![]() Bankman-Fried, 30, said in a statement that Mr. (Tether ultimately did not end up losing its $1 peg.) Industry insiders have long feared that if Tether’s price fell, it would cause a domino effect that might bring the industry to its knees. Tether is a linchpin of crypto trading worldwide, commonly used by digital asset enthusiasts to conduct transactions. According to messages seen by The Times and people familiar with the matter, the group chat included several other prominent crypto executives, including Jesse Powell, a founder of the crypto exchange Kraken, and Paolo Ardoino, the chief technology officer of Tether, the company that issues the stablecoin of the same name. Bankman-Fried of using his hedge fund to drive down the price of Tether, a so-called stablecoin whose price is designed to remain at $1. During a crypto crash in May, two currencies had plunged in value, setting off an industrywide meltdown and forcing several prominent firms into bankruptcy. 10 texts, he appeared certain that FTX would not survive, and concerned that it could bring the rest of the industry down with it. Zhao had agreed to buy FTX and save the exchange, before backing out of the deal. The exchanges became increasingly tense as Mr. The texts also show that industry leaders were acutely aware that the actions of a single firm or fluctuations in the value of one virtual currency could destabilize the whole industry. And their frantic communications offer a rare glimpse into the unusual way business is conducted behind the scenes in the industry, with at least three top officials from rival companies exchanging messages in a group chat on the encrypted messaging app Signal. 10, which were obtained by The New York Times, show that key crypto leaders feared that the situation could get even worse. ![]() The series of about a dozen group texts between Mr. ![]() The implosion unleashed a crypto crisis, as firms with ties to FTX teetered on the brink of bankruptcy, calling the future of the entire industry into question. “The more damage you do now, the more jail time.”įTX and its sister hedge fund, Alameda Research, had just collapsed after a run on deposits exposed an $8 billion hole in the exchange’s accounts. Bankman-Fried and other crypto executives on Nov. Bankman-Fried was orchestrating crypto trades that could send the industry into a meltdown. The day before the embattled cryptocurrency exchange FTX filed for bankruptcy, Changpeng Zhao, the chief executive of the rival exchange Binance, sent an alarmed text to Sam Bankman-Fried, FTX’s founder. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |