Evaluation of FTX Firm's Bankruptcy by Helprin Management Tokyo, Japan

1. Helprin Management Japan MARCH 7 Helprin Management Review Helprin Management Review 1

2. Evaluation of FTX Firm's Bankruptcy by Helprin Evaluation of FTX Firm's Bankruptcy by Helprin Management Tokyo, Japan Management Tokyo, Japan The Futures Exchange (FTX) gained notoriety when its CEO and founder, Samuel Bankman-Fried (SBF), resigned and the business filed for Chapter 11 bankruptcy. In a matter of seconds, the former CEO lost around 94% of his total wealth. HELPLIN MANAGEMENT Tokyo Japan examines the FTX event in light of its implications for financial technology's position as one of the top cryptocurrency exchanges going forward. Investors may learn a lot from what occurred to SBF and FTX, particularly with regard to investments and money management. Bankman Bankman- -Fried, Sam Fried, Sam California-born Sam Bankman-Fried left the Massachusetts Institute of Technology with a physics degree and a minor in mathematics (MIT). After employment at the trade company Jane Street and in the nonprofit sector, SBF started Alameda Research in 2017, according to Helprin Management Tokyo Japan. SBF and his team launched FTX in 2019, a cryptocurrency exchange platform with cutting-edge features and affordable trading costs. According to Bloomberg, the cumulative net profit of both 2

3. companies in 2020 was $1.350 billion. At his height, SBF had a net worth of $26 billion and was a significant political donor by the age of 30. He was regarded as the richest person in crypto before the sad occurrence destroyed his net fortune. The Bloomberg Billionaires Index stated that by November 11, 2022, he was materially poor. Why did FTX disappear? Why did FTX disappear? SBF gained attention for his unconventional actions, which included securing the naming rights to an arena and hiring celebrities to promote FTX. The crypto industry has him beat. How did it go? FTT and Alameda FTT and Alameda The stability of SBF's empire was questioned at the beginning of November by CoinDesk, a hugely prominent crypto newspaper. Despite the fact that Alameda Research and FTX are independent organisations, the study found that the majority of Alameda's assets were in FTT, a currency that FTX had created. While technically there is nothing illegal with doing such, the fact raised concerns about the liquidity of the FTX. 3

4. A few days later, Binance CEO Changpeng Zhao (CZ) liquidated around $500,000,000 worth of FTT and drove additional users to leave. After three days of the consumers' panic selling, FTX received $6 billion in withdrawal requests. FTX and Binance FTX and Binance The platform failed to meet the unexpected demand, which reduced the value of FTT by 32%. Only until it was unexpectedly revealed on November 8 that Binance, the largest cryptocurrency exchange in the world by daily trading volume, would save FTX by purchasing it, did the value start to climb. Investors had high hopes for the deal. Nevertheless, following due diligence revelations of improper management of user cash and potential government investigations, Binance said on November 9 that it was not interested in FTX. The news further lowered FTT, which caused SBF's net value to disappear by 94%. SBF began contacting other competitors in the same sector for assistance, but no one was willing to pay for the loss. SBF resigned 4

5. as FTX's CEO the same day the company filed for Chapter 11 bankruptcy. Problems with FTX Problems with FTX SBF apologised for his errors of judgement on Twitter and attributed the collapse of FTX on a mix of inaccurate debt projections and large client withdrawals. Unnamed sources told Reuters that SBF moved money to Alameda from FTX earlier in 2022 after the latter suffered a string of losses, although the story did not name the sources. According to reports, he kept it a secret from others, and FTX declined to comment. Impact on the cryptocurrency industry Impact on the cryptocurrency industry Sequoia Capital, SoftBank Vision Fund, BlackRock, Tiger Global, and other well-known investors supported FTX after doing their due diligence. In addition, according to CoinDesk, SBF's close associates oversaw the business activities in the Bahamas alongside him. Their unidentified source said that some employees invested their whole life savings in FTX because they believed everything would be well. 5

6. With a $2 trillion blow in May, the cryptocurrency market has had a difficult year. Now, when the news of FTX broke, the market value is down 12%. Even while some think FTX is only one exchange and has no bearing on the rest of the business, cryptocurrency investors worry that a crash is about to happen. When SBF made the bid to buy Twitter, Elon Musk said on Twitter that he didn't think SBF had $3 billion available. Bottomline Bottomline Financial technology still has a ways to go, therefore it need the full backing of financiers and other decision-makers. Investments in cryptocurrencies and blockchain technology are now riskier because of recent market fluctuations and the influx of new competitors. The failure of FTX raises concerns about the future viability of the cryptocurrency market among certain investors. Helprin Management Review financial managers will make sure that each customer has an appropriate variety since the organisation believes in having a sufficiently diversified investment portfolio. If you manage to get your funds back from FTX, you might utilise them to invest with qualified financial advisors for greater growth and profitability. 6

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