VegaX Flash News — Binance and FTX Breakdown — November 2022
While the past ~48 hours are likely to have been stressful for those with digital asset holdings, this most recent purge is almost sure to help our industry mature and become more robust than it was previously.
Recent market events have not affected the safety of client funds nor does VegaX Holdings have exposure to tokens issued by centralized exchanges. We have always proactively minimized the risk to client funds and enhanced security via our technology utilizing hybrid and cold custody, in addition to our team’s expertise, to ensure client funds and operations continue to remain secure.
tl; dr
For those who have not been closely following this developing issue, Coindesk published an article on November 2nd which made an analysis of Alameda Research’s balance sheet (the proprietary crypto trading firm, founded by Sam Bankman-Fried) which noted potential stress based on the assets that they were holding.
Over the weekend, rumors of insolvency at one or both of the Bankman-Fried-founded firms picked up more and more steam. On November 6th, CZ, Co-Founder and CEO of Binance, posted a thread to twitter where he explained that as a part of their 2021 exit from FTX equity (Binance were early FTX investors), they received a sizable amount of FTT tokens. He went on to say that given recent concerns with the Alameda and FTX balance sheets, Binance would be liquidating any remaining FTT on their books.
Following a significant market rout and volatility for the cryptocurrency market at large and with Binance pulling out of a potential acquisition the future events and impact still remain to be seen.
While the industry and markets have certainly faced a blow from this situation, we at VegaX strongly believe in the bright long term future of the industry and are excited to continue the journey with all of our stakeholders.
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