FTX in bankruptcy proceedings
A cryptocurrency exchange has filed for bankruptcy under Chapter 11 of the US Bankruptcy Code.
Cryptocurrency exchange FTX has begun bankruptcy proceedings. The petition was filed under Chapter 11 of the U.S. Bankruptcy Code (so-called Chapter 11).
The situation at FTX has changed dramatically over the past two weeks. First, there were reports of large losses for an FTX-related fund. However, the company Binance declared its intention to acquire the company. However, it quickly backed away from this idea, reporting that FTX’s situation was much worse than it had assumed. Then customers began withdrawing their money en masse.
Today, FTX has a multibillion-dollar hole between its assets and liabilities with many of the funds that served customers. On top of that, there are debts. The company was also in the midst of many acquisitions before it lost liquidity.
Control of FTX fell into the hands of John J. Ray III, a restructuring specialist. He was involved in the liquidation of Enron Corp – one of the largest bankruptcies in history.
FTX was founded by Sam Bankman-Fried in 2019. The 30-year-old has since raised nearly $17 billion. As recently as January, FTX was valued at $32 billion.
The company’s bankruptcy has badly shaken the cryptocurrency market.
Source: https://strefainwestorow.pl/strefa-global-market/kryptowaluty/ftx-kryptowulty-bankructwo
