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The cryptocurrency community has expressed skepticism about plans to revive FTX, with some questioning the apparent discovery of a $7.3 billion shortfall in funding.
A bankruptcy hearing on April 12 revealed that the discovery of missing funds could pave the way for the exchange to reopen.
FTT token rose 103% on this news. After about 12 hours, the token held most of its gains and gave up about $0.40 at a peak of $2.72.
FTX Scandal
In November 2022, rumors that FTX was insolvent were proven true, causing FTT to collapse and user accounts to be frozen.
In the weeks that followed, a scandal that went down in history as one of the worst to affect the cryptocurrency industry was revealed.
Inappropriate management of user funds was at the heart of the problem, especially in business-to-business transactions.It was revealed that the exchange was lending $10 billion Sold user funds to sister company Alameda Research. Alameda Research then squandered its funds through risky leveraged trading.
The scandal contains numerous subplots, including Sam Bankman-Fried’s mainstream media support, the exchange’s favorable regulatory relationships, and a mysterious hack allegedly carried out by an insider, to name a few. I was.
Skepticism in the Crypto Community
Members of the cryptocurrency community took to Twitter to share their thoughts on the possible reopening of FTX.
Some took a humorous approach. idea of bitcoinposted a Samuel L. Jackson meme on Coming to America and said, “What?!”
Similarly, Nebraska Gunner responded with a sarcastic meme showing people smiling and showing the thumbs up and OK sign. He asked why he uses FTX again.
“We’re sorry we stole all your funds, but don’t worry it’s safe this time!“
Others have put forward theories about resurrection. Nazeem Erkomos I asked how the $7.3 billion was collected. Elkommos speculated that the money came from vested interests trying to keep the exchange going.
“Somebody on Wall Street is throwing a ball #FTX Go out behind closed doors to continue their Ponzi scheme.“
Max Kaiser It is questionable whether the discovered funds exist. Bitcoin proponents have proposed that the whole thing was a ruse by the political class to pump tokens out, withdraw, and minimize losses.
“FACT: Many American politicians have ensnared the FTT tokens in the hope that by promoting this lie they will be able to part with them and recoup some of their losses. “
