All dates are Coordinated Common Time (UTC).
Nov. 2 — Studies SBF-founded firm held vital quantities of FTT
The saga kicked off on Nov. 2 after reviews {that a} leaked steadiness sheet from the Sam Bankman-Fried-founded buying and selling agency Alameda Analysis prompt the corporate held a big quantity of FTX Token (FTT), the native token of the FTX cryptocurrency trade.
A big buying and selling agency holding a lot of 1 asset involved the crypto group and introduced questions relating to the connection between Alameda and FTX.
Nov. 5 — Trackers choose up vital FTT motion to Binance
On Nov. 5 the Twitter account Whale Alert, which tracks vital on-chain crypto actions, notified its customers that just about 23 million FTT price over $584.5 million moved onto Binance.
22,999,999 #FTT (584,818,174 USD) transferred from unknown pockets to #Binancehttps://t.co/Nm2jz9MKW0
— Whale Alert (@whale_alert) November 5, 2022
On the time, the quantity was price round 17% of the FTT circulating provide.
Nov. 6 — Alameda CEO explains the steadiness sheet
Alameda CEO Caroline Ellison tried to quell any panic in a Nov. 6 tweet saying the leaked steadiness sheet wasn’t reflective of the entire story and famous that sheet, particularly, was just for “a subset of our company entities” and different belongings price over $10 billion “aren’t mirrored there.”
– the steadiness sheet breaks out a couple of of our largest lengthy positions; we clearly have hedges that aren’t listed
– given the tightening within the crypto credit score area this 12 months we’ve returned most of our loans by now— Caroline (@carolinecapital) November 6, 2022
Nov. 6 — Binance strikes to liquidate FTT holdings as a result of ‘current revelations’
Afterward Nov. 6, Binance CEO Changpeng “CZ” Zhao mentioned his trade would liquidate its complete FTT holdings citing “current revelations which have come to mild” believed to be in reference to the Alameda steadiness sheet.
Zhao mentioned Binance held round $2.1 billion equal in Binance USD (BUSD) and FTT as a result of its FTX divestment final 12 months however didn’t make clear Binance’s present FTT holdings.
He added it might promote the tokens in a means that “minimizes market affect”, anticipating the token gross sales to take “a couple of months to finish.”
As a part of Binance’s exit from FTX fairness final 12 months, Binance acquired roughly $2.1 billion USD equal in money (BUSD and FTT). As a consequence of current revelations which have got here to mild, now we have determined to liquidate any remaining FTT on our books. 1/4
— CZ Binance (@cz_binance) November 6, 2022
He additionally confirmed the Nov. 5 switch of practically 23 million FTT was a part of Binance’s liquidation transfer.
Zhao added later the transfer was “simply post-exit threat administration,” and referred to classes discovered from the collapse of Terra Luna Traditional (LUNC) and its market affect, versus being attributable to a scuffle on Twitter.
Nov. 6 — Alameda CEO presents to purchase Binance’s FTT holdings
Shortly after Zhao’s Nov. 6 announcement of Binance liquidating its FTT place, Ellison tweeted to Zhao saying Alameda would “fortunately purchase all of it” for $22 per share.
@cz_binance if you happen to’re trying to reduce the market affect in your FTT gross sales, Alameda will fortunately purchase all of it from you at the moment at $22!
— Caroline (@carolinecapital) November 6, 2022
Nov. 7 — FTX ‘bank-run’ begins, trade addresses sluggish withdrawals
With reviews and rumors swirling, FTX customers started to withdraw their funds from the trade for concern it might go bust, and commentators implored those that hadn’t already to get their crypto out of FTX.
Get your funds out of FTX. That is monetary recommendation.
— Ran Neuner (@cryptomanran) November 6, 2022
Reported information from Nansen on Nov. 7 confirmed stablecoin outflows on FTX reached $451 million over seven days, and customers started to report sluggish withdrawals on FTX with the trade addressing the withdrawal complaints assuring customers every part was working easily.
Nov. 7 — SBF says ‘belongings are nice’, implores CZ to return collectively
Shortly after the trade addressed person considerations, Bankman-Fried fired off a collection of tweets saying a competitor “is making an attempt to go after us with false rumors” and added that “FTX is ok. Belongings are nice.”
He claimed the trade has “sufficient to cowl all shopper holdings”, that it doesn’t “make investments shopper belongings” and has been “processing all withdrawals, and can proceed to be.”
He claimed FTX had $1 billion in extra money and referred to as on Zhao to “work collectively for the ecosystem.”
Nov. 7 — CZ refuses Alameda’s over-the-counter deal
Responding to a query on Twitter Zhao signaled his disinterest in taking over the deal earlier poised by Ellison to purchase Binance’s FTT holdings for $22 per token saying “I believe we are going to keep within the free market.”
I did not say that. It was a query, not a dedication. I believe we are going to keep within the free market.
We nonetheless maintain LUNA (now LUNC) at the moment.
— CZ Binance (@cz_binance) November 7, 2022
Nov. 8 — FTT value and crypto markets begin to waiver
Some analysts started to warn on Nov. 7 of a big value drawdown of FTT as a result of collection of bulletins and early on Nov. 8 the FTT value dove round 30% to round $15.40 from $22 in a matter of hours.
The worth of Bitcoin (BTC) additionally began to buckle with fears that FTX may quickly be going beneath.
Nov. 8 — FTX faces a ‘liquidity crunch’, strikes to promote trade to Binance
In a shock announcement, Bankman-Fried mentioned on Nov. 8 that FTX had “come to an settlement on a strategic transaction” with Binance for the trade to assist cowl what he referred to as a “liquidity crunch.”
He added “all belongings will likely be coated 1:1” and cited this as the primary motive FTX requested Binance to step in.
Zhao mentioned shortly after that Binance had signed a nonbinding letter of intent to accumulate the trade, however famous they reserved the correct to “pull out from the deal at any time.”
Nov. 8-9 — SBF removes ‘belongings are nice’ tweet, FTX web sites go darkish
Late on Nov. 8, a couple of hours after asserting the take care of Binance, Bankman-Fried deleted his accusatory tweet thread that additionally claimed FTX and its belongings have been “nice.”
On Nov. 9 the web sites for FTX’s enterprise capital arm FTX Ventures and Alameda have been taken offline while unconfirmed reviews flow into that FTX’s authorized and compliance employees give up on Nov. 8.
Associated: Galaxy Digital discloses $77M publicity to FTX, $48M possible locked in withdrawals
Studies on Nov. 9 started to floor that Binance is probably trying to again out of the settlement.
Nov. 9 — Binance formally backs out of the settlement
Lower than 48 hours after the preliminary announcement by Zhao that Binance may transfer to purchase FTX, Binance introduced on Nov. 9 that it’ll not be pursuing the acquisition of FTX.
Because of company due diligence, in addition to the most recent information reviews relating to mishandled buyer funds and alleged US company investigations, now we have determined that we are going to not pursue the potential acquisition of https://t.co/FQ3MIG381f.
— Binance (@binance) November 9, 2022
The trade cited the reported alleged “[mishandling] of buyer funds and alleged US company investigations” including “the problems are past our management or potential to assist.”
Nov. 9 — Crypto market in a sea of purple
The crypto market responded to the information with investor sentiment turning fearful with Bitcoin’s value hitting a multi-year low of $15,600, analysts anticipated additional draw back, suggesting Bitcoin may settle across the $12,000 mark.
Nov. 9 — SBF reportedly tells buyers he wants $8B in emergency funding
Studies emerged on Nov. 9 that Bankman-Fried requested buyers on a name for $8 billion in emergency funding to cowl the “liquidity crunch” attributable to person withdrawals over the previous few days.
Bankman-Fried reportedly was searching for to lift as much as $4 billion from buyers, and canopy the remaining sum with debt financing and even his personal private fortune to make clients complete.
Nov. 9 — FTX web site urges in opposition to depositing, unable to course of withdrawals
FTX’s web site skilled downtime on Nov. 9 for round two hours and when introduced again on-line, got here with a warning strongly advising in opposition to depositing and that the trade was unable to course of withdrawals.
The warning was additional confirmed in a pinned publish on FTX’s official Telegram channel with its administrator saying crypto and fiat withdrawals have been affected and that they’d “no thought” when it might be again on-line, saying additionally they “have a ignorance at this level.”
