The FTX insolvency case is being a major disaster for the cryptocurrency market. So far, the entire industry has been reeling from the case, with Bitcoin plummeting to a 2-year low. Amid doubts about how the brokerage will recover, there is great uncertainty about the sector. One of the most recent updates on the case showed a note of Sam Bankman-FriedCEO and founder of FTX, to some employees at the exchange where he talks about the turnaround plans and reveals that Justin Sun is “in talks with FTX”, which has made many speculate on the possibility of TRON manipulation.
FTX intends to raise money for brokerage recovery
The message was released by a Twitter user named Cobie, according to him, the letter was leaked by one of the company’s employees. In the message, SBF, as the CEO of FTX is known, detailed the plan to address the crisis that has gripped the exchange and spread like wildfire.
A msg from SBF on FTX slack that got leaked to me by some telegram anon, have verified its real w another pic.twitter.com/XMjIM9nSkx
— Cobie (@cobie) November 10, 2022
In the message, SBF says that FTX will start a fundraising process, with the aim of raising money for its recovery from “different entities” linked to FTX.
“The purpose of this fundraiser will be to do the right thing, first for the customers; second by current and potential new investors; third all of you (employees)…”, reads the SBF statement
Additionally, Bankman-Fried emphasized that the fundraiser could end up being a merger of FTX Intl and FTX US. The idea then is to raise funding to try to turn the brokerage around and, perhaps, with great luck, “if all goes well”, fix things with investors and clients. The curious thing is that SBF mentioned some names that drew attention, more specifically Justin Sun, the founder of Tron. Which made many people question the motives behind Sun and even SBF. As anticipated by livecoinsBinance backed out of buying FTX, something SBF criticized in its document.
“I shouldn’t throw stones at a glass house, so I’ll hold back a little here, except to say: they probably never planned to go ahead with the business, but so be it; we will do our work here independently.”, said sbf about binance.
Mistrust of Market Manipulation by Justin Sun
Sam also claims that FTX is in “talk with Justin Sun” to resolve the situation. And, coincidentally, this Thursday (10), Justin Sun posted on his Twitter that, amid the bankruptcy of FTX, the cryptocurrency TRON is being traded normally, even allowing withdrawals.
#TRX trading on @FTX_Official you have summarized Working on withdrawal function. Stay tuned. — HE Justin Sun🌞🇬🇩🇩🇲🔥 (@justinsuntron) November 10, 2022
As you can imagine, the situation caught the attention of many others, who noted that the price difference of Tron on FTX is stark, with TRX selling for as much as $1 on the bankrupt exchange.
“TRX on FTX is trading for $1. On Binance, it’s $0.06. Users are buying TRX because it’s the only way out of FTX. Master scammer Justin Sun convinced Sam to join TRX’s little games to save FTX in their moment of desperation.”
TRX on FTX is trading for $1. On Binance it’s $0.06. Users are buying TRX because it’s the only way to exit FTX. Apex scammer Justin Sun has convinced Sam to engage in TRX games to save FTX in his moment of desperation. https://t.co/xSXkxckNg4 pic.twitter.com/Q2xOHStyNf
— Autism Capital 🧩 (@AutismCapital) November 10, 2022
Some believe that Sun is using the FTX situation precisely to buy debt from the brokerage at a large discount. After all, customers buy TRX for a much higher price using their bitcoins to be able to withdraw a portion of what they actually own. In theory, Tron is literally buying the broker’s debt at a much lower price. So, in theory, Sam would benefit by closing the gap between debt and cash, easing FTX’s insolvency, as well as relieving the broker in the future in the event of a lawsuit.
“Does this mean that if someone leaves FTX through TRX they lose their right to be in the lawsuit? Sam can tell you that they settled the debt and got their money.”
Market continues to fall and could get worse
Sam’s messages show that FTX and the brokerage’s leadership really are in a tough spot and running out of time to achieve any kind of recovery. Meanwhile, the market continues to hemorrhage. Bitcoin continues to visit lower and lower values and is now fighting for values in the $17,000 range. If FTX’s loss continues to increase, it is quite possible that the price of bitcoin will continue to fall in the medium term.
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