By Pam Martens and Russ Martens: November 10, 2022 ~
FTX, the second largest crypto exchange, is teetering near bankruptcy this morning; has shuttered withdrawals of money and crypto by its customers; and is dealing with investigations by the Securities and Exchange Commission, the Commodity Futures Trading Commission and the U.S. Department of Justice. At least one of those investigations is focusing on the potential misuse of customer funds between FTX and Alameda Research, a trading firm created by FTX founder and CEO, Sam Bankman-Fried. The Wall Street Journal reports that FTX has a “shortfall of up to $8 billion.”
A deal by the largest crypto exchange, Binance, to buy out FTX as it faltered, was scrapped yesterday after due diligence lawyers for Binance didn’t like what they saw.