Urgent: FTX announces official bankruptcy

 

 

Urgent: FTX announces official bankruptcy

Investing.com - The FTX cryptocurrency exchange announced an official bankruptcy application to protect it from creditors just ago, after much speculation about the company's ability to continue, according to a statement published by the business on its Twitter page.

This came after regulators froze some of FTX's troubled digital currency exchange assets and industry peers to mitigate losses on Friday amid worsening solvency problems at the company and growing oversight of its chief executive, Sam Pankman Fried.

This week-long saga

which began with the exit from FTX

• one of the largest cryptocurrency exchanges

• and a failed takeover attempt by the rival company Binance

• affected bitcoin and other already struggling symbols.

FTX hopes to raise approximately $9.4 billion.

from investors and competitors

1. a source said on Thursday
2. as the stock exchange desperately tries to survive
3. after a rush of customer withdrawals.

The problems seem to be doubling

for FTX. The assets of FTX Digital Markets, a subsidiary of FTX, were reportedly frozen, according to the Bahamas Securities Authority on Thursday.

Bankman Fried is also

under investigation by the U.S.

Securities and Exchange Commission for possible violations of the Securities Act, according to an unverified tweet by Bloomberg's reporter.

Bankruptcy Case

The largest crypto exchange "Pinance" withdrew from the bailout of its former billionaire rival FTX giant, Sam Bunkman Fried.

Pinance, founded by Shang Ping Zhao, said in a statement: "It was our hope that we would be able to support FTX customers to provide liquidity, but the problems are beyond our control or our ability to help."

It became clear within hours that

1. saving FTX would be a difficult task for Paynance
2. as its executives found themselves staring
3. at a black financial hole

(a gap between commitments and assets in FTX that could be in the billions, perhaps more than $6 billion), according to Bloomberg quoted sources and seen by Arabic. net ".

US regulators were seeking to

verify whether FTX dealt properly with customers' funds

 as well as its relationship with other parts of the encryption empire of Knickman Fried, including his business firm Alameda Research, Bloomberg News reported on Wednesday.

Zhao himself acknowledged the lack of

a "master plan" to acquire FTX

leaving the fate of the beleaguered stock exchange and its customers uncertain, raising renewed concerns about the risks of infection spreading through the cryptocurrency industry.

Digital assets retreated

with bitcoin falling below $16,000 following the "Pinance" announcement.

Bitcoin falls to two-year low after FTX bankruptcy news

Bitcoin dropped to its lowest point in the last two years.

• trading on Friday following news that

• the FTX cryptocurrency exchange was bankrupt under Section 11 of

• the U.S. Bankruptcy Code.

According to the FTX blog

• The founder and CEO of the business, Sam Pankman Fried,

• resigned from his post

• and John Ray III was appointed as the company's new CEO.

Bitcoin is losing 3.8% during trading

according to data, by 18:40 Moscow time, the value of bitcoin had fallen to $16.803.

Earlier, the value of bitcoin fell to a two-year low of $16,351.52.

Bitcoin was previously down more than 13 percent and the world's most popular digital currency traded below $ 16 thousand for the first time since November 2020.