The story and what it contains and the reason for the current market decline
In short, the drama unfolded in recent days between CZ, the founder of Binance @cz_binance, and Sam, the founder of FTX @SBF_FTX.
Sam recently appeared prominently in the news as a billionaire at a young age before turning thirty and as the second-largest donor to the Democratic Party.
It is important to note that Sam was a trader and owned @AlamedaResearch, a company for trading in cryptocurrencies.
Sam has often asserted that the trading company has no relation to the exchange company.. rather, he appeared to be the most compliant with the laws.. meanwhile, CZ and Binance are still pursued by money laundering charges.
Sam issued the $FTT token to settle operations within the exchange and provide traders with some advantages. Binance owns an equivalent of half a billion 62815072868 of this token.
At the beginning of the week, a rumor spread that a third of Sam's trading company's assets, amounting to 5 billion 62815072868, are from the same token, which he borrowed from the exchange and allowed its use for borrowing!!
The news sparked panic, first due to the overlap between Sam's exchange and trading companies contrary to what is announced, and second due to the risk of both companies failing to meet traders' funds due to their use of their own token as collateral.
