FTX stuff

can someone explain what happen to them? bankrupt? what is alameda? ty

dont feel like explaining

TSM's sponsor 'FTX' basically went bankrupt after screwing up the crypto market for everyone (good for TSM because they can go back to using old 'TSM' name and get to keep the money) so everyone's kinda happy (unless you work for FTX)

They did the classic financial switcheroo. 1s step is entering/creating a new market that always goes up. 2nd step is to provide a platform that lets other people put money in this infinite unstoppable wealth fountain. 3rd step is the fun one, since shit always goes up you speed things up by taking some of the clients' funds to fund your business or accelerate your personal investment in said "alwaysgoesup" market.

Sadly on the 4th step you discover that the core investment actually can go down tooo.... after that its only a matter of time for the gains to be chipped slowly, or quickly if the FED decides to raise rates 5% suddenly after 10 years of keeping them waaay too low. Eventually the clients realize that part of their investments are missing where they shouldn't, that on top of the magic fountain going drier by all the controversy surrounding it.

FTX has a native cryptocurrency token called FTT, which traders use for operations like paying transaction fees. Last year, Mr. Zhao sold his stake in FTX back to Mr. Bankman-Fried, who paid for it partially with FTT tokens.

On Nov. 2, the crypto publication CoinDesk reported on a leaked document that appeared to show that Alameda Research, a hedge fund run by Mr. Bankman-Fried, held an unusually large amount of FTT tokens. FTX and Alameda are meant to be separate businesses, but the report claimed that they had close financial ties.

Binance announced on Nov. 6 that it would sell its FTT tokens “due to recent revelations.” In response, FTT’s price plummeted and traders rushed to pull out of FTX, fearful that it would be yet another fallen crypto company.

FTX scrambled to process requests for withdrawals, which amounted to an estimated $6 billion over three days. It seemed to enter a liquidity crunch, meaning it lacked the money to fulfill requests.

Credits to source

On the surface it just that FTX using customer money for investment, political donation, other spendings. When customers withdraw from FTX en masse, they don't have the liquidity for the withdrawals and risk going bankrupt. But looking further, It goes super deep involving SEC corruption, planned regulations, sex cult, and other political stuff that we can't discuss on vlr