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Can FTX survive? Sam Bankman-Fried is still trying to raise rescue funds to repay 1 million customers

By Alara Jordan

Edited by Charlie Mellor

13:03, 16 November 2022

FTX logo
Newly-surfaced Slack messages from the former CEO state he is actively speaking with investors to raise rescue funds – Photo: Shutterstock

The fallout of what was once the world’s third largest crypto exchange has continued to unravel as former CEO Sam Bankman-Fried vowed to make things right for FTX. 

In a series of tweets published on 15 November, Bankman-Fried set out his intention to raise rescue funds for the exchange with a goal to “make customers whole” again. 

In addition, Slack messages from the former CEO have surfaced outlining that he is speaking with investors to raise rescue funds after rival exchange Binance backed out of the deal to acquire FTX.

“My goal – my one goal – is to do right by customers. I’m contributing what I can to doing so,” said Bankman-Fried on Twitter, before he added that he’s also meeting in-person with regulators.

The exchange currently has more than one million creditors following its downfall last week after a news report raised questions about the balance sheet of Alameda Research – and Binance CEO Changpeng ‘CZ’ Zhao confirmed that his firm would offload its entire holding of the ftx token (FTT) – the native crypto used by the FTX ecosystem. 

FTT to USD

FTX chaos continues

Bankman-Fried is reportedly still in the Bahamas after FTX and its more than 110 subsidiaries filed for bankruptcy protection on Friday 11 November. He resigned as CEO of the company with ex-Enron bankruptcy lawyer John Ray III stepping in as his successor.

ETH/USD

3,537.56 Price
+13.960% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

BCH/USD

505.05 Price
+4.180% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

DOGE/USD

0.16 Price
+6.150% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

BTC/USD

69,687.95 Price
+5.050% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

Hours after FTX’s bankruptcy was confirmed, the exchange suffered a major breach that saw close to $600m wiped from its crypto wallets and user accounts. 

FTX confirmed it had been the subject of a breach via its Telegram channel, instructing users to delete all FTX apps and not to install any new upgrades. 

“FTX has been hacked. FTX apps are malware. Delete them,” said an account administrator. Several wallet holders reported that they were seeing $0 in their accounts shortly after. 

There have been rumours swirling of potential prominent figures within the crypto industry that could extend a helping hand to Bankman-Fried to help raise funds. 

Paolo Ardoino, chief technology officer of Tether (USDT), was one of the rumoured individuals, before he tweeted to confirm that Tether had “no plans” to invest in or lend assets to FTX.

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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