The Alameda and FTX Saga continues to add more layers as their websites go offline on Wednesday, Nov. 9. As of press time, public access to both websites– Alameda-research.com and ventures.ftx.com— appears to have been disabled.
- Rumours of both firms’ insolvency had spread earlier this week after Alameda balance sheets leaked to the public, revealing a red balance.
- FTX had also disabled withdrawals on its platform as it could not meet several requests that followed reports of insolvency. As a result, many users have been unable to retrieve their funds.
- Meanwhile, the entire crypto market has reacted negatively to the recent developments. Furthermore, a Solana unlock of almost 1 billion tokens by validators scheduled for today, is likely to cause a further market cascade.
- Solana is trading at $14 at the time of writing this report after falling by 41%.
- There’s also the report that FTX’s legal and compliance team has exited the firm. This presents an even gloomy image of the once leading crypto exchange with various expansion strides.
- FTX appears to have mismanaged users’ funds, several reports suggest. The exchange reportedly bailed out Alameda Research which was impacted by the LUNA/UST debacle in May with its customers’ deposits.
- FTX’s CEO Sam Bankman-Fried (SBF) dismissed reports about the exchange’s insolvency earlier. While rival exchange Binance tried to lend a helping hand, due diligence into FTX’s books has made such a deal impossible.
- Meanwhile, SBF has declared bankruptcy, confirming rumours that users will not get their funds back. Several VCs and investors were also affected. Sequoia Capital released a statement earlier today, noting that it was marking its $230 million investment in FTX down to zero.
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