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Cryptocurrency exchange FTX files for bankruptcy as Bitcoin falls below $17,000

Cryptocurrency exchange FTX is in serious trouble. | Font: AFP | Photographer: OLIVIER DULIERI

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Cryptocurrency platform FTX announced this Friday that it has filed for bankruptcy protection in the United States and announced that its founder, Sam Bankman-Freed, has resigned.

“FTX Trading (…) and about 130 companies belonging to the FTX Group have launched a voluntary “Chapter 11” bankruptcy procedure in the United States to “value” their assets, announced FTX in a statement posted on Twitter.

Chapter 11 allows companies to reorganize during difficult times without immediate pressure from creditors.

Relevant subsidiaries include exchange platforms FTX.ru in the USA and ftx.com in the rest of the world, as well as the Alameda Research investment fund launched by Bankman-Fried before FTX.

The statement said that Bankman-Freed was succeeded by John J. Ray III and he will “assist with the transition in accordance with the rules.”

“Chapter 11 mode is appropriate to give FTX Group an opportunity to assess the situation and implement a maximum recovery procedure for investors,” Ray said.

The fall of FTX and the earthquake in the world of cryptocurrencies

dizzy fall FTX shook the world cryptocurrencies: A week ago, the group was considered the second largest cryptocurrency platform in the world, and its founder is a privileged interlocutor for regulators.

But press reports have shown that his Alameda research fund has invested in crypto assets issued ftx.com in a complex mechanism, and accusations of investing client funds multiplied.

“I screwed up and I should have done better,” said Bankman-Fried. “I should have applied later,” the platform founder said Thursday.

Difficulties FTX They were backed by the industry’s number one Binance, which on Sunday announced the sale of a cryptocurrency pegged to its competitor, and then offered to buy ftx.com on Tuesday to rejection on Wednesday.

Escalating volatility in the sector has led cryptocurrencies to plummet, with bitcoin hitting $16,666 this Friday, a far cry from the $64,000 peak it hit in 2021.

According to AFP

Source: RPP

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