Tether Has No Plans of Helping FTX Recover, FTT to Plunge Deeper

Last week, it was confirmed via a leaked balance sheet that FTX backed Alameda Research with FTT belonging to customers on the exchange.

After the revelation, it has been confirmed that there is a great void in the balance sheet of the FTX exchange. As the exchange no longer has the actual FTTs of the users, it is eager to find investors.

FTX is aiming to find investors who would contribute enough that FTX is able to deal with the financial crisis. FTX even wants the same investors to help it get back on its feet.

Tether has Opted Out

When the news first came about the FTX exchange, Binance announced that it would provide its support to the FTX exchange. Both sides confirmed that Binance was going to acquire FTX exchange in the process.

However, Binance later backed out of the deal stating that the damage the exchange has suffered is beyond repair. Binance’s announcement caused a major dent in the status of FTX and the value of the FTT.

Unfortunately, as the situation is constantly getting worse for FTX, more and more potential supporters have started to back out.

Tether, the issuer of the largest stablecoin by valuation ‘USDT’ had also shared its intentions to support the FTX exchange.

As more and more things are unraveling about the exchange and its founder, Sam Bankman-Fried, Tether has decided to opt out of supporting the troubled exchange.

Paolo Ardoino Dropped the News

It was on November 10, when Paolo Ardoino, the chief technology officer (CTO) at Tether, confirmed the rumors about Tether not supporting FTX.

He confirmed that they have closely monitored and analyzed all the developments that have taken place in recent days about the FTX exchange.

After carefully assessing the entire situation, they decided that they would not participate in any kind of deal with FTX.

He publicly announced that Tether would neither lend money to FTX nor it would make any investments in the exchange. Ardoino stated that they have made the same decision about Alameda, FTX’s trading arm.

Sam Bankman-Fried Approached Key Investors

Ardoino reportedly made the announcement right after it was revealed that Sam Bankman-Fried had reached out to multiple investors to support the exchange.

Bankman-Fried reached out to multiple investors from the crypto industry and was able to bring many key investors on board.

These investors were Sequoia Capital, OKX, Tether, and Binance. Sequoia Capital is a major venture capital firm and OKX is a crypto exchange.

Tether also announced that compliance with law enforcement required them to take action against the funds belonging to FTX.

Therefore, they have frozen $46.36 million worth of USDT that was stored on the wallet belonging to the Tron blockchain. Tether went on to confirm that the high number of USDT belongs to FTX.

At the time of writing, the value of FTT is $1.34 and it has fallen 24.73% in the past 24 hours. A day back FTT’s overall market rank was 106 and following the plunge, it has fallen to 210.

Leave a Comment