The current concerns associated with the volatility of FTX Token (FTT) seeped into FTX Chief executive officer Mike Bankman-Fried’s other business operation, Alameda Research, because the BitDAO community requested details about Alameda’s BitDao (BIT) holding commitment.
On November. 2, 2021, BitDAO swapped 100 million BIT tokens with Alameda in return for 3,362,315 FTT tokens having a public dedication to hold each other’s tokens for 3 years, so until November. 2, 2024. Because of the rising uncertainties and speculations, the BitDAO community was quick to respond to the sudden fall of BIT prices on November. 8, 2022, suspecting Alameda of dumping the part tokens and breaching the 3-year mutual no-purchase public commitment.
To narrow lower the reason why for BIT’s cost drop, the BitDAO community requested an allowance for monitoring and verifying Alameda’s dedication to holding BIT tokens. BitDAO provided evidence of honoring its side from the commitment by discussing a previous address that shows BitDAO Treasury holding all 3,362,315 FTT tokens.
In exchange, the city gave Alameda a deadline of 24 hrs to demonstrate its commitment, requesting that:
“The preferred technique is for Alameda to transfer the 100 million $BIT tokens for an on-chain (non-exchange) address for that BitDAO community to ensure, and hold before the finish from the agreement.”
Ben Zhou, the co-founding father of crypto exchange Bybit, summarized the problem by proclaiming that while there is nothing confirmed, the BitDAO community really wants to confirm evidence of funds from Alameda.
Standing facing the accusation, Caroline Ellison, the Chief executive officer at Alameda Research, confirmed no wrongdoing in the company’s finish and guaranteed to talk about the evidence of funds, telling Zhou that:
“Busy right now however that wasn’t us, can get you evidence of funds when things calm lower.”
BitDAO’s proposal to request Alameda’s funds proof was supported by vague warning:
“If this request isn’t satisfied, and when sufficient alternative proof or fact is not given, it will likely be to the BitDAO community to determine (election, or other emergency action) how to approach the $FTT within the BitDAO Treasury.”
Alex Svanevik, the Chief executive officer of blockchain analytics platform Nansen, investigated the on-chain data to locate that Mirana Ventures — Bybit’s investment capital arm — withdrew 100 million BIT from FTX. However, he advised the crypto community to not be seduced by speculations, as withdrawing funds doesn’t mean Alameda is selling.
From November. 6, numerous FTX users faced problems while withdrawing their in the exchanges, for example delays and failures.
FTX addressed the concerns elevated by investors by highlighting the graceful operation from the matching engine. However, the exchange decided on delays with Bitcoin (BTC) withdrawals because of limited node throughput.
Additionally, users facing delays in stablecoin withdrawals were advised that withdrawal speeds would return to normal after banks started again operations throughout the weekdays.