🥷Failing FTX got hacked, but there’s more…

Good Morning Switchers 🤗

👋Welcome to Switch Daily.

How are you all doing? Honestly, we’re Sam-Brain-Fried. Couldn't even catch a break from the minute-to-minute shocking revelations that flew by the weekend. Amidst all that, we forgot something significant—US inflation is going down, and the Rupee is strengthening.

The October inflation rate of the US came in at 7.7%, which, my friends, is way lower than September’s 8.2%. As the data came in, the Dollar fell, and INR made its highest green leap in four years. So, we got that going atleast!

BTW, if you like reading this newsletter, give us a shout out on Twitter and get your friends to subscribe. It will mean a great deal to us!

Here’s what we’ve got for you:

• Market pulse

• What’s going on with FTX?

• News to kick off Monday blues

• Meme of the day

Market pulse 📈

The market is in mourning 😔

As reports of abnormal transactions in FTX surfaced, fears of a potential hack caused widespread liquidation in the crypto market over the weekend. The 24-hour liquidation data on Coinglass.com indicates that as of 14 November 2022, there has been a 133% rise in crypto asset sales across exchanges. The total crypto market cap dropped further as an outcome. It is close to the $800 billion level.

All top crypto coins continue to trade in deep red. Improving global macro conditions have taken a backseat. The crypto market is likely to follow developments around the FTX exchange. Investors are advised to maintain caution as sell-off sentiment persists.

FTX in the past 72 hours 🕰️

We’re back on a new week, with the same old story but with thrilling new plot twists. Seriously, imagine FTX’s story combined with Indian soap opera skills. The show would be more popular than CBI.

While it may have been great for a TV show, the reality isn't so great for its one million users and the 130 companies it’s associated with. We’re not kidding. SBF has dipped his hands in a lot of places. Check it out!

Before we talk about the developments, let's recap the first two days:

• News is out that Alameda Research (FTX’s sister concern) has most of its assets in FTT(FTX’s native token).

• Binance got wind of this and wanted to sell off the tokens; markets tumbled.

• Binance announced plans to acquire FTX and then backed out. Here’s the full story if you want to catch up.

The past 72 hours in the crypto world

1. Sam was sorry, so he brought in someone to help.

Sam was all over Twitter apologizing for his ‘bigger-than-earth’ mistakes. He admitted to two big faults: Overlooking the numbers & not communicating enough. Looks like Sam’s trying to overcompensate for the latter, though! 🫣

He said he’d try his best to make good to his customers. So he made a deal with Tron to allow folks to transfer Tron based tokens such as TRX, BTT, JST, SUN, and HT to external wallets.

2. FTX and Co. filed for bankruptcy, and SBF stepped out.

FTX and all its 130 subsidiary companies, along with FTX US, filed for bankruptcy in the US. SBF also resigned as CEO and announced that the new CEO of FTX is “John J Ray III.”

No, he does not have royal lineage, but he is the lawyer brought in to clean SBF’s mess.

3. FTX got hacked for $600 million.

As if the fall of the FTX empire was not bad enough, someone managed to hack $600 million from the failing crypto platform. The hack happened on the same day that FTX filed for bankruptcy. The Word is that this could be a potential insider job. Consequence—all user accounts on the FTX and FTX US platforms showed a $0 balance.

Even worse, reports claimed that FTX had only $900 million in assets for $9 billion in liabilities before the hack. 😨

4. Apparently, SBF orchestrated LUNA and 3AC crash

No words 🤯

5. The FTX crash brings down many other crypto pillars.

• Blockfi froze their withdrawals

• Crypto.com froze their customer accounts

• Employees who opted to take their bonuses in cash lost their life savings.

• Half of Galois Capital’s funds are currently stuck on FTX

• Paxos has some money stuck with FTX, but it does not affect their business since they are backed by reserves.

• Genesis Trading suffered a $175m loss due to FTX.

• Huobi has $18 million deposited with FTX.

• Etc, etc.

6. The Bahamas police have sealed the FTX office buildings and have frozen their assets.

The U.S. Securities and Exchange Commission, the Justice Department, and the Bahamas Police force are investigating FTX and SBF for financial crimes. FYI- FTX is headquartered in the Bahamas.

The FTX crash has brought so much information to light. We have tried to cover the most critical aspects of what went down. But if you wish to follow the whole story, we recommend following @MarioNawfal on Twitter. Their team has done a tremendous job covering the crash live on Twitter over the weekend.

Tweet of the hour 🐦

What else is brewing? ☕

🥪BTC can buy you sandwiches in Berlin

Subway—a popular restaurant chain and the world’s largest franchise in terms of restaurant numbers— has started accepting Bitcoin payments in some of its eateries in Berlin.

🔻FTX fallout: Tether loses dollar peg briefly

Tether (USDT), the largest stablecoin by market cap, lost its dollar peg, albeit briefly. The stablecoin dropped as low as 93 cents on certain exchanges when it was mandated to maintain the $1 peg. However, it was a short-lived scare as Tether quickly returned to parity with the US dollar.

🐳Whales gobble up ETH as price dips

Ethereum whales—wallet addresses holding anywhere between 100 to 1 million ETH—currently hold 0.54% of ETH’s supply. In the last 24 hours, ETH whales have accumulated 657,390 ETH tokens.

Meme of the day!

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