FTX Reportedly Have Withdrawal Issues. Is This The End

Tuesday's here, and so is BitDegree Insider. We bring you the hot stuff.

Today we're talking about :

• FTX Drama Continues
• CZ vs SBF (The Backstory)
• Huobi Inspecting Gala Hack Profiteers
• Selected Meme of The Day
• Bite-Sized News

FTX DRAMA CONTINUES

Yesterday we talked about how two giants, Binance and FTX, locked their antlers in an aggressive conflict.

Well, it's been reported that FTX temporarily halted withdrawals. According to on-chain data.So that's... Big news. Maybe it's temporary. But it's enough to feel how the panic is spreading in the room.

Here's a quick recap on what happened until today:

Binance CEO Changpeng Zhao (CZ) woke up and decided that the world wants some drama.

He announced that he would liquidate Binance's FTX Token (FTT) holdings in coming months.

Why? One of the reasons is that Sam Bankman-Fried's trading firm Alameda Research potentially having solvency issues.

Apparently, as of June 30, Alameda's debt accounted for 54% of its assets. And… a huge amount of Alameda's assets are FTT (FTX's token).

So… If FTT goes down for one reason or another… Alameda is in trouble. And the damage would be massive. Luna level 2.

But it's not the case. Yet.

Okay, so the latest update comes from BitDAO. One of the largest decentralized autonomous organizations (DAO).

It's a collective of builders, products, and mutually beneficial ecosystems governed by $BIT token holders.

And $BIT is a token issued by Bybit exchange. This means that what BitDAO decides to do, it kinda acts in the name of Bybit.

And now BitDAO has announced an ultimatum for Alameda.

The community has promised to vote whether they should sell their FTT holdings or not. The vote would take place, unless Alameda proves that they've still got the BIT holdings as well.

Everything looked so tense. FUD was all over the place. But then suddenly...

Alameda actually transferred the required proof. For a moment, peace returned.

But the pot remains boiling.

The Solana token, for example, also did not remain unaffected in this context.

This is the second strongest position in Alameda's portfolio. Over the past 24 hours, SOL has fallen by 10%.

OKX (another crypto exchange) founder Star Xu urged the head of CZ to end the war.

He wisely noted that due to the possible bankruptcy of FTX, the entire market will suffer, including Binance:

"Decentralization is the basic of the crypto industry. If Binance get 100% market share and BNB market cap exceed BTC , the industry will get failed and CZ will lose everything. Help FTX recover from the current rumor is the best choice to CZ".

So here's a question:

CZ vs SBF (THE BACKSTORY)

Apparently, the current whale wars drama is not something that came out of the blue.

It's been brewing since 2019. So claims Twitter user @alex_valaitis.

It's a fascinating read about what truly happened behind the scenes of the clash of Sam Bankman-Fried (SBF) of FTX, and Changpeng Zhao (CZ) of Binance.

But we're here to save your time. Here's the key takeaways from this thread:

• Binance was founded in 2017. FTX was founded in 2019.
• Despite being new players in the game, Binance and FTX immediately rose to the top.
• CZ understood SBF's potential. He even invested in FTX in 2019.
• FTX grew so much it became a threat to Binance (despite FTX's volume being 10x smaller).
• SBF understands that he can gain advantage by winning over regulators' favors. He was #2 donor to Biden campaign.
• SBF aims to position FTX as the 'Western' face of crypto.
• While CZ, who was born in China, and with rumours circulating about Chinese government being involved with Binance, it's convenient to position Binance as the 'Chinese' face of crypto.
• CZ vs SBF is, essentially, positioned as a war between the two superpowers. And CZ may not like that.

HUOBI INSPECTING GALA HACK PROFITEERS

Just recently we wrote about a hacker who attacked Gala Games by minting and selling $GALA tokens.

But... It created an opportunity for arbitrage traders to make a fortune as well. Some of the made more than the hacker themselves.

But it looks like that was not the end of the story.

The crypto exchange Huobi announced that they're about to look more closely into the cases of those who profited from the $GALA coin.

The $GALA token incident resulted in a lot of damage to the Huobi exchange. Huobi is angry that pNetwork (Defi structure provider that supposedly didn't stop the hacker from intruding) agreed with Binance to close the withdrawals after the hack.

But they did not agree anything with Huobi - this factor opened the window for arbitrage and led the exchange to huge losses.

So now they're offering cash rewards to those who return funds withdrawn from the platform using this loophole.

Moreover, the exchange will track everyone who exploited the artificially created bug and get the police involved.

Selected Meme of The Day

Bite-Sized News

• US Judge Finds Blockchain-Based Firm LBRY Guilty of Violating US Laws. Another day, another violation in a world with no clear regulation.
• Gemini Launches in Croatia, Cyprus, Hungary, Slovenia, and Romania. New maps unlocked.
• US Attorney's Office Confiscated Around 50K Bitcoins Associated with Silk Road. The shadows of the dark past refuse to go away.
• NTT Docomo Partners with Accenture to Use Web3 to Address Social Issues. Let's hope that 'addressing' equals 'solving'.