FTX declares bankruptcy

FTX declares bankruptcy. FTX announced on Friday that it has filed for bankruptcy protection. The company said CEO SAM Bank Man Freed had quit but would help with a smooth transition. In addition, the company will appraise and monetize assets for all relevant parties worldwide.

In the world of cryptocurrencies, FDX was a very reputable and powerful firm. Start of November, The cryptocurrency trade newspaper coindesk released a report based on a balance sheet from Alameda research, the trading company established by Sam Backmanfreed, which had been compromised. It became apparent that the FTT tokens constituted the bulk of Alameda’s financial sheet. The link between Alameda and FDX was somewhat brought into question by the token that FTX issued. On November 6th, when CEO of the cryptocurrency exchange Finance Mr.Zao, also known as C.C. in the market, tweeted that he was going to sell $580 million worth of FTT tokens, things really got out of hand.              

Investors and dealers were frightened by it. FDXS. Financial House was the subject of numerous speculations on cryptocurrency Twitter, including some that claimed it would be insolvent. Users began taking money out of FDX in large numbers. causing a run on the bank this past week in effect. FT.X saw the withdrawal of about $5 billion in digital and fiat currency. On November 11th, it filed for Chapter 11 bankruptcy in the US along with its affiliated entities. Professional investors in FTX, which include some of the most well-known hedge funds, private equity firms, and pension funds, risk losing all of their money in the stock. Retail traders who put their money in FTX could have a difficult time recovering their funds.

Also Read: Advantages Of Long-Term Stock Holding

About FTX, what do we know?

FTX was established in Hong Kong but got relocated to the Bahamas by Bankman-Fried, who was renowned as one of the cryptocurrency industry’s saviours after helping other businesses during the “crypto winter,” most notably Voyager Digital, which failed after holding a share in Terra.

After launching Alameda Research and FTX, Bankman-Fried had a $26 billion (€25.3 billion) net worth.

However, recent events have resulted in the loss of 94% of his net worth in a single day.

Investigations and potential hacking

On Sunday, Bahamas authorities announced that they were looking into potential criminal activity.

Bahamas Police Force,”a team of financial investigators from the Financial Crimes Investigation Branch is working closely with the Bahamas Securities Commission to examine potential criminal activity in light of FTX’s collapse and provisional liquidation.”

The FTX probe is being launched concurrently. The company revealed Saturday that it was investigating stolen bitcoin holdings and has taken offline all digital assets.

Investors were spooked by another cryptocurrency disaster the same weekend.

FTX declares bankruptcy and Inadvertently sending more than $400 million (€389 million) in Ethereum to the incorrect account, according to Singapore-based Crypto.com.

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