{"id":23986,"date":"2022-11-09T13:11:51","date_gmt":"2022-11-09T18:11:51","guid":{"rendered":"http:\/\/worldjusticenews.com\/news\/?p=23986"},"modified":"2022-11-09T13:11:51","modified_gmt":"2022-11-09T18:11:51","slug":"ftx-cryptocurrency-market-rocked-by-near-collapse-of-exchange","status":"publish","type":"post","link":"https:\/\/worldjusticenews.com\/news\/2022\/11\/09\/ftx-cryptocurrency-market-rocked-by-near-collapse-of-exchange\/","title":{"rendered":"FTX: Cryptocurrency market rocked by near-collapse of exchange"},"content":{"rendered":"<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\"><b class=\"ssrcss-hmf8ql-BoldText e5tfeyi3\">The digital assets market has been rocked by the near-collapse of one of the world&#8217;s biggest cryptocurrency exchanges, FTX.<\/b><\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">On Tuesday, FTX struck a bailout deal with larger rival Binance after a surge in withdrawals caused a &#8220;significant liquidity crunch&#8221;.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">Concerns about FTX&#8217;s financial health reportedly triggered $6bn (\u00a35.2bn) of withdrawals in just three days.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">Binance says it agreed to buy FTX&#8217;s non-US unit, pending due diligence.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">FTX&#8217;s founder Sam Bankman-Fried and Binance&#8217;s chief executive Changpeng &#8220;CZ&#8221; Zhao are two of the most powerful people in the cryptocurrency market and high-profile rivals.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"unordered-list-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<div class=\"ssrcss-1o5f7ft-BulletListContainer e5tfeyi0\">\n<ul role=\"list\">\n<li><a class=\"ssrcss-k17ofw-InlineLink e1no5rhv0\" href=\"https:\/\/www.bbc.co.uk\/news\/business-60339561\" target=\"_blank\" rel=\"noopener\">Crypto firm Binance to take $200m stake in Forbes<\/a><\/li>\n<li><a class=\"ssrcss-k17ofw-InlineLink e1no5rhv0\" href=\"https:\/\/www.bbc.co.uk\/news\/business-59496509\" target=\"_blank\" rel=\"noopener\">US lawmakers to question crypto executives<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">The pressure on FTX came in part from Mr Zhao, who tweeted on Sunday that Binance would sell its holdings of FTX&#8217;s digital token, known as FTT.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">&#8220;Due to recent revelations that have come to light, we have decided to liquidate any remaining FTT on our books,&#8221; he said. FTT has lost almost 80% of its value this week.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">On Tuesday Mr Zhao tweeted, &#8220;This afternoon, FTX asked for our help. There is a significant liquidity crunch.&#8221;<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">Binance said it had signed a letter of intent to buy the firm but had &#8220;the discretion to pull out from the deal at any time&#8221;.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">Also on Twitter Mr Bankman-Fried said: &#8220;Our teams are working on clearing out the withdraw backlog as is. This will clear out liquidity; all assets will be covered 1:1.&#8221;<\/p>\n<figure id=\"attachment_23987\" aria-describedby=\"caption-attachment-23987\" style=\"width: 640px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/worldjusticenews.com\/news\/wp-content\/uploads\/2022\/11\/Sam-Bankman-Fried.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-23987\" src=\"http:\/\/worldjusticenews.com\/news\/wp-content\/uploads\/2022\/11\/Sam-Bankman-Fried.jpg\" alt=\"Sam Bankman-Fried\" width=\"640\" height=\"360\" srcset=\"https:\/\/worldjusticenews.com\/news\/wp-content\/uploads\/2022\/11\/Sam-Bankman-Fried.jpg 640w, https:\/\/worldjusticenews.com\/news\/wp-content\/uploads\/2022\/11\/Sam-Bankman-Fried-300x169.jpg 300w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a><figcaption id=\"caption-attachment-23987\" class=\"wp-caption-text\">FTX founder Sam Bankman-Fried (Image: Tom Williams)<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">&#8220;The important thing is that customers are protected&#8230; We are in the best of hands,&#8221; he added.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">Mr Bankman-Fried also noted that FTX&#8217;s US business was a separate company and &#8220;not currently impacted by this&#8221;.<\/p>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">&#8220;This is a black swan event that adds more fears in the crypto space. This cold winter for crypto now takes on more fear,&#8221; Dan Ives, senior equity analyst at Wedbush Securities told the BBC.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">The news sent shockwaves through the digital assets market, with cryptocurrencies falling sharply.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">Bitcoin fell by more than 10% to hit the lowest level since November 2020.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">Meanwhile, online trading platform Robinhood lost more than 19% of its stock market value, while cryptocurrency exchange Coinbase fell by 10%.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ssrcss-18mjolk-ComponentWrapper ep2nwvo1\" data-component=\"image-block\">\n<figure class=\"ssrcss-wpgbih-StyledFigure e34k3c23\">\n<div class=\"ssrcss-ab5fd8-StyledFigureContainer e34k3c21\"><span class=\"ssrcss-1exovz1-Placeholder e16icw910\"><picture><source srcset=\"https:\/\/ichef.bbci.co.uk\/news\/240\/cpsprodpb\/1226D\/production\/_105894347_grey_line-nc.png.webp 240w, https:\/\/ichef.bbci.co.uk\/news\/320\/cpsprodpb\/1226D\/production\/_105894347_grey_line-nc.png.webp 320w, https:\/\/ichef.bbci.co.uk\/news\/480\/cpsprodpb\/1226D\/production\/_105894347_grey_line-nc.png.webp 480w, https:\/\/ichef.bbci.co.uk\/news\/624\/cpsprodpb\/1226D\/production\/_105894347_grey_line-nc.png.webp 624w, https:\/\/ichef.bbci.co.uk\/news\/800\/cpsprodpb\/1226D\/production\/_105894347_grey_line-nc.png.webp 800w, https:\/\/ichef.bbci.co.uk\/news\/976\/cpsprodpb\/1226D\/production\/_105894347_grey_line-nc.png.webp 976w\" type=\"image\/webp\" \/><\/picture><\/span><\/div>\n<\/figure>\n<\/div>\n<div class=\"ssrcss-18mjolk-ComponentWrapper ep2nwvo1\" data-component=\"image-block\">\n<figure class=\"ssrcss-wpgbih-StyledFigure e34k3c23\">\n<div class=\"ssrcss-ab5fd8-StyledFigureContainer e34k3c21\"><span class=\"ssrcss-13t93ir-Placeholder e16icw910\"><picture><source srcset=\"https:\/\/ichef.bbci.co.uk\/news\/240\/cpsprodpb\/C10D\/production\/_114812494_analysis-joe-tidy-nc.png.webp 240w, https:\/\/ichef.bbci.co.uk\/news\/320\/cpsprodpb\/C10D\/production\/_114812494_analysis-joe-tidy-nc.png.webp 320w, https:\/\/ichef.bbci.co.uk\/news\/480\/cpsprodpb\/C10D\/production\/_114812494_analysis-joe-tidy-nc.png.webp 480w, https:\/\/ichef.bbci.co.uk\/news\/624\/cpsprodpb\/C10D\/production\/_114812494_analysis-joe-tidy-nc.png.webp 624w, https:\/\/ichef.bbci.co.uk\/news\/800\/cpsprodpb\/C10D\/production\/_114812494_analysis-joe-tidy-nc.png.webp 800w, https:\/\/ichef.bbci.co.uk\/news\/976\/cpsprodpb\/C10D\/production\/_114812494_analysis-joe-tidy-nc.png.webp 976w\" type=\"image\/webp\" \/><img decoding=\"async\" class=\"ssrcss-evoj7m-Image ee0ct7c0\" src=\"https:\/\/ichef.bbci.co.uk\/news\/1536\/cpsprodpb\/C10D\/production\/_114812494_analysis-joe-tidy-nc.png\" srcset=\"https:\/\/ichef.bbci.co.uk\/news\/240\/cpsprodpb\/C10D\/production\/_114812494_analysis-joe-tidy-nc.png 240w, https:\/\/ichef.bbci.co.uk\/news\/320\/cpsprodpb\/C10D\/production\/_114812494_analysis-joe-tidy-nc.png 320w, https:\/\/ichef.bbci.co.uk\/news\/480\/cpsprodpb\/C10D\/production\/_114812494_analysis-joe-tidy-nc.png 480w, https:\/\/ichef.bbci.co.uk\/news\/624\/cpsprodpb\/C10D\/production\/_114812494_analysis-joe-tidy-nc.png 624w, https:\/\/ichef.bbci.co.uk\/news\/800\/cpsprodpb\/C10D\/production\/_114812494_analysis-joe-tidy-nc.png 800w, https:\/\/ichef.bbci.co.uk\/news\/976\/cpsprodpb\/C10D\/production\/_114812494_analysis-joe-tidy-nc.png 976w\" alt=\"Analysis box by Joe Tidy, Cyber reporter\" width=\"1536\" height=\"306.11957796014065\" \/><\/picture><\/span><\/div>\n<\/figure>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">The cryptocurrency world is full of big personalities and Sam Bankman-Fried is one of the biggest.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">Since the &#8220;cryptocrash&#8221; in the spring, the young, outspoken, owner of FTX has been a beacon of hope to investors large and small.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">While other companies have faltered, Bankman-Fried seemed to be thriving.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">In the last six months, the 30-year-old had given out generous rescue packages for struggling firms, secured lucrative acquisitions and taken part in high-profile media interviews.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">As revelations about his company&#8217;s fragile finances came to light in\u00a0<a class=\"ssrcss-k17ofw-InlineLink e1no5rhv0\" href=\"https:\/\/www.coindesk.com\/business\/2022\/11\/02\/divisions-in-sam-bankman-frieds-crypto-empire-blur-on-his-trading-titan-alamedas-balance-sheet\/\" target=\"_blank\" rel=\"noopener\">reporting by CoinDesk<\/a>, those outspoken interviews are now coming back to bite him.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">&#8220;More crypto exchanges will fail,&#8221; he said in one interview adding that some firms are &#8220;secretly insolvent&#8221;.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">Now it seems his company joins the growing list of cryptocurrency businesses that have failed thanks to a recurring problem &#8211; a lack of cash reserves.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">FTX is not the first firm to succumb to the so-called &#8220;crypto winter&#8221; we are in but it is by far the largest.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-18mjolk-ComponentWrapper ep2nwvo1\" data-component=\"image-block\">\n<figure class=\"ssrcss-wpgbih-StyledFigure e34k3c23\">\n<div class=\"ssrcss-ab5fd8-StyledFigureContainer e34k3c21\"><span class=\"ssrcss-1exovz1-Placeholder e16icw910\"><picture><source srcset=\"https:\/\/ichef.bbci.co.uk\/news\/240\/cpsprodpb\/1226D\/production\/_105894347_grey_line-nc.png.webp 240w, https:\/\/ichef.bbci.co.uk\/news\/320\/cpsprodpb\/1226D\/production\/_105894347_grey_line-nc.png.webp 320w, https:\/\/ichef.bbci.co.uk\/news\/480\/cpsprodpb\/1226D\/production\/_105894347_grey_line-nc.png.webp 480w, https:\/\/ichef.bbci.co.uk\/news\/624\/cpsprodpb\/1226D\/production\/_105894347_grey_line-nc.png.webp 624w, https:\/\/ichef.bbci.co.uk\/news\/800\/cpsprodpb\/1226D\/production\/_105894347_grey_line-nc.png.webp 800w, https:\/\/ichef.bbci.co.uk\/news\/976\/cpsprodpb\/1226D\/production\/_105894347_grey_line-nc.png.webp 976w\" type=\"image\/webp\" \/><\/picture><\/span><\/div>\n<\/figure>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\"><\/div>\n<\/div>\n<div class=\"ssrcss-11r1m41-RichTextComponentWrapper ep2nwvo0\" data-component=\"text-block\">\n<div class=\"ssrcss-7uxr49-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">Source: <a href=\"https:\/\/www.bbc.co.uk\/news\/business-63564364\" target=\"_blank\" rel=\"noopener\">bbc.co.uk<\/a><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\">The digital assets market has been rocked by the near-collapse of one of the world&#8217;s biggest cryptocurrency exchanges, FTX. On Tuesday, FTX struck a bailout deal with larger rival Binance after a surge in withdrawals <a class=\"mh-excerpt-more\" href=\"https:\/\/worldjusticenews.com\/news\/2022\/11\/09\/ftx-cryptocurrency-market-rocked-by-near-collapse-of-exchange\/\" title=\"FTX: Cryptocurrency market rocked by near-collapse of exchange\">[&#8230;]<\/a><\/div>\n","protected":false},"author":1,"featured_media":23988,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"pmpro_default_level":"","footnotes":""},"categories":[109,2,6],"tags":[6221,5016,8929,8928],"class_list":{"0":"post-23986","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-headline","8":"category-news","9":"category-world","10":"tag-binance","11":"tag-crypto-currencies","12":"tag-ftt","13":"tag-ftx","14":"pmpro-has-access"},"_links":{"self":[{"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/posts\/23986","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/comments?post=23986"}],"version-history":[{"count":2,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/posts\/23986\/revisions"}],"predecessor-version":[{"id":23990,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/posts\/23986\/revisions\/23990"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/media\/23988"}],"wp:attachment":[{"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/media?parent=23986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/categories?post=23986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/tags?post=23986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}