local time, Sam Bankman-Fried (SBF), founder of cryptocurrency exchange FTX, announced on social media that more than 130 affiliated companies including exchange FTX.com, affiliated trading company Alameda Research (collectively referred to as FTX) Group) has voluntarily filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code in order to “assess and realize assets in an orderly manner for the benefit of global stakeholders.” Under U.S. law, companies that file for such bankruptcy can continue to operate while they develop a debt repayment plan. The exchange has suspended cryptocurrency withdrawals.
SBF also announced his resignation as CEO of FTX and was replaced by John J.RayIII, who also said it would appoint Stephen Neal as the company's new chairman of the board.
In bankruptcy documents obtained by US media, FTX said it has more than 100,000 creditors, and the company currently has assets between $10 billion and $50 billion and liabilities between $10 billion and $50 billion.
Crazy Financing
FTX's Rapid Expansion
FTX is a digital asset derivatives exchange established in May 2019. It is where users can trade Bitcoin, Ethereum and other cryptocurrencies, as well as related derivatives. FTX completed the seed round of financing in August 2019, raising $8 million, and the blockchain investment fund Proof of Capital, Consensus Lab, FBG, Galois Capita, etc. participated in the investment.
In July 2021, FTX completed a $900 million Series B financing, with a company valuation of $18 billion, the largest financing in the history of the crypto industry. More than 60 investors participated in this round of financing, including , Sequoia Capital, , SoftBank, Paul Tudor Jones Family Office, etc. FTX announced at the time that this round of financing was a strategic financing, hoping to achieve a strategic layout of cooperation with traditional market investors through financing.
On January 31, 2022, FTX announced the completion of a $400 million Series C financing at a valuation of $32 billion. Participants in the round include SoftBank, Paladin, Tiger Global Fund, and the Ontario Teachers' Pension Plan Board. In addition to FTX's own financing,
's FTX US, which provides services to American investors, also announced in January 2022 that it has completed a $400 million Series A financing at a valuation of $8 billion. This round of financing was funded by Paladin and SoftBank Vision Fund II. Period, Temasek and other institutions participated in the investment. After gaining a foothold in the United States, the
company began to expand globally. On March 7, 2022, FTX established its European subsidiary, FTX Europe, and obtained a regulatory license from the Cyprus Securities and Exchange Commission (CySEC) to provide European users with crypto derivatives trading services. On March 21, FTX established an Australian subsidiary, FTX Australia, which has obtained the Australian regulatory license to conduct business. On April 4, FTX completed the acquisition of Quoine, a Japanese crypto asset trading platform, and its parent company Liquid, and provides products and services to Japanese customers.
embattled on all sides collapsed
After the major countries in the world strengthened the supervision of cryptocurrency transactions, the cryptocurrency represented by Bitcoin began to adjust at the end of 2021. Take Bitcoin as an example, which reached an all-time high of $68,580 in November 2021 and then fell all the way down. The current price is less than $17,000. It has fallen more than 70% over the past year.
Similarly, the digital currency exchange, which provides a trading venue for cryptocurrencies, is also gradually struggling.
According to the currency circle media CoinDesk, Alameda will be in danger of bankruptcy, and most of the assets in the balance sheet belong to FTT tokens issued by FTX itself. This news instantly caused market panic, and FTT was sold off on a large scale, causing FTX to fall into a liquidity crisis.
On November 9, Binance, the world's largest cryptocurrency exchange, originally planned to acquire FTX. But only 1 day after due diligence, Binance founder Zhao PengHe said publicly: "The problem of FTX is beyond our ability to control and help." So far, the embattled FTX has entered the "Lehman moment" of complete collapse.
The sports and e-sports fields have become the hardest hit areas
Of course, considering that FTX has put a lot of advertisements and sponsorships in the sports and e-sports fields in the past few years, this currency storm is obviously not only Wall Street .
In the field of sports, the NBA team Miami Heat and Major League Baseball have a close relationship with FTX. In April 2021, the Miami Heat announced that they had entered into a long-term partnership with FTX.US, and the two sides signed a deal worth up to $135 million, one of the most expensive naming rights contracts ever. Starting with the 2021-22NBA season, the home of the Miami Heat will also be known as "FTX Arena".
FTX also reached a partnership with Major League Baseball (MLB) last year, and FTX will enjoy global marketing rights for special events. This is the first time in the history of MLB that it has reached a cooperation agreement with a cryptocurrency exchange. As part of the agreement, MLB referees will wear the FTX logo on their uniforms.
In addition, FTX and e-sports club Team SoloMid also reached a 10-year, $210 million exclusive naming rights cooperation last year, which is the largest deal in e-sports history.
FTX has also entered into a 7-year partnership with fist game , the developer of League of Legends , for sponsorship rights to the League of Legends Championship Series (LCS). Which stars are involved in the explosion of
FTX?
Many of the biggest names in sports and entertainment have either invested in FTX or served as brand ambassadors for the company over the past few years. Many of them have promoted FTX among their social media followers.
But now, they are more or less involved in this currency crisis: either their huge investment was wasted, or the advertisements they played in the past caused public backlash.
Four-time NBA champion , the American basketball superstar who currently plays for the Golden State Warriors Stephen Curry , just appeared in an FTX commercial earlier this year. In the ad, Curry says he doesn't need to be an expert to securely buy, trade, and sell cryptocurrencies on FTX's app. FTX said last year that the NBA superstar would take an equity stake in FTX and serve as a brand ambassador for FTX, with a portion of Curry’s earnings paid in cryptocurrency. FTX has said this as a gimmick, and this is Curry's first investment in the cryptocurrency space.
NFL superstar Tom Brady and his ex-wife Brazilian supermodel Gisele Bunchen, who just announced their divorce last month, also have a long-term partnership with FTX. Brady is a brand ambassador for FTX, and Gisele Bunchen has served as a consultant on environmental and social initiatives for the company. They also hold equity in FTX. Brady and Bundchen also participated in a $20 million ad campaign for the company last year. They shot a set of advertisements to introduce acquaintances to join the FTX platform. Trevor Lawrence, the No. 1 overall pick in the 2021 NFL draft, signed a multi-year sponsorship deal with FTX in April 2021. He also received part of the signing bonus in the form of cryptocurrency.
Otani Shohei is a star player who plays for the Los Angeles Angels of the Major League Baseball , and is also a rare player in modern professional baseball who is a double-bearer. FTX said last year that it had formed a long-term relationship with the star pitcher and hitter and that he would become one of FTX's brand ambassadors.
The four-time NBA champion who retired in 2011 and the contender for the No. 1 center in history - Shaquille O'Neal is also the brand ambassador of FTX. Naomi Osaka, the first Asian athlete in the history of
to reach the No. 1 singles in the women's tennis world, became the brand ambassador of FTX in April this year. Naomi Osaka also acquired equity in FTX.US and FTX, and will be paid in cryptocurrencyway to get paid.
Justin Sun shot to rescue the rumors
once made the FTX platform TRON soar dozens of times
November 11 news, after FTX, one of the world's largest cryptocurrency exchanges, unexpectedly "thundered", the old public chain platform TRON (TRON) The founder, Justin Sun, took the shot. According to the FTX announcement,
has reached an agreement with Justin Sun's TRON to allow users to withdraw TRON tokens from FTX. Stimulated by this news, the TRON-based tokens on the FTX platform were soaring for a time, and the increase in and reached dozens of times.
Upstream News Comprehensive Securities Times , Financial Associated Press, etc.
Editor: Yang Sihai
Editor in charge: Wu Jinming
Review: Feng Fei
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