🎧 Listen: In today's episode of The Journal podcast, reporter ceostroff explains how FTX went from a leader in the world of cryptocurrency to facing an $8 billion shortfall after Binance walked away from a rescue attempt
This transcript was prepared by a transcription service. This version may not be in its final form and may be updated.Caitlin Ostroff: Oh, dear God. Yeah, raise a glass to all of the crypto reporters who haven't slept in a week. Like this feed of it, I think, has surprised everyone. I mean, things move fast in crypto, but the speed and the depths of the potential ripples are really... honestly, I think everyone's been surprised by it. So yeah, it's been a lot.
Ryan Knutson: Welcome to The Journal, our show about Money, business and Power. I'm Ryan Knutson. It's Thursday, November 10th. Coming up on the show, the surprising and sudden crisis at one of the biggest names in crypto. The current drama in the crypto world actually involves two companies, FTX and Binance. Both are cryptocurrency exchanges, meaning they're basically a middle man where people can buy and sell crypto. We'll start the story with FTX, which was founded in 2019.
Caitlin Ostroff: They were really throwing money around at kind of getting their name out there and from people I've spoken with at FTX, they really were putting an emphasis on these partnerships and these ways that they could become more visible because they had these ambitions to be this great crypto trading exchange, but they weren't quite a household name.
Caitlin Ostroff: Sam parading around as the face of crypto in Washington, it certainly rankled other people and I think some of the trust that the regulators had within him did bother other people broadly in crypto where he's presenting himself as the JP Morgan of crypto at the moment, but we don't necessarily agree with all of the policies that he's advocating.
Caitlin Ostroff: There were little bits of tension that did spill out onto Twitter and the regulatory angle of that did wind up coming out in some of Sam's Tweets. So there was a Tweet a couple of weeks ago from Sam in which he made a jab at Changpeng Zhao of saying, "Is he even allowed in Washington DC?" And we've reported in the past that there are probes into Binance's activities by the Securities and Exchange Commission and the Department of Justice.
Caitlin Ostroff: And so that propelled a chain of reaction that really knocked Bitcoin down quite a bit, along with other cryptocurrencies. And so the backdrop going into this was already one of a so-called crypto winter, basically the idea that everything's chilled, nothing's going to be rising for a while.
Caitlin Ostroff: So basically they had a bunch of FTX's own currency on their balance sheet, like a lot of it. Caitlin Ostroff: Yeah, exactly. And then on top of that, if it was all built on this cryptocurrency that was issued by one of the companies that if you lose faith in the company, you lose faith in the crypto and vice versa. And so the fear was that it was a lot of hot air.
Caitlin Ostroff: Originally, Sam came out on the defense. He said that that funds were protected and basically trying to make the case that there was no financial issues and that everything was fine and everything would be processed and things weren't that bad. Caitlin Ostroff: So we have this solid 24 hours in which we're all working off the assumption that Binance is likely going to acquire FTX. And then 24 hours later, The Journal hears from our sources, that that's not going to happen.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Bitcoin losses continue after Binance quits FTX dealBitcoin's Wednesday losses continued amid news that Binance will not buy the beleaguered crypto exchange FTX.
Weiterlesen »
Binance agrees to buy rival FTX in major crypto shake-upBinance, the world's largest cryptocurrency exchange, says it is buying rival FTX, run by Democratic mega-donor Sam Bankman-Fried.
Weiterlesen »
Binance-FTX Deal Will Bring Regulatory 'Scrutiny’ on Crypto Exchanges: Blockchain Association’s Kristin Smith.KMSmithDC, executive director at the BlockchainAssn, and U.S. Rep jahimes, discuss the FTX_Official and binance debacle and what it could mean for the regulation landscape of crypto exchanges in future. _franvela reports
Weiterlesen »
Binance backs out of FTX rescue, leaving the crypto exchange on the brink of collapseBinance is backing out of its plans to acquire FTX, the company said Wednesday.
Weiterlesen »
Crypto investors rattled as Binance is reportedly abandoning its proposed acquisition of rival FTXBinance, the world’s largest crypto exchange, is reportedly unlikely to follow through with its proposed acquisition of the non-U.S. assets of rival FTX,...
Weiterlesen »
Rep. Jim Himes on Binance-FTX Deal, Crypto Regulation OutlookU.S. Rep. Jim Himes (D-Conn.), who recently won reelection, discusses his reactions to cryptocurrency exchange Binance's takeover of rival FTX. Plus, his take on the outlook for crypto regulation following the midterm elections.
Weiterlesen »