Alameda Research and FTX Ventures websites go dark
Websites linked to the crypto exchange FTX have been taken down on Nov. 9, following a liquidity crisis and a pending acquisition of the company by its rival Binance. Websites for Alameda Research and the company's venture capital arm FTX ventures were offline and made private, while both FTX's main site and FTX US's website remain accessible.
Cointelegraph reached out to Alameda on Nov. 9, but has not heard back as of publication time. The latest developments include unconfirmed reports about most of FTX's legal and compliance staff quitting on Tuesday evening.
The liquidity crunch was announced on Nov. 8 by FTX founder and CEO Sam Bankman-Fried, or SBF, just hours after he guaranteed that the client's "assets are fine", adding that the exchange did not invest clients holdings, even in treasuries.
The crisis unfolded after Binance CEO Changpeng Zhao, or CZ, disclosed the decision to liquidate Binance's position of 23 million FTX token (FTT) — worth over $520 million at the beginning of this week — for risk management reasons. The news triggered a sell-off in the FTT token that was trading at $3.00 as of publication time; a fall of 87.11% in seven days.
As reported by Cointelegraph, some of FTX's shareholders learned about the agreement via Twitter on Nov. 8. In his letter to the exchange investors, SBF apologized for being "hard to contact" in the past days, acknowledged he has no idea what exactly the agreement with Binance means, and lastly, close the letter saying he will be "quite swamped" in the coming days, and will write again "when I have time too."
The next steps remain unclear. Binance is reportedly performing due diligence, and may opt to walk away from the deal after reviewing the company's structure and books,
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