At the third-largest cryptocurrency exchange, many investors have been caught in the crossfire following allegations of insufficient liquidity. This exchange is currently in fourth place overall. The cryptocurrency world is being swamped with speculations and theories as the fifth day of FTX's drop draws closer.
In order to keep his cryptocurrency business afloat, SBF was doing everything he could to raise $8 billion. However, if the reports are accurate, there will be an obstacle in the form of an arrest. The current sell-off, according to Lucas Nuzzi, Director of Research and Development at CoinMetrics, is a direct outcome of the actions taken by FTX and Sam Bankman-Fried.
In addition to SBF's other subsidiaries, Alameda Research benefited greatly from FTX's financial assistance in the form of a bailout. Sadly, the cost of this rescue probably caused FTX to go bankrupt as a result of the damage it caused to the company's balance sheet.
After it was established that SBF was indeed being detained at the airstrip in the Bahamas, rumors began to circulate that workers of the FTX exchange were attempting to unload their shares of the company.
One of the first people to distribute information about SBF's arrest was PAULY.SOL, the inventor of the Not Larva Labs non-fungible token (NFT) project.
A private plane en route from Nassau, the capital of the Bahamas (where FTX's headquarters are located), to Miami was forced to make an emergency landing for almost forty minutes, according to a map that was retweeted by the founder of the NFT.
Several of the people who responded to the tweet brought up the potential that the private plane could be used to transfer the CEO of FTX. Some even shared edited SBF footage that appeared to be arrests carried out by law enforcement. Despite this, the footage did not provide sufficient evidence that law enforcement officers apprehended SBF.
Employees of FTX Abandon Ship
According to various sources, while the CEO is away on business, some stock market regulators are reportedly already seeking to sell the assets of the company. These assets include the stock clearing platform known as Embed as well as the name rights to the FTX Arena in Miami.
In addition, one of FTX's workers allegedly claimed in a post on social media that they trusted SBF enough to put their savings in the company because of it. Furthermore, according to a number of publications, SBF allegedly provided staff of the exchange with a capital rebate of fifty percent in the spring of last year.
According to a statement released by the Securities Commission of The Bahamas, all of FTX's assets have been placed under a temporary freeze (SCB). SCB asserts that the freeze will protect the assets of the exchange in the event that a declaration of bankruptcy is made.
