FTX’s problems began when the price of its native FTT token fell and many users withdrew their coin. Following reports that FTX was experiencing a liquidity problem, competitor Binance said that it will sell off around $500 million worth of FTT, thereby erasing the token’s value. Binance then announced its intention to acquire FTX, but pulled out a day later, citing problems discovered during due diligence. Bankman-Fried said that he intends to ultimately write an account of what happened to FTX.
