– FTX and Alameda bankruptcy is one of the biggest catastrophic events in the history of cryptocurrencies.
– The main reason behind the bankruptcy is the misuse of user funds deposited to the platform.
– The cost of this collapse is approximately $8 Billion.
– Although the crisis linked to this collapse can be tracked with on-chain data, irregular transfer of money between companies constitutes a significant part of this crisis.
– The underlying reason for the collapse is that a significant part of collaterals in FTX and Alameda’s balance sheet consists of tokens such as FTT and SRM, which lack sufficient liquidity.
– The collapse of FTX and Alameda has caused collateral damage to many of their partners in both decentralized and centralized finance, leading to their bankruptcy or forcing them to suspend withdrawals.