FTX and Binance’s ongoing saga: Everything that’s happened until now.

By Clark

The story between cryptocurrency exchanges Binance and FTX has quickly unpleated and caused disturbance within the crypto market, here’s a breakdown of wherever it began and wherever it’s currently.

Nov. 9 — FTX web site urges against depositing, unable to process withdrawals

FTX’s website toughened period Nov. 9 for around 2 hours and once brought back on-line, came with a warning powerfully advising against depositing which the exchange was unable to method withdrawals.

The warning was additional confirmed in an exceedingly fastened post on FTX’s official wire channel with its administrator voice communication crypto and rescript withdrawals were affected which they’d “no idea” once it might be back on-line, voice communication they conjointly “have a lack of information at this point.”

Nov. 9— SBF reportedly tells investors he wants $8B in emergency funding

Reports emerged on Nov. 9 that Bankman-Fried asked investors for a required $8 billion in emergency funding to hide the “liquidity crunch” caused by user withdrawals over the past few days.

Bankman-Fried reportedly was seeking to lift up to $4 billion from investors, and canopy the remaining add with debt finance and even his own personal fortune to form customers whole.

Nov. 9 — Crypto market in a Sea of red

The crypto market went through the news with capitalist sentiment turning fearful with Bitcoin’s worth touching a multi-year low of $15,600, analysts expected additional draw back, suggesting Bitcoin might settle around the $12,000 mark.

Nov. 9 — Binance formally backs out of the agreement

Less than 48% hours after the initial announcement by Zhao that Binance might move to shop for FTX, Binance proclaimed on Nov. 9 that it’ll not be following the acquisition of FTX.

As a result of company due diligence, similarly because of the latest news reports concerning mishandled client funds and alleged United States of America agency investigations, we’ve got set that we’ll not pursue the potential acquisition of https://t.co/FQ3MIG381f.

— Binance (@binance) November 9, 2022

The exchange cited the according alleged “[mishandling] of client funds and alleged US agency investigations” adding “the problems are on the far side of our management or ability to assist.”

Nov. 8-9 — SBF removes “assets are fine” tweet, FTX websites go dark

Late on Nov. 8, a number of hours once saying the trot out Binance, Bankman-Fried deleted his accusative tweet thread that conjointly claimed FTX and its assets were “fine.” On Nov. 9, the websites for FTX’s working capital arm FTX Ventures and Alameda were taken offline while unconfirmed reports circulated that FTX’s legal and compliance workers quit on Gregorian calendar month. 8. Reports on Gregorian calendar month. nine began to surface that Binance is probably wanting to back out of the agreement.

Nov. 8— FTX faces a “liquidity crunch,” moves to sell exchange to Binance

In a shock announcement, Bankman-Fried said on Nov. 8 that FTX had “come to associate agreement on a strategic transaction” with Binance for the exchange to assist cowl in what he called a “liquidity crunch.” He supplemented “all assets are going to be lined 1:1” and cited this as the main reason FTX asked Binance to step in.

Zhao aforesaid shortly at the moment Binance had signed a nonbinding letter of intent to amass the exchange, however noted they reserved the correct to “pull out from the deal at any time.”

Nov. 8— FTT worth and crypto markets begin to waiver

Some analysts began to warn on Nov. 7 of a major drawdown of FTT thanks to the series of announcements, and timely Gregorian calendar month. 8, the FTT value dove around 30% to around $15.40 from $22 in an exceedingly matter of hours. the value of Bitcoin BTC tickers down $16,280 conjointly began to buckle with fears that FTX might presently be sinking.

Nov. 7 — CZ refuses Alameda’s over-the-counter deal

Responding to a matter on Twitter, C signaled his tolerance in taking on the deal earlier poised by Ralph Waldo Ellison to shop for Binance’s FTT holdings for $22 per token, voice communication “I assume we’ll keep within the free market.”

I did not say that. it had been a matter, not a commitment. I believe we’ll keep within the free market.

We still hold the Roman deity (now LUNC) nowadays.

— CZ Binance (@cz_binance) November 7, 2022

Nov. 7— SBF says “assets are fine,” implores CZ to come back along

Shortly once the exchange addressed user issues, Bankman-Fried laid-off off a series of tweets voice communication a challenger “is making an attempt to travel once to the US with false rumors” and supplemental that “FTX is okay. Assets are fine.”

He claimed the exchange has “enough to cover all client holdings,” that it doesn’t “invest client assets” and has been “processing all withdrawals, and will continue to be.” Bankman-Fried said FTX had $1 billion in excess cash and called on Zhao to “work together for the ecosystem.”

Nov. 7 — FTX “bank-run” begins, exchange addresses sluggish withdrawals

With reports and rumors swirling, FTX users began to withdraw their funds from the exchange for fear it would go bust, and commentators implored those who hadn’t already to get their crypto out of FTX.

Get your funds out of FTX. This is financial advice.

— Ran Neuner (@cryptomanran) November 6, 2022

Reported data from Nansen on Nov. 7 showed stablecoin outflows on FTX reached $451 million over seven days, and users began to report sluggish withdrawals on FTX, with the exchange addressing the withdrawal complaints ensuring users everything was running smoothly.

Nov. 6 — Alameda CEO offers to buy Binance’s FTT holdings

Shortly after Zhao’s Nov. 6 announcement of Binance liquidating its FTT position, Ellison tweeted to Zhao saying Alameda would “happily buy it all” for $22 per share.

@cz_binance if you’re looking to minimize the market impact on your FTT sales, Alameda will happily buy it all from you today at $22!

— Caroline (@carolinecapital) November 6, 2022

Nov. 6 — Binance moves to liquidate FTT holdings due to ‘recent revelations’

Later on Nov. 6, Binance CEO Changpeng “CZ” Zhao said his exchange would liquidate its entire FTT holdings, citing “recent revelations that have come to light” believed to be in reference to the Alameda balance sheet. Zhao said Binance held around $2.1 billion equivalent in Binance USD (BUSD) and FTT due to its FTX divestment last year but didn’t clarify Binance’s current FTT holdings.

He added it would sell the tokens in a way that “minimizes market impact,” expecting the token sales to take “a few months to complete.”

As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have come to light, we have decided to liquidate any remaining FTT on our books. 1/4

— CZ Binance (@cz_binance) November 6, 2022

He also confirmed the Nov. 5 transfer of nearly 23 million FTT was part of Binance’s liquidation move.

Zhao added later the move was “just post-exit risk management,” and referred to lessons learned from the collapse of Terra’s Luna Classic (LUNC) and its market impact, as opposed to being caused by a scuffle on Twitter.

Nov. 6 — Alameda CEO explains the balance sheet

Alameda CEO Caroline Ellison tried to quell any panic in a Nov. 6 tweet saying the leaked balance sheet wasn’t reflective of the whole story and noted that sheet, in particular, was only for “a subset of our corporate entities” and other assets worth over $10 billion “aren’t reflected there.”

– the balance sheet breaks out a few of our biggest long positions; we obviously have hedges that aren’t listed

– given the tightening in the crypto credit space this year we’ve returned most of our loans by now

— Caroline (@carolinecapital) November 6, 2022

Nov. 5 — Trackers pick up significant FTT movement to Binance

On Nov. 5, the Twitter account Whale Alert, which tracks significant on-chain crypto movements, notified its users that nearly 23 million FTT worth over $584.5 million moved onto Binance.

At the time, the amount was worth around 17% of the FTT circulating supply.

Nov. 2 — Reports SBF-founded company held significant amounts of FTT

The saga kicked off on Nov. 2 after reports that a leaked balance sheet from the Sam Bankman-Fried-founded trading firm Alameda Research suggested the company held a significant amount of FTX Token

FTT tickers down $2.77, the native token of the FTX cryptocurrency exchange.

A large trading firm holding so much of one asset concerned the crypto community and brought questions regarding the relationship between Alameda and FTX.