Nansen restored the chronology and found the root cause of the collapse of FTX
About 86% Utility Tokens FTX (FTT) were originally controlled by the Bitcoin-Tirges itself and also associated with Sam Bankman-Fried Alameda Research. Such conclusions are contained in the study of Nansen.
The company’s specialists revealed a group of wallets that indicated the role of Alameda Research as one of the first liquidity suppliers for FTX in May 2019.
Of the initial 350 million issues FTT 280 million were controlled by the exchange itself.
27 million out of 59.3 million FTT, placed during private and sowing rounds, allegedly ended up on the Alameda wallet in FTX.
All exchange tokens, including most unsaturated ones, deposited to the address with the three -year sowing of the trading company as the only beneficiary.
According to analysts, this led to limiting the liquidity of tokens, which made them susceptible to manipulations.
In the conditions of the bull market 2021, when the price of FTT took off from $ 0.1 to $ 84, the affiliated organizations decided not to “not sell to the market”, but to use tokens as security for borrowing. In September of the same year, Alameda Research thus used FTT worth $ 1.6 billion in the transaction with Genesis Trading.
Bankman-Frida trading company directed the received funds for the Utility Token Pampu and, as a result, increase the possible leverage.
This scheme worked until the Terra collapse of the market fall in June 2022.
With the cessation of the activities of firms such as Three Arrows Capital and Celsius, which were related to Genesis Trading, Alameda, probably collided with Delaverida and liquidity crisis, experts said.
Problems could be solved by selling FTT for cash. A side effect would be a drop in the price of the asset and “infection” ftx.
Onchain-data showed a transfer of tokens in the May-June of Alameda to the https://gagarin.news/news/white-bit-to-collaborate-with-the-netflix-streaming-platform/ exchange wallet in a total of ~ $ 4 billion with the subsequent possible loan for a similar amount, confirmed by informed sources.
Experts admitted that emergency funding received by a trading company could consist of FTX client funds.
The problems were revealed on November 6, when CEO Binance Chanpen Zhao decided to get rid of ftt. Assets together with Busd in a total of ~ $ 2.1 billion steel by the company output from portfolio investment in FTX. The impetus for this could be the Coindesk investigation, which gave the details of the Alameda Research reports indicating the high fraction of FTT in the balance sheet.
This step scared investors and at the same time caused both bankruptcy of the exchange and strong pressure from the sellers on Utility Token, indicated in Nansen. Soon, users realized that FTX does not have sufficient liquidity.
On November 11, the exchange, Alameda Research and about 130 more affiliated firms have submitted bankruptcy proceedings.
Earlier, Glassnode analysts drew attention to the coincidence of the start of the trend of decreasing FTX bitcoin reserves with the Terra ecosystem collapse.
Coin Metrics experts suggested that the “large financial assistance” that she provided to Alameda Research in the second quarter of 2022 could be a possible cause of the collapse of the exchange.
In September, Bloomberg indicated a potential conflict of interests between FTX and a trading company based on the analysis of network data.
Recall that the US Congress became interested in the role of Binance in a sudden collapse of a competitor. Hearing on this topic will be held in December.
On November 16, Genesis Trading froze the withdrawal of funds and the issuance of new loans.
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