“We got overconfident and careless” – FTX founder SBF
Sam Bankman-Fried, aka SBF, founder of FTX, is continuing with his bizarre tweets that began two days ago. SBF’s recent tweet acknowledges that he was carried along with all the fame and glory, which led to his overconfidence. The US Congress has announced that it will hold a hearing regarding the FTX collapse, Binance included.
SBF blames FTX’s collapse on high leverage
The FTX crisis exposed the entire crypto industry, and many companies are now facing serious financial problems. SBF continued his twitter thread, explaining his reasoning behind the FTX crisis. SBF claims that he was wrong about the leverage he calculated to be $5 billion. SBF cites $13Billion leverage and the FTT token price crash for the ultimate reasons for FTX’s demise.
The crypto community continues to demand strong legal action against SBF, despite his arguments. One twitter user accused SBF theft of users funds. Crypto community believes that Alameda used user funds at FTX to make their investments.
More crypto companies are facing similar fates to FTX
Many entities are finding it difficult to carry out day-to-day operations because of the FTX crisis. Yesterday’s news about BlockFi declaring bankruptcy shocked the crypto community. Today, the crypto community was talking about Genesis Global capital and Gemini Exchange.
Genesis Global, a company with $2.8 billion in active loans, today decided to stop customer withdrawals. It is worth noting, that Genesis was also affected by the Terral Luna collapse earlier in the year. Investor panic ensued today when the Gemini crypto exchange crashed. Although the outage was brief, users were unable to withdraw funds for hours.
Gemini is now online again and withdrawals are normal. However, FTX failure is not a temporary event and the worst isn’t yet behind.
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