In this article, you will learn why did the FTX website down. Cryptocurrency exchange FTX and its founder and former CEO, Sam Bankman-Fried, are intricately entwined. The swift and damaging collapse of FTX in late 2022 will have repercussions on the international crypto community for years to come.
Why Did the FTX Website Down?
The FTX website was unavailable following news Binance pulled out of the deal indicating the end is near for the beleaguered crypto exchange
The FTX(.)com domain went offline around 10 pm GMT for around 20 minutes before coming back online with a prominent red notice to users.
The statement reads, “FTX is currently unable to process withdrawals. We strongly advise against depositing.”
The website was shut down after the announcement that Binance had pulled out of the deal to acquire FTX. In addition, other Sam Bankman-Fried-owned companies, such as FTX Ventures and Alameda Research, had their website shut down earlier in the day.
The insolvent exchange has an $8 billion hole in its balance sheet, three times that of Celsius, which filed for bankruptcy earlier this year.
Users flocked to Twitter as the website went down, with users all over the globe reporting that they could not access the website.
It is currently unknown whether the outage was due to any technical issues or the result of an internal decision after the announcement that Binance has pulled out of the deal to acquire FTX.
What Happened to FTX?
FTX’s collapse took place over a 10-day period in November 2022. The catalyst was a Nov. 2 scoop by crypto news site CoinDesk that revealed that Alameda Research, the quantitative trading firm also run by Bankman-Fried, held a position valued at $5 billion in FTT, the native token of FTX.
The report disclosed that Alameda’s investment foundation was also in FTT, the token that its sister company had invented, not a fiat currency or other cryptocurrency.
That prompted concern across the cryptocurrency industry regarding Bankman-Fried’s companies’ undisclosed leverage and solvency.
Bankman-Fried Steps Down as CEO; FTX Files for Bankruptcy
Bankman-Fried stepped down on Nov. 11 as CEO of FTX, replaced by court-appointed FTX CEO John Ray, who led energy trading firm Enron through bankruptcy proceedings years before.
FTX filed for Chapter 11 bankruptcy protection the same day, revealing that roughly 130 other affiliated companies were also part of the proceedings. The bankruptcy filings indicated that FTX had assets and liabilities each in the range of $10 billion to $50 billion.
Bottom Line
The fortunes of FTX and its founder and former CEO, Bankman-Fried, are linked. In November 2022. cryptocurrency exchange FTX collapsed over a period of 10 days. This article is about the collapse of FTX and why did the FTX website down.
