Cryptocurrency exchanges scramble to contain FTX fallout

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Cryptocurrency exchanges scramble to contain FTX fallout
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Following the dramatic collapse of FTX and its Democratic super-donor founder Sam Bankman-Fried, other centralized cryptocurrency exchanges are scrambling to shore up their reputations and contain the fallout.

During a Reddit Q&A, Crypto.com CEO Kris Marszalek reassured users that the funds the top ten exchanges sent to FTX had (mostly) been recovered.

“In one year, $1 billion was transferred to FTX, and we got it all back,” Marszalek said. “We only had less than $10 million exposure when FTX closed. And FTX was a trading platform where – it’s one of the few trading platforms with decent liquidity for some parts, like the ones I mentioned earlier.

Marszalek also had to answer questions about $400 million in Ether that was mistakenly sent to another centralized crypto exchange, Gate.io. Crypto.com and Gate.io said the funds were sent in error and were returned.

US-based cryptocurrency exchange Kraken has also decided to insulate itself from the FTX fallout, freezing accounts associated with the exchange and Alameda Research, the trading company also owned by Bankman-Fried. .

“Kraken spoke to law enforcement about a handful of accounts held by the bankrupt FTX Group, Alameda Research and their executives. These accounts have been frozen to protect their creditors,” Kraken’s official Twitter account said. “Other Kraken customers are not affected. Kraken maintains full reserves.

The value of Solana, a blockchain platform that was heavily backed by Alameda Research and was the token most closely associated with FTX, has plummeted in recent days as news about the exchange and its founder has gone from bad to worse. .

The value of SOL, Solana’s cryptocurrency, crashed more than 50% in the past week, hitting a low of $12.07, a colossal drop from its peak of nearly $260 at its peak. of the crypto boom in November 2021.

Allum Bokhari is Breitbart News’ Senior Technology Correspondent. He is the author of #DELETED: Big Tech’s Battle to Erase the Trump Movement and Steal The Election.

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