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FTX funds on the move: bankruptcy proceedings, insider threat or a hack?

Published 11/12/2022, 12:30 AM
Updated 11/13/2022, 02:40 AM
FTX funds on the move: bankruptcy proceedings, insider threat or a hack?

The recent tensions between the two major crypto exchanges FTX and Binance, which was accompanied by a massive selloff of FTX Token (FTT), resulted in the collapse of roughly 130 companies linked to FTX Group — including FTX Trading, FTX US, West Realm Shires Services, and Alameda Research.

Following the resignation of FTX CEO Sam Bankman-Fried and the revelation of the company’s intent to file for Chapter 11 bankruptcy, on-chain data hinted at the commencement of bankruptcy proceedings as multiple FTX wallets were found transferring funds over to a common Ethereum (ETH) wallet address.

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1. FTX/Alameda Research take the opposite sides of the customer trades (seem familiar?)2. Spoof the order book with 98.1% fall-through3. Pumped/dumped BTC from 28k - 69k and SOL up to 200$4. Lobbied to the government through hefty donations which ended up moving too slowly and resulted in his demise before anything could get implemented5. FTX uses Alameda as the powerhouse market mover to ensure that they always make money.6. Loaded up Alameda with a stupid amount of USDT [https://protos.com/tether-papers-crypto-stablecoin-usdt-investigation-analysis/](https://protos.com/tether-papers-crypto-stablecoin-usdt-investigation-analysis/) to perform their market moving bs.Tether is used as their 'collateral' since it can theoretically be redeemed at the rate of 1$. The huge problem is that it is a **fractional reserve** itself. If these big players like FTX are taking out leveraged positions and holding fractional reserves against tether which is also a fractional reserve.....
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