Home CryptoBinance FTX Meltdown Latest News

FTX needs to raise about $9.4 billion from investors and rivals, as the exchange seeks to save itself after customer withdrawals, as CEO Bankman-Fried is under investigation by the U.S. Securities and Exchange Commission for potential securities law violation.

Genesis Trading derivatives business had approximately $175 million in locked funds on FTX.

Sequoia Capital wrote down a $150 million exposure to FTX to zero.

The Ontario Teachers Pension Plan (OTPP) said on Thursday it had invested a total of $95 million in FTX.

 FTX transferred at least $4 billion to Alameda, to support the crypto trading firm after a series of losses.

Justin Sun, the founder of the crypto token Tron, said he was prepared to offer billions of dollars to FTX provided the due diligence checks out, but the speed at which Binance walked away, the news of SEC involvement and disclosed operations of Alameda it is unlikely anyone will step in to save the day.

Temasek Holdings said in emailed comments to Reuters: “We are aware of the developments between FTX and Binance, and are engaging FTX in our capacity as shareholder.”

Sam Bankman-Fried’s trading firm Alameda Research reportedly owes his crypto exchange FTX $10 billion after taking loans funded by deposits from FTX customers. Both Alameda and FTX are controlled by Sam Bankman-Fried, who issued a public apology this morning.

Bankman-Fried also promised that FTX.us users are fine (the domestic exchange operates as a separate entity) and that everything going on relates to the FTX.com exchange available internationally.

FTX’s troubles began when Alameda’s balance sheet was questioned and the public knowledge that much of it was made up of FTT, the FTX token. Binance founder Changpeng Zhao decided to take advantage of the situation and announced plans to sell the billions of FTT it held, the move, as CZ planned, killed FTT and in turn Alameda and FTX.

The FTX meltdown will get worse before it gets better.

But it is not bad news for everyone

BNB the Binance coin has done well as the FTX ship sank despite a sizable loss on the FTX token, Binance stands to gain the majority of FTX users a fact that probably prompted CZ to take the knife to FTX in the first place.

Coinbase, the biggest crypto brokerage and exchange operator in the U.S. will gain most of the US users.

KXCO Trade Desk is the firm most likely to build on the ashes of Alameda, 3AC and Celsius. KXCO has real traders monitoring markets 24/7 not algorithms. The traders have a firm understanding of all financial markets, understand the crypto market behavior are most similar to penny stocks which we have a long history in, starting back in 1982.

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