While the future of the platform is threatened, the price of Bitcoin has unscrewed. It passed on Wednesday under the mark of $ 16,000, for the first time in two years.
“We decided not to follow up on the FTX acquisition operation. Com”, explained Binance in a Tweet , Wednesday, November 9. The cryptocurrency platform will not come to the rescue of its rival FTX. com, contrary to what she had announced previously.
“At the beginning, our hope was to be able to help FTX customers to provide liquidity, but the problems escape our control or go beyond our ability to help,” noted Binance.
It mentions the results of an audit, as well as the appearance of press information on mismanagement of customer funds by FTX and in surveys initiated by the American authorities.
The future of FTX. com, and its founder Sam Bankman-Fried, is now uncertain. The platform needs 8 billion dollars.
ftx was however still considered recently as a solid player in the sector. Its founder is a figure in the world of cryptocurrencies, and FTX had been valued, during its last fundraising in January, 32 billion dollars.
But doubts have emerged in recent days on its accounts and its relations with the investment fund in cryptocurrencies Alameda, also founded by Sam Bankman-Fried.
On the platform’s help page was displayed the following message: “FTX is currently unable to process withdrawals. We are strongly advised against deposits.”
These turbulence shakes the cryptocurrency sector, already scalded in recent months by several bankruptcies and the preference of investors for less risky assets. Bitcoin dropped on Wednesday below 16,000 dollars for the first time in two years. 2> Lobbying 2>
The situation of FTX deteriorated in a few days. Sam Bankman-Fried had so far described criticisms on the financial health of his company “unfounded rumors” and still assured Monday: “ftx is well”.
But the clients of the platform heard it from another ear and began to withdraw their funds en masse. Sam Bankman-Fried then turned to his rival to try to save the furniture.
An astonishing request from this entrepreneur, who was still recently compared to a white knight after having proposed in June to come to the rescue of companies related to digital currency blockfi and travel digital.
He was also known to regularly lobby with politicians in Washington for increased regulations in the cryptocurrency sector.