FRIDAY FLASHBACK: THE FTX FALLOUT, THE BEAT GOES ON 🥁🪘

We normally slide into Fridays with ‘Friday Flashback’ but not today! If you’ve been keeping up with the posts you’ll realize that after we posted on Friday last week I mentioned that the only posts this week would be Tuesday and Friday, so now here we are today!

It seems that the FTX collapse has no end, every day since it started I’ve seen more and more that have the potential to give me the creeps. The FTX saga is giving many people cause for concern and as this is an unregulated corridor of the larger financial sector, it is probably sending ripples of anxiety to those in financial leadership.

As the days go by and more facts have come to light, this story surrounding FTX has become more complicated and quite possibly, criminal.👀 For some reason they began to experience liquidity issues and turned to Binance, the world’s largest exchange for cryptocurrencies, for help.

That deal quickly fell through though. Binance’s Chief Strategy Officer said that it took his company two hours of due diligence on FTX to determine that Sam Bankman-Fried’s crypto exchange was beyond saving. “It was like a bomb went off in that place,” Patrick Hillmann, Binance CSO, told CNBC on Thursday. “You know, we’re getting on calls, people are crying. ... It was complete pandemonium over there,” Hillmann said, adding that when “Sam went completely silent on them, the entire organization just fell to pieces.”

FTX ended up filing for Chapter 11 bankruptcy protection a week ago. This is wild, y’all! This company went from $32Billion dollars to bankruptcy in no time at all! There was also a class action lawsuit filed a couple of days ago, in a Florida federal court alleging that Sam Bankman-Fried (CEO) created a fraudulent cryptocurrency scheme that was designed to take advantage of immature investors. Some celebrities named in the lawsuit include Steph Curry, Shaquille O'Neal, Shohei Ohtani, Naomi Osaka, Larry David, and Kevin O'Leary.

According to CNBC, somewhere between $1B and $2Billion dollars of FTX customers’ funds have just disappeared! The article on CNBC states, “FTX was in the midst of a liquidity crunch, with customers demanding billions of dollars in withdrawals a day. It was money that FTX didn’t have because it was using client deposits for other purposes.” So it seems like Binance technically had 30 days to explore a deal, but the very next day it backed out of the plan.🤷🏾‍♀️ Stay tuned, we’re gonna dig into it some more!

Crypto Devo will take next week off for Thanksgiving and we will be back on the following Monday. Enjoy the weekend, and HAVE A HAPPY THANKSGIVING! 🙏🏿🤗 🦃🍁🍂

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