Tether Confirms No Plans to Rescue FTX and Alameda Research - FTX will not receive a bailout from Tether despite CEO Sam Bankman-Fried reportedly reaching out to multiple firms for help.

    Crypto exchange FTX has lost at least one potential rescuer as Tether CTO Paolo Ardoino has confirmed the company does not have any plans to lend or invest in FTX or Alameda Research. 

    Ardoino’s confirmation comes after the company’s stablecoin USDT fell from its peg to $1. Then, there were rumors that Sam Bankman-Fried company Alameda, which borrowed $250,000 USDT from Aave and exchanged it on Curve this morning, may be behind the attack. Speculation on Twitter has it that Alameda is trying to initiate a USDT de-peg with his on-chain visible transaction to trigger fear and he could sell USDT short. Shortly after, Tether announced that it had frozen FTX’s USDT for investigation.

    According to many other reports, not only Tether, Mr. Sam Bankman-Fried also reached out to OKX, Kraken crypto exchanges and venture capital fund Sequoia Capital to seek help. Earlier on Nov 9, Tether along with several leading crypto companies in the US assured the community that they do not have any exposure to Alameda Research and FTX assets.

    FTX is enabling its users to withdraw their funds, but only if they buy select tokens from the Tron network. The deal caused many Tron-based tokens to trade at prices many times higher than on FTX compared to other exas users rushed to get out from the exchange.

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