FTX

By Hannah Miller Sam Bankman-Fried was supposed to be different than the run-of-the-mill crypto types. He was this wunderkind, a 30-year-old with a ...

Arthur Breitman, the co-founder of the Tezos blockchain, said in a statement that it will be interesting to see whether an acquisition of FTX by Binance will draw away support from major blockchains. Walsh said that this kind of structure wouldn’t have flown in a more regulated market and that the Binance deal could help put that issue to rest. While Bankman-Fried has said that FTX and Alameda are separate companies, the close relationship between the two has come under fire. with a $400 million revolving credit facility that came with the option to purchase the company outright. The list of losers in the collapse includes investors in Bankman-Fried’s exchange, valued at nearly $32 billion in a January financing. Yet while FTX was part of that, it seemed more than just an exchange: It was something of a one-stop shop for crypto boosterism, with its financial backing, market-making heft, Washington lobbying muscle and penchant for offering bailouts of its own that reached most corners of the industry. Notably, the Solana token took a drubbing Tuesday, dropping 23%. Alameda Research, a crypto trading firm that was also co-founded by Bankman-Fried, offered a $485 million loan to Voyager Digital that failed to save the crypto brokerage from bankruptcy. The extent of declines may depend on just how much contagion, if any, FTX’s sudden collapse will have in the market. “I think if this bear market has proven anything, it’s that the emperor has no clothes,” Marc Weinstein, partner at crypto venture firm Mechanism Capital Ventures, said. These investors are uncertain whether they will receive any money if the agreement with Binance goes through. Sam Bankman-Fried was supposed to be different than the run-of-the-mill crypto types.