Crypto exchange FTX files for bankruptcy of Investing.com

Crypto exchange FTX files for bankruptcy of Investing.com
Crypto exchange FTX files for bankruptcy of Investing.com

Crypto exchange FTX files for bankruptcy of Investing.com

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Investing.com – The FTX Stock Exchange announced that after much speculation about the company’s ability, it has filed for formal bankruptcy to protect it from creditors, according to a statement posted on its Twitter account.

This comes after regulators froze some assets at troubled exchange FTX and its industry peers to limit losses on Friday amid the company’s deepening solvency problems and increased scrutiny of its chief executive Sam Bankman-Fried.

This week-long saga, which began with the exit of FTX, one of the largest cryptocurrency exchanges, and a failed takeover by arch-rival Binance, impacted the already-battered coin and other tokens.

A source said Thursday that FTX is scrambling to raise about $9.4 billion from investors and competitors as the exchange desperately tries to bail out after a rush of client withdrawals.

The problems appear to be multiplying for FTX. The Bahamas Securities Commission announced on Thursday that it has frozen the assets of FTX Digital Markets, a subsidiary of FTX. Bankman-Fried is also under investigation by the U.S. Securities and Exchange Commission for possible securities law violations, according to an unconfirmed tweet by a Bloomberg reporter.

bankruptcy

The largest crypto exchange Binance has withdrawn from the rescue plan of its giant competitor FTX by ex-billionaire Sam Pinkman Fried.

“Our hope was to assist FTX clients in providing liquidity, but the issues are beyond our control or ability to assist,” Binance, which was founded by Zhang Bing Zhao, said in a statement.

Within hours, it became clear that rescuing FTX would be a difficult task for Binance as its executives were staring into a financial black hole (a gap between liabilities and assets in FTX could be in the billions, potentially more than $6 billion ). to Bloomberg According to sources and verified by “Al Arabiya.net”.

U.S. regulators have sought to probe whether FTX is properly handling client funds and its ties to other parts of Bankmanfried’s crypto empire, including his trading firm Alameda Research, Bloomberg News reported on Wednesday.

Zhao himself admitted that there was no “master plan” to acquire FTX, as it leaves the fate of the ailing exchange and its clients uncertain, and sparks renewed concerns about the risks of contagion across the crypto industry.

Digital assets fall again, with Bitcoin falling below $16,000 after Binance announcement.


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