FTT price turns bullish as SBF claims FTX exchange was never insolvent – Crypto News – Crypto News
Connect with us
FTX Token FTT FTX Token FTT

Technology

FTT price turns bullish as SBF claims FTX exchange was never insolvent – Crypto News

Published

3 months ago

on

  • Sam Bankman-Fried and his team continue to defend themselves.
  • SBF’s X account posted a long document on Thursday claiming the exchange wasn’t actually insolvent.
  • FTT has decoupled from broader dips with a 2% uptick.

An X account, currently controlled by a friend of Sam Bankman-Fried, stirred the cryptocurrency market with a post claiming that the firm wasn’t insolvent.

The 15-page document claims FTX encountered a liquidity crisis that “was on track to be resolved by the end of the month” until the exchange’s external counsel assumed control. It declared:

FTX was never bankrupt, even when its lawyers placed it into bankruptcy.

The disgraced founder and his team supposedly wrote the document, which highlights that the exchange didn’t file for bankruptcy after a plan to commit fraud and mishandle billions of customer funds, as the court concluded.

They insist that FTX encountered a liquidity crunch after “a sudden shortage of cash.

Meanwhile, the exchange’s native token, which has survived without solid utility since FTX’s debacle, turned bullish amid the developments.

FTT gained more than 2% on its daily chart to trade at $0.8473.

Its trading volume has increased by over 25%, indicating optimism.

For context, the global crypto market capitalization remained muted the past 24 hours with a mere 0.08% uptick to $3.7 trillion.

FTX had enough funds during the collapse

The document argues that the cryptocurrency exchange and sister company Alameda boasted assets worth $25 billion, alongside $16 billion in equity value, against liabilities worth $13 billion, as it fell in 2022.

That means a net value of approximately $28 billion. It added:

During the crisis, the value of the assets and (presumably) equity took a temporary hit, but even at the peak of the crisis, the companies remained solvent – even if one were to ignore equity.

SBF and his team claim their empire would be worth roughly $136 billion if lawyers didn’t sell assets that they invested in.

That would comprise a $7.6 billion stake in Robinhood broker, $14.3 billion investment in AI startup Anthropic, among other assets.

Community response

However, cryptocurrency enthusiasts and online investigators aren’t buying SBF’s claims.

Some believe these are desperate attempts to secure a pardon, after Donald Trump’s similar move on Binance founder CZ.

Meanwhile, some questioned why FTX suspended withdrawals if it had enough money for creditors.

A DeFi enthusiast and X user, Hanzo, referenced the incident where Bybit suffered $1 billion ETF scam, stating:

Many CEXs went through stress tests after some massive fuck ups, and they all are here.

FTT price outlook

FTX’s native token gained more than 2% amid these developments.

It is hovering at $0.8473, with soaring trading volumes highlighting enthusiasm.

Nevertheless, FTT recoveries will likely be short-lived.

Broader market weakness and negative community reaction to the team’s claims weigh on the digital token.

Share this article
Categories
Tags

Related Topics:
Continue Reading

Trending