After reports of insufficient liquidity surfaced, many investors have been left in the middle of a battle at the third-largest cryptocurrency exchange. As the fifth day of FTX’s decline approaches, the crypto community continues to be inundated with rumors and conspiracies.
SBF was desperate to raise $8 billion to keep his cryptocurrency business afloat. But, if the reports are correct, an arrest will stand in the way. Lucas Nuzzi, Director of R&D at CoinMetrics, says the current sell-off is a direct result of the actions of FTX and Sam Bankman-Fried.
Alameda Research, another subsidiary of SBF, received a substantial bailout from FTX. Unfortunately, this bailout likely took a toll on FTX’s balance sheet to the point that it went bankrupt.
After confirming that SBF was being held at the Bahamas airfield, FTX exchange employees were rumored to be trying to sell their shares of the company.
The NFT founder retweeted a map from Flightradar24 showing a private plane en route from Nassau, the capital of the Bahamas (FTX’s headquarters), to Miami, which was grounded for about 40 minutes.
Respondents to the tweet raised the possibility that the private plane could transport FTX’s CEO. Some even posted manipulated SBF footage that looked like police arrests. Nevertheless, this footage wasn’t enough proof that law enforcement agents arrested SBF.
FTX Employees Jump Ship
While the CEO is abroad, some stock market officials are already attempting to liquidate the company’s assets, according to multiple reports. Such assets include Embed, a stock clearing platform, and Miami’s FTX Arena naming rights.
Additionally, a social media post claimed that many FTX employees invested their savings in the company because they trusted SBF. In addition, some reports claimed that SBF offered exchange employees a 50% capital rebate last spring.
FTX’s assets have been frozen, according to an official statement from the Securities Commission of The Bahamas (SCB). SCB claims that the freeze will protect the exchange’s assets in the event of a bankruptcy declaration.
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