Former FTX CEO Sam Bankman-Fried has received a significant share of criticism following the sudden collapse of the FTT token and its subsidiaries. With a congressional hearing on FTX collapse slated for next month, Bitcoin maximalists have taken to the social media stages to advocate for its prowess.
Jack Dorsey – a bitcoin supporter and advocate – has expressed his disapproval of the SBF and FTX’s approach to the digital market. Echoing the old crypto slang ‘don’t trust anyone’, Dorsey admitted that he was contacted by the SBF a few days before the FTX meltdown.
However, Dorsey indicated that he reported the text messages as junk to the network provider and Apple team. As such, the conversation did not continue from there, per the public report.
According to a Reuters report, SBF spent the night before filing for Chapter 11 bankruptcy calling on deep-pocketed investors to bail out FTX. Listed investors who requested more than $7 billion include Sequoia Capital, Apollo Global Management Inc and TPG Inc.
Nonetheless, the investors declined SBF’s request, citing gross anomalies in the company’s balance sheet. Moreover, FTX was doing ‘well’ per the public quarterly earnings report until the second quarter of 2022, when the company recorded a net loss of over $161 million.
While SBF, FTX, and Alameda Delaware continue to hide behind men in litigation through court proceedings, an estimated 1 million customers and investors are counting significant losses. In addition, SBF reportedly used $10 billion in client funds to run its trading business.
While his operations remain unclear, it is reported that SBF used an estimated $40 million to sponsor the 2022 midterm elections in the United States.
The Big Picture on the FTX Meltdown
The FTX meltdown has been both a blessing and a curse for the cryptocurrency market. For example, rival companies Coinbase Global and Binance crypto exchange have come together through Trust Wallet to enable secure and rapid adoption of Web3 technology.
On the other side, confidence in the crypto market has been severely shaken, despite an ongoing investigation by the U.S. Department of Justice, the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC).
Meanwhile, the bearish sentiment in the crypto market remains, led by the price of bitcoin over the past two weeks. According to our latest crypto price oracle, bitcoin is trading around $16,500, down about 1.3 percent in the past 24 hours.
