Mark Cuban is not happy and makes it known.
The successful entrepreneur seems, like most business circles, to have been shocked by the implosion, in less than a week, of FTX, one of the big players in the crypto sphere.
The cryptocurrency exchange filed for Chapter 11 bankruptcy on November 11, after three turbulent days, which saw a company valued at $32 billion in February urgently calling on its rivals for help.
But FTX’s financial situation was too dire for a potential savior to try and rescue it. Binance, the biggest crypto exchange and big rival of FTX, tried but finally gave up.
“As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of http://FTX.com,” Binance said on November 9.
“In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help.”
FTX’s Controversial Practices
As a crypto exchange, FTX executed orders for their clients, taking their cash and buying crypto currencies on their behalf. FTX acted as a custodian, holding the clients’ crypto currencies.
FTX then used its clients’ crypto assets, through its sister company’s Alameda Research trading arm, to generate cash through borrowing or market making. The cash FTX borrowed was used to bail out other crypto institutions in the summer of 2022.
At the same time, FTX…
