the ongoing investigation.
The latest allegation by Reuters claimed that FTX used clients’ funds to pull Alameda Research out of insolvency. The report also addressed Binance’s withdrawal from the FTX acquisition as a failed attempt to save crypto.
Furthermore, a message from Bankman-Fried, FTX CEO, to podcast Cobie was leaked on Twitter. The statement revealed that Bankman-Fried is confused about how to resolve the FTX issue. However, the message also showed that the CEO is seeking to give a thorough explanation to society.
FTX may be heading towards bankruptcy
Another Twitter posts from an account addressed as Austin Capital shared several rumors. The post claimed that FTX employees turned a blind eye even though they were aware of the company’s law-breaking practices.
The tweet further claimed that the employees are now taking the fall for FTX. To this claim, members of the crypto community retweeted saying that the employees deserve to go to jail if they knew about the crimes.
Meanwhile, a document was leaked indicating that FTX has up to $1.3 billion in assets. A Trustnodes report stated that the spreadsheet document appears to be from a blockchain DApp called Zaper.
There are more and more reports about the status quo of the crypto exchange collapse. Some anonymous people told Reuters that FTX recorded $6 billion in withdrawals. Bloomberg also reported information from unnamed sources, saying the crypto exchange may file for bankruptcy.
The Wall Street Journal also reported that a person familiar with the FTX case claimed that the government is investigating the crypto exchange.
How is the crypto market doing?
The FTX liquidity crisis has left a cascading effect on the crypto market. The market is currently in shambles with massive losses everywhere. Most cryptocurrency prices, including Bitcoin, are at all-time lows as investors worry about the fate of the industry.
Reports claim the problem started when Alameda’s leaked balance sheet revealed its overexposure to FTT. This led to investors starting to withdraw their holdings from the digital asset exchange.
Although the reports are negative for digital assets, some community members are positive about the future of Bitcoin. According to cryptoanalyst Michael van de Poppe, things will take a positive turn later.
While citing Terra, FTX and Mt. Gox, the cryptanalyst said bugs must be fixed to improve the system. However, he ended his statement by saying, “Bitcoin and other digital assets are here to stay.”
Featured image from Pixabay, chart from TradingView.com
