1. FTX declared bankruptcy and stopped processing withdrawals for everyone - including crypto hedge funds which has created a lot of contagion
  2. FTX got hacked; SBF apparently had built some sort of backdoor
    1. Alameda Amassed Crypto Tokens Ahead of FTX Listings, Public Data Shows
    2. The exchange's founder Sam Bankman-Fried secretly transferred $10 billion of customer funds from FTX to Bankman-Fried's trading company Alameda Research
  3. The VC companies absolutely failed in all terms of due diligence
  4. The balance sheet is a nightmare
    1. FTX held less than $1bn in liquid assets against $9bn in liabilities
    2. The vast majority of FTX Trading’s recorded assets are either illiquid venture capital investments or crypto tokens that are not widely traded, according to the spreadsheet
    3. The largest portion of those liquid assets listed on a FTX international balance sheet dated Thursday was $470mn of Robinhood shares owned by a Bankman-Fried vehicle - FTX Trading’s assets were $900mn of “liquid” assets, $5.5bn of “less liquid” assets consisting of crypto tokens, and $3.2bn of illiquid private equity investments. There is also an obscure $7mn holding called “TRUMPLOSE”. There are no bitcoin assets listed, despite bitcoin liabilities of $1.4bn.
    4. negative $8bn entry described as “hidden, poorly internally labled ‘fiat@’ account”. Bankman-Fried told the Financial Times the $8bn related to funds “accidentally” extended to his trading firm, Alameda,
    5. FTX’s two  largest asset balances, “before this week,” were $5.9 billion of FTT ($553 million at post-crash prices last Thursday) and $5.4 billion of SRM ($2.2 billion post-crash).
      1. The company’s biggest asset as of Thursday was $2.2bn worth of a cryptocurrency called Serum. Serum’s market value was $88mn on Saturday, according to data provider CryptoCompare, suggesting FTX’s holdings would be worth far less if sold into the market. CryptoCompare’s figures take into account the coin’s liquidity.
  5. SBF could get 20 years in prison.
  6. Binance becomes a central bank: To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify
  7. Crypto dot com accidentally transferred $400 million worth of ETH to another exchange