March 29, 2024

BitDAO requires FTX and Alameda Research to provide evidence of financial solvency

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BitDAO requires FTX and Alameda Research to provide evidence of financial solvency

Decentralized company BitDAOasks Alameda Research to provide evidence within 24 hours of the sufficiency of liquid funds of the company and the FTX exchange after a sudden drop in the value of BIT tokens by 20%.

After a sudden collapse in the value ofBIT tokens, BitDAO requested from Alameda Research and FTX, including comprehensive evidence confirming the implementation of the agreement for the custody of community tokens.

In 2021, the parties entered into an agreement,according to which they carried out a counter conversion of 100 million BIT tokens into 3.36 million FTT tokens. The token swap deal stipulated that Alameda Research would hold BitDAO tokens for at least three years.

BitDAO requires FTX and Alameda Research to provide evidence of financial solvency

The community behind BitDAO in particularcrypto exchanges Bybit and Pantera, there were concerns that Alameda Research could dump 100 million BIT tokens, negatively impacting the market price and leading to a sell-off.

According to the statement
BitDAO, the community may take emergency action against Alameda Research assets if it does not respond within 24 hours:

“If a response to our request does not arrive at"In the near future, if comprehensive alternative evidence is not provided, the BitDAO Treasury will initiate a community vote on how to deal with $FTT."

BitDAO's concerns stem from rumors that Alameda Research is actively liquidating its alt-token inventory to protect its own cryptocurrency, FTT.

BitDAO will also vote on a proposal that will allow the community to track and verify compliance with the FTT-BIT exchange obligations.

In October, the owner of the YouTube channel Bitboy Crypto, Ben Armstrong, criticized
CEO of the FTX cryptocurrency exchangefor his tactics of taking over crypto companies. He called Sam Bankman-Fried a criminal for wanting to control the entire cryptocurrency space.