FTX legal and compliance team reportedly quit amid massive uncertainty

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According to the recent reports, a major part of FTX’s legal and compliance team have recently left the crypto exchange amid the ongoing crisis. The news comes at a time when the exchange is already experiencing significant difficulties.

As per the reports by Semafor, confidential sources informed the outlet on Wednesday (November 9, 2022) about the departure, which supposedly took place on Tuesday evening. However, FTX has not yet issued an official statement regarding the departure of its legal and compliance employees.

FTX intensifies the ongoing winter season

The recent market instability that has brought Bitcoin below the two-year low is closely related to the failure of FTX, which used to be the world’s leading crypto exchanges a few days back. According to Coingecko, the price of the company’s own native token, FTT, has fallen to less than $3.50 as the cryptocurrency exchange continues to fight to stay afloat. 

For those who are unaware, the price of FTT tokens dropped once Binance’s CEO stated it will liquidate 23 million of unsold FTT tokens. As a result of this announcement, an overwhelming volume of withdrawal requests caused  FTX to shut down the system due to severe liquidity concerns. However, the CEO Sam Bankman-Fried first assured users by asserting that “FTX is Fine”. Eventually, the worsen situation resulted in him requesting Binance to acquire the exchange.

Despite the fact that there were earlier reports related to acquisition and Binance agreeing to acquire FTX, the situation took a 180 degree flip when Changpang Zhao’s cryptocurrency exchange withdrew from the takeover. Binance is said to have reconsidered the takeover agreement after taking a look at FTX’s financials, according to a source who requested anonymity.

Meanwhile, concerns among several major players about the potentially disastrous outcomes of this event can be seen surfacing after the refusal of Binance takeover. Gary Gensler, Brian Armstrong, CEO Changpang Zhao, Charles Hoskinson and many others are some of the names in the list.

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