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FTX, struggling cryptocurrency exchange, files for bankruptcy


After a liquidity problem at the cryptocurrency business triggered action from regulators around the world, cryptocurrency exchange FTX filed for US bankruptcy and CEO Sam Bankman-Fried resigned.

According to a tweet from the company on Friday, FTX, Alameda Research, a cryptocurrency trading fund affiliated with it, and about 130 other businesses have started voluntary Chapter 11 bankruptcy proceedings in Delaware.

After a wave of withdrawals and after a prospective rescue deal by bigger rival Binance fell through within a day, the troubled cryptocurrency trading platform had been fighting to raise billions in funds to avoid collapsing.

The organization’s CEO has been named as John J. Ray III. Bankman-Fried will help ensure a smooth transition.

After a wave of withdrawals and after a prospective rescue deal by bigger rival Binance fell through within a day, the troubled cryptocurrency trading platform had been fighting to raise billions in funds to avoid collapsing.

After a liquidity problem at the cryptocurrency business triggered action from regulators around the world, cryptocurrency exchange FTX filed for US bankruptcy and CEO Sam Bankman-Fried resigned.

According to a tweet from the company on Friday, FTX, Alameda Research, a cryptocurrency trading fund linked with it, and over 130 other businesses have started voluntary Chapter 11 bankruptcy procedures in Delaware.

The organization’s CEO has been named as John J. Ray III. Bankman-Fried will help ensure a smooth transfer.

Following the start of the bankruptcy petition, FTX founder Bankman-Fried sent out a string of tweets saying, “I’m truly sorry, again, that we got up here.” Bankman-Fried expressed optimism that the group’s new CEO would “help deliver whatever is best” in a series of tweets, saying that the bankruptcy filing “doesn’t necessarily have to signal the end for the companies.”

FTX claimed in its bankruptcy filing that it has between $10 billion and $50 billion in assets, between $10 billion and $50 billion in liabilities, and more than 100,000 creditors. According to Ray’s statement, “the FTX group has important assets that can only be efficiently administered in an organised cooperative approach.”

We will perform this work with caution, thoroughness, and transparency, I want to assure every employee, customer, creditor, contract party, stockholder, investor, governmental body, and other stakeholders. Sequoia and SoftBank were two investors who had already devalued their FTX holdings. According to Anthony Scaramucci, the founder of SkyBridge Capital, the alternative investing company is attempting to repurchase its FTX holding.
Bankman-Fried, a 30-year-old crypto executive whose worth was estimated by Forbes to be at $17 billion just two months ago, has experienced a swift turnaround as a result of the situation.

An already faltering Bitcoin and other tokens have been hurt by the week-long fiasco that started with a run on FTX and an abandoned acquisition proposal by rival Binance. Following the FTX announcement, bitcoin fell, trading 5.7 percent down at $16,524. The biggest cryptocurrency in the world plunged to a two-year low on Wednesday of $15,632, but recovered some of its losses in a cross-asset rally when US inflation statistics released on Thursday suggested prices had finally started to ease up.

FTT, the FTX token, fell 34% on Friday to $2.43, for a loss of 89% for the week. Regulators from all across the world intervened as FTX’s problems grew worse.

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