Events are moving fast as the cryptocurrency market is rocked again, this time by FTX. Facts and non-facts are difficult to separate under these conditions, especially since both seem to lack credibility at times. “Where is the money?” and “Who’s to blame?” are very popular topics of conversation. Some of the information that appears is unquestionably false, or at least highly speculative.
The situation has given rise to crazy stories, like this tweet that appeared (and disappeared) on November 10:
Rumors are not always harmless, as became clear when Tether experienced instability due to “evidence” that FTX and Alameda were trying to short the stablecoin. Tether denied having any exposure to Alameda or FTX.
The current status of FTX recalls has also been a source of confusion, possibly because the status of recalls remains confusing in real life. FTX is not using “the normal process of queuing withdrawals”, said an observer, and there are a variety of potential causes.
There are a few scenarios here:
1. They’re prioritizing friends and family
2. They found a backer
3. Rouge employee free for all— Steven (@Dogetoshi) November 10, 2022
There are several scenarios here:
1. They are prioritizing friends and family
2. They have found a sponsor
3. Clerk Rouge free for all
1/ Multiple people have pointed out that the “withdrawals” – which seems to have started again – from @FTX_Official are towards addresses that look …almost fishy?https://t.co/x4IaEECd0a
— Jason Choi (@mrjasonchoi) November 10, 2022
Multiple people have pointed out that @FTX_Oficial “withdrawals” -which seem to have started again- are to addresses that seem…almost suspicious?
In the meantime, some FTX employees may not be receiving their salaries:
Receiving dozens of messages from FTX employees similar to this:
“Please do not harass us. We had no idea of what was going on. We were getting paid through Crypto and on our FTX account. We have no access to our money. We have been asking Sam about our salary but no answer.”— Autism Capital (@AutismCapital) November 10, 2022
Receiving dozens of messages from FTX employees similar to this:
“Please don’t harass us. We had no idea what was going on. We were paid using cryptocurrencies and in our FTX account. We don’t have access to our money. We have asked Sam about our salary but no response.”
Anon tip-off in DMs.
Seems like a reasonable explanation until proven otherwise… pic.twitter.com/XA4TGUw0Ls
— DeFiyst (@DeFiyst) November 10, 2022
An anonymous notice in the DMs.
Seems like a reasonable explanation until proven otherwise…
The CEO of FTX, Sam “SBF” Bankman-Fried, warned to employees who might have to wait, according to a leaked internal communication from FTX. There’s plenty of room for irregularity here, and at least one potential scandal surfaced, only to be quickly denied:
*VERIFY*: “Dirty secret is that FTX and ramnik were secretly paying jai bhavnani and other rari guys under the table to build tooling and protocols and sybil as many airdrops as possible across both apts and sui while having them constantly pump both chains to unknowing retail.”
— Autism Capital (@AutismCapital) November 10, 2022
*TO BE VERIFIED*: “The dirty secret is that FTX and Ramnik were secretly paying Jai Bhavnani and other Rari guys under the table to build tools and protocols to serve as many airdrops as possible, both in Aptos and in Sui, while causing both chains to be constantly promoted to unknowing retailers.
Not once have I considered launching a protocol on Aptos or Sui.
Much less with a token. Didn’t turn out so well my first time.
— Jai (@Jai_Bhavnani) November 10, 2022
Not once have I considered launching a protocol in Aptos or Sui.
Much less with a token. It didn’t go very well my first time.
Bhavnani is the founder of decentralized finance protocol Rari Capital, which suffered a $10 million hack last year.
In such a news environment, it’s tempting to think out loud and in public.
tabasco imploded alameda by being as degen as 3AC & LUNA and got FIRED… sam & caroline been in damage control since… am i the only one who thinks this?
— Foresight Potentials ♟️ Microdosed Capital (@polymath_gray) November 9, 2022
Tabasco imploded Alameda for being as degenerate as 3AC & LUNA and got fired… Sam and Caroline have been in damage control ever since… am I the only one who thinks this?
It can be reasonably assumed that the finger-pointing, self-righteousness, and soul-searching have only just begun. The SBF has apologized profusely and publicly. Meanwhile, newly re-elected Minnesota Rep. Tom Emmer has claimed that “reports reaching my office” indicate that SBF and Gary Gensler were working together to “obtain a regulatory monopoly.”
The CEO of Galaxy Digital, Michael Novogratz probably had an important insight when he pointed out SBF’s magnetism and fashion sense.
“Does it feel illegal? We’ll see. It certainly seems immoral. I’m furious actually,” he says @novogratz on @SBF_FTX. “This is a tale as old as time. Some young charismatic guy in Bermuda shorts with the floppy hair charmed the 20 best investors and regulators in the world.” pic.twitter.com/4a495VK8mt
— Squawk Box (@SquawkCNBC) November 10, 2022
“Does it feel illegal? We’ll see. It certainly seems immoral to me. I’m actually furious,” says @novogratz on @SBF_FTX. “This is a tale as old as time. A charismatic young man in shorts with tousled hair charmed the top 20 investors and regulators in the world.”
“This is a tale as old as time”, Novogratz said. His company has $77 million of exposure to FTX.
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