Ftx In Bankrupt|!
Ftx now in Bankrupt and Ceo dismiss
On Friday, FTX cryptocurrency trading company announced in a press release that it is seeking bankruptcy protection from its creditors and has filed for bankruptcy, according to a news release. Sam Bankman-Fried, the company's founder, chairman, and CEO, has also resigned, the company said. The 130 other companies associated with FTX, including Alameda Research, a Bankman-Fried investment firm, have begun voluntary Chapter 11 bankruptcy proceedings, the company said. FTX's meteoric rise and fall has been dramatic. In a matter of days, the company went from being one of the world's largest cryptocurrency trading platforms to insolvency, customer accounts frozen, regulatory and judicial investigations, and talk of fraud.
Other "black eye" for crypto
The company's liabilities are listed as over $10 billion US on Alameda's court filing. FTX, a crypto firm that has issued a token named FTT, owns over $4 billion of Alameda's assets. One year ago, one FTT token was worth around $80, but on Monday morning they were worth just $22 each. By Friday morning, they were trading for less than $3.
nvestors have dumped opaque cryptocurrency assets following the collapse of FTX, which dragged down all other digital assets with it. Investors have fled from cryptocurrencies like bitcoin because they're dumping them in response to the demise of FTX, which has sparked a broader sell-off in cryptocurrencies.
Other black news from btc
The bitcoin price dipped below $17,000 US on Friday morning, a low point it hasn't touched since 2020. On the other hand, the price of bitcoin soared to nearly $64,000 in late 2021 before a sharp sell-off ensued as a result of high inflation.
There's a lot of exposure in this industry to other entities in the ecosystem that trade with one another, holding positions in each other's crypto tokens. Money moves back and forth quite frequently, and it also draws in a variety of different retail clients, which creates a reputation problem if any of them fail," he said.
Suneet Muru, a GlobalData analyst in England, believes that FTX's demise indicates that the crypto market will suffer more, but in the long run, it will benefit. "Exchanges will be forced to realign their business models to address risk management issues in the near future," he said. "Now more than ever, exchanges must demonstrate how they differ from banks and keep a smaller inventory of their own cryptocurrencies in order to protect their customers."