Saving Private Bankman: Nobody Wants to Take Risks

Saving Private Bankman: Nobody Wants to Take Risks Binance refused to buy rival exchange FTX. Due diligence revealed evidence of misuse of client capital and pending US fiscal investigations into the exchange led Changpeng Zhao (CZ) to cancel the deal.BTC continues to decline  the $10,000 zone is seen as a very likely target. ETH lost over 15% and Solana lost almost 50%. Polkadot, Avalanche, Dogecoin, hedge funds and private equity firms have been hit hard.Among those involved in FTX's October 2021 funding round are Tiger Global Management, Temasek Holdings, Sequoia Capital, Lightspeed Ventures and the Ontario Teachers' Pension Plan. Their capital was issued in FTT, the service token of the FTX exchange, the price of which fell by more than 75%.Sam Bankman-Fried or SBF (60th Forbes) lost 94% of his fortune overnight: now the value of his two main crypto assets  FTX and Alameda Research  is $1 each.What is the reason for such a rapid collapse?Bankman-Fried actively exploited gaps in the law to maximize profits from both cryptocurrency transactions (FTX) and asset management (Alameda). The companies acted as mutual guarantors. When Alameda Research was accused by Coindesk of using the branded token as the main source of liquidity for FTX, investors began to sell FTT in a panic, which immediately created a liquidity shortage of $6 billion for the exchange.To cover the shortfall, Alameda and FTX started selling off their own reserves, mainly Solana (more than $1 billion), and locked tokens too. As a result, both tokens have critically depreciated and now there is nothing to cover the losses. The capital of investors and the crypto billionaire himself simply evaporated.FTX declined to comment on the situation, but global problems due to this scandal are just beginning.Profits to yall!