Cryptocurrency platform FTX, which has been in turmoil for a week, announced on Friday that it is under the protection of US bankruptcy law and that its leader Sam Bankman-Fried has resigned. “FTX Trading (…) and approximately 130 affiliated companies of the FTX Group have filed for voluntary Chapter 11 (bankruptcy) proceedings.“, for”value and monetize (their) assets“, FTX announced in a press release published on its Twitter microblog.
Affiliated interests include the two trading platforms (FTX.us in the US and FTX.com in the rest of the world) as well as the investment fund Alameda Research, which was launched by Sam Bankman-Fried before FTX. FTX.com displays a warning message in red stating that “FTX is currently unable to process withdrawals“and”I strongly advise against making deposits“.
In turn, Sam Bankman-Fried was replaced by John J. Ray III, and “will remain to help with a smooth transition“, the press release states. “The Chapter 11 regime is appropriate to give FTX Group an opportunity to assess the situation and to establish a procedure for the maximum return on investment for investors.says John J. Ray III.
The fall of FTX has stunned the world of cryptocurrencies. just a week ago, the group was considered the world’s second-largest cryptocurrency platform, valuing it at $32 billion in its latest fundraising round in January. But news revealed that his Alameda Research fund is investing in cryptoassets issued by FTX.com in a venture capital package. FTX’s woes were highlighted by industry leader Binance offering to buy FTX.com on Tuesday before pulling out on Wednesday. “Whenever a major industry player goes bankrupt, consumers suffer,” Binance noted on the same day. This volatility caused cryptocurrencies to fall for the week, with bitcoin losing 7.37% to $16,500 by Friday afternoon.
Source: Le Figaro
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.