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so the story behind FTX is one of the craziest involved hereamp;#39;s what you need to know this all starts back with Alameda research who is also partly owned by Sam bankman freed ing to a source for the Wall Street Journal Alameda needed Capital earlier this year so FTX lent out a large sum of customer funds to them now the problem is that ftxamp;#39;s term of service stated they would never do anything like this and to add to that Alameda held a large amount of ftt which is a native of FTX and made the two firms way too interconnected so all of this began when ftxamp;#39;s balance sheet was published in a coindesk article and CZ of binance decided to sell a large amount of the ftt s after offering them a deal CZ and binance realized just how bad their finances really were so they backed out of their deal this left scam bankrupt fraud with no other choice but to file for bankruptcy
