The FTX drama continues as the deal with its competitor Binance is broken. Employees on the platform are fleeing amid growing concerns about a massive $6 billion hole on the company’s balance sheet, according to multiple reports.
a report good Semaphore indicates that FTX’s legal and compliance staff have collectively left as the company announced its deal with Binance. The report cites people familiar with the matter speculating on the company’s odds to complete any settlement without legal staff.
FTX team kept silent, employees put their trust in CEO
On social media, users began reporting that websites related to FTX and its trading arm Alameda were close. Furthermore, top officials went silent, in what appears to be the collapse of another major crypto institution.
The bankruptcy of FTX shocked the institutions and the big players. The company has seen several top representatives quit their positions over the past months as US regulators launched an investigation against the trading site and its founder, Sam Bankman-Fried.
Nevertheless, a large proportion of crypto investors and employees remain in distrust. The exchange halted fresh withdrawal requests on Tuesday. However, it continues to see deposits.
According to Woo BlockchainFTX employees tokens stuck on the platform:
Several FTX employees told us that their coins could not be withdrawn to FTX, and they had no idea of the relationship between Alameda and FTX, with some employees even these days continuing to buy FTTs because of the company’s belief. He felt the SBF needed to be explained.
FTX fails to warn users
At the time of writing, FTX’s website does not issue any warnings about the current situation. This situation could put new users or depositing users at risk.
What’s more, there are no warnings or news anywhere on the site about no withdrawals or possible acquisitions.
It was called immediately and it is still running.
This is a fucking criminal.
If you don’t follow the news, you may think coins are bad.
— adam cochran (adamscochran.eth) (@adamscochran) November 9, 2022
A few days before the play, the official Twitter handle of FTX posted videos about several offices under construction around the world. The crypto company will be opening offices in Tokyo, Miami, the Bahamas and other locations.
— Claire Watanabe (@claire_FTX) 6 November 2022
In contrast, Banksman-Fried constantly tweeted about his weekly FTT purchases, the exchange’s native token. In the end, the post looks like a marketing stunt to get retail investors to buy the token and prevent the subsequent fall.
FTT has been one of the most affected tokens in the crypto market. Binance CEO compared the coin to Terra’s failed cryptocurrency LUNA. At the time of writing, the price of FTT is trading at $3.2 with huge losses across the board.