FTX Exchange was “fined” was false news, quoted FTX False News. A co-founder of FTX told a court that a tweet sent by Sam Bankman saying that the FTX exchange was “fine” was false.
FTX Exchange has left many investors scratching their heads. In just two years, the crypto derivatives exchange saw rapid growth and interest, culminating in a spot on the top 10 list of crypto exchanges by trading volume. But, almost as quickly as it rose to prominence, the exchange has faced numerous issues that have temporarily halted its growth.
FTX Exchange starts in the summer of 2018, when its founder and CEO, Sam Bankman-Fried, had the idea to set up a crypto derivatives exchange. He saw an opportunity to create a platform that could provide traders with more sophisticated products, such as futures and options. At that time, the crypto derivatives market was relatively untapped, and Bankman-Fried set out to make FTX Exchange the go-to place for traders.
The exchange quickly gained traction and investors flocked to the platform, eager to take advantage of its sophisticated suite of products. By July 2019, the exchange had secured its spot as one of the top 10 exchanges in the world. It was also on track for a $20 million Series A fundraising round, and seemed to be well on its way to success.
But, it was not to be. Over the next several months, the exchange faced a number of issues that hindered its growth. In November 2019, the platform was hit with a lawsuit from a disgruntled customer, and in December, it was the subject of a class-action lawsuit. This led to numerous problems for the exchange, including a freeze on its Series A fundraise and a decline in trading volume.
Mr Wang, the former cheif technology officer at FTX, said that Mr Bankman had repeatedly made public claims about the firm's financial position that were not based on reality. FTX collapsed into bankruptcy in November last year as a flood of customers tried to withdraw their money. After that, Mr Bankman was charged with fraud, accused of stealing money from FTX customers and lying to investors and lenders. He has denied the charges against him.