‘I’m sorry, I f—ed up’: Inside the FTX collapse
Sam Bankman-Fried, owner of cryptocurrency exchange FTX, caught his employees off-guard with a sombre message.The reason for the mea culpa: his announcement half an hour earlier that FTX’s arch-rival, Binance, planned to mount a shock takeover of its main trading platform to save it from a “liquidity crunch”. Binance founder Changpeng “CZ” Zhao, whom the billionaire had accused of sabotage, would now be his White Knight.
Binance earlier said it decided to pull out of the deal as a result of its due diligence on FTX and news reports about US investigations into the company. Financial regulators around the world have issued warnings about Binance for operating without a licence or violating money laundering laws. The US justice department is investigating Binance for possible money laundering and criminal sanctions violations. Reuters reported last month that Binance had helped Iranian firms trade $8-billion since 2018 despite US sanctions, part of a series of articles this year by the news agency on the exchange’s financial crime compliance.
Between May and July, FTX lawyers and advisors wrote to Binance at least 20 times for details on Zhao’s sources of wealth, banking relationships and ownership of Binance, the messages show. Seeking to prop up Alameda, which held almost $15-billion in assets, Bankman-Fried transferred at least $4-billion in FTX funds, secured by assets including FTT and shares in trading platform Robinhood Markets, the people said. Alameda had disclosed a 7.6% share in Robinhood that May.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Binance to buy FTX after 48-hour crypto whale gameA 48-hour crypto drama ended in shock Tuesday as Binance agreed to acquire its closest rival, FTX, after helping whip up an investor exodus.
Read more »
Binance backs out of FTX deal — Bitcoin tumbles below R300,000Changpeng “CZ” Zhao walked away from his bailout for Sam Bankman-Fried’s FTX.com almost as quickly as he offered a rescue. Bankman-Fried has warned that FTX needs an $8 billion rescue, or face bankruptcy.
Read more »
Binance bails out crypto rival FTXCrypto giant Binance has helped cover a 'liquidity crunch' at rival FTX in a surprise move that lifted cryptocurrencies on Tuesday.
Read more »
Bitcoin tanks on Binance-FTX deal doubtsBitcoin, the largest token by market value, fell as much as 5.4% on Wednesday after a near-10% decline a day earlier and was trading at about $17,700 as of 12:00 in South Africa.
Read more »
Business Maverick: Cryptocurrencies plunge as doubts about FTX-Binance deal growCryptocurrencies tumbled anew as news around Binance’s potential takeover of rival exchange FTX started to sink in and renewed trader concerns that there is trouble brewing within the industry and among some of its top players.
Read more »
Boost Wireless Revenues and Close the Connectivity Gap—How Wireless Networks Can Deliver Immediate ROI - IT News Africa - Up to date technology news, IT news, Digital news, Telecom news, Mobile news, Gadgets news, Analysis and ReportsMarket studies report that more than 450 million people are connected to the internet across Africa. However, despite this progress more than 60 percent of Africa’s population remain offline, demonstrating a significant connectivity gap preventing much of the African population from realizing the full benefit of the internet. The answer to addressing this connectivity gap […]
Read more »