In turmoil for several days, FTX and 130 affiliated companies have just been placed under the protection of US bankruptcy law.
The FTX cryptocurrency platform, in turmoil for a week, announced on Friday that it was placed under the protection of American bankruptcy law, and the resignation of its leader Sam Bankman-Fried. “FTX Trading (…) and approximately 130 affiliated companies of the FTX Group have commenced voluntary ‘Chapter 11’ (bankruptcy law) proceedings“, for'”value and monetize (their) assets“, announced FTX in a press release posted on its Twitter account.
Among the subsidiaries concerned, the two trading platforms (FTX.us in the United States and FTX.com in the rest of the world), as well as the investment fund Alameda Research, which had been launched by Sam Bankman-Fried before FTX. A warning message is displayed in red on the FTX.com site, stating that “FTX is currently unable to process withdrawals» et «strongly advise against making deposits».
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For his part, Sam Bankman-Fried was replaced by John J. Ray III, and “will stay to help with a smooth transition“, specifies the press release. “The Chapter 11 regime is appropriate to give FTX Group the opportunity to assess the situation and put in place a procedure for maximum return on investment for investorssays John J. Ray III.
The flashfall of FTX has stunned the cryptocurrency world: Just over a week ago, the group was considered the second-largest cryptocurrency platform in the world, valued at $32 billion in its last fundraising round. funds in January. But news reports revealed that his Alameda Research fund was investing in cryptoassets issued by FTX.com in a risky financial package. FTX’s woes were accentuated by industry leader Binance, which offered to buy FTX.com on Tuesday before backing out on Wednesday. “Every time a major player in an industry goes bankrupt, consumers suffer“, Binance pointed out the same day. This instability caused cryptocurrencies to plunge over the week, and bitcoin lost 7.37% late Friday afternoon to settle at $16,500.
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