FTX, formerly known as the prominent crypto exchange run by the billionaire Sam Bankman-Fried, has trembled the whole crypto industry with its epic collapse. As a consequence, the crypto exchange was compelled to file for bankruptcy due to the excessive losses. Apart from that, the entities under FTX additionally went through an apparent exploit of up to $600M after the bankruptcy filing. It all started during the early days of November 2022. Now, it is being feared that FTX's fate is similar to the Terra Luna crash. Below is a sequential timeline of this entire event for our regular blog readers to give them a brief description of the whole scenario.

Timeline

The Reports reveal in November’s start that Bankman-Fried’s trading company Alameda Research had made a huge investment in the FTT token according to the balance sheet of FTX. On the 6^th of November, Changpeng Zhao (the CEO of Binance) declares that he would sell his remaining funds in FTT (the local token of the exchange). A few moments later, Alameda Research’s CEO expresses an intention to purchase FTT tokens of Zhao for $22 per token.

On the 8^th of November, the price of the FTT token Declines lower than $22. Subsequently, Zhao’s Binance declares the signing of an agreement with FTX under a non-binding intent letter to purchase the troubled crypto exchange. The contract seems to rescue FTX and minimize the panic in the industry. Binance clarifies that it has a right to leave the deal whenever it likes.

On the 9^th of November, Binance reportedly starts pulling back against its previous decision to assist FTX by purchasing it after going through the company’s records as well as loans. On the same day, Zhao’s exchange formally quits its contract of FTX acquisition while levelling some allegations against FTX as fraud and manipulation of the user funds. In this Scenario, Justin Sun proposes the idea of saving FTX without providing any details.

On the 10^th of November, Bankman-Fried announces the collapse of Alameda Research (the main entity in the whole epic). After that, the Bahamas-based regulator seizes the assets possessed by SBF's exchange.

On the 11^th of November, FTX submits a bankruptcy protection filing in the United States.

On the 17^th of November, the regulator directs the transfer of the assets of the exchange to its digital wallet to secure them under the order issued by the Supreme Court.

General Perception About the FTX Incident

The public opinion about the incident is mainly that FTX couldn't handle the client funds securely and as a result, it went into a liquidity crisis. However, in all this situation, Binance has landed itself in hot waters. The Treasury Committee of the UK parliament has asked Binance to show more evidence (correspondence) as it is not satisfied with the details provided by the top crypto exchange yesterday. Furthermore, a member of the Treasury Committee, Alison Thewliss, fears that this FTX downfall will leave such an impact that will haunt the crypto industry for long period.

Keep visiting our blog for more updates regarding the collapse of FTX and its impact on the DeFi market. We deliver authentic and verified news for our respected readers. Keep reshing!