FTX fired top officials: Co-founder Gary Wang, including Nishad of Indian origin, was ousted.
Bankrupt cryptocurrency exchange FTX has fired some top officials. These include co-founder Gary Wang, Indian-origin engineering director Nishad Singh and Caroline Ellison. Nishad and Caroline worked at Alameda Research, the trading arm of FTX. The Wall Street Journal has published a report regarding this.
In a video call with Alameda employees on November 9, Ellison said she knew, along with the company’s CEO and co-founder Sam Bankman-Fried, Wang and Singh, that Alameda was using FTX to trade customer funds. Transferred to research. Bankman-Fried resigned on 11 November. John J. Ray has been made the CEO in his place.
Bankman-Fried’s net worth is zero
Sam Bankman-Fried’s $16 billion wealth was reduced to zero in just a few days after the FTX mess came to light. At one point Sam Bankman’s net worth reached $26 billion. The reason for the decline in net worth is the bankruptcy of FTX Trading Limited following a liquidity crunch.
What is the whole matter?
FTX was the second largest affiliated crypto trading company in the world. FTX Trading Limited, which came under liquidity crunch (financial crisis) due to financial disturbances, has gone bankrupt. According to a report by news agency Reuters, Sam Bankman-Fried secretly transferred customer funds worth $10 billion from FTX to Alameda. Almeida used this fund for trading.
Crypto publication CoinDesk published a report on a leaked balance sheet when the firm suffered huge losses in trading. Turmoil began at FTX after this report surfaced. FTX received an estimated $6 billion in withdrawal requests in three days. FTX suddenly got into a liquidity crunch with so many withdrawal requests that means it was not in a position to process the withdrawal requests. After this, he put a request to be bankrupt.
