FTX Latest: Police Interview Sam Bankman-Fried; Mystery Outflows
A day after Sam Bankman-Fried's digital-asset empire filed for Chapter 11 protection, the former crypto mogul was interviewed by Bahamian police and regulators, according to a person familiar with the matter.
Analysts say about $662 million in tokens mysteriously flowed out of both FTX's international and US exchanges. FTX had begun moving some of its assets to offline wallets, and later expedited those moves “to mitigate damage upon observing unauthorized transactions,” according to the US platform's general counsel Ryne Miller.
According to investment materials seen by the Financial Times, FTX Trading International held just $900 million in liquid assets on Thursday against $9 billion of liabilities.
Former Treasury Secretary Lawrence Summers compared the meltdown to the demise of energy company Enron Corp. The Securities and Exchange Commission and the Commodity Futures Trading Commission are investigating whether FTX mishandled customer funds, according to people familiar with the matter.
(All time references are New York)
Binance Is Stopping Deposits of FTX's Token FTT (3:30 a.m.)
Binance halted deposits of FTT, FTX's token, “to prevent potential of questionable additional supplies affecting the market,” Binance CEO Changpeng “CZ” Zhao said on Twitter. Zhao said that he would encourage other exchanges to do the same thing. Justin Sun said Huobi Global would echo Zhao's advice.
Zhao added that FTT contract deployers moved all remaining FTT supplies worth $400 million, “which should be unlocked in batches.” Binance followed up to say it had noticed a “suspicious movement” of a large amount of FTT by the token's contract deployers.
FTT fell as much as 21% on Sunday to $1.65, though had recovered to around $2 as of 8:26 a.m.
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