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Cryptocurrency platform FTX has filed for bankruptcy in the United States and its founder, Sam Bankman-Fried, has resigned after a turbulent week that led to the bankruptcy of one of the world’s leading cryptocurrency exchanges.
The cryptocurrency platform FTX announced bankruptcy after a week where fears of its impending bankruptcy plunged the cryptocurrency market.
FTX, one of the most important companies in the sector, which was valued at 32,000 million dollars, assured that the declaration of bankruptcy is the appropriate measure to manage the company’s assets and protect the interests of its shareholders.
The bankruptcy will affect some 130 affiliated companies, including its investment firm Alameda Research, but not affiliates Ledgerx.LLC, FTX Digital Markets, LTD, FTX Australia and FTX Express Pay.
They also announced that the new CEO will be John J. Ray III, while Bankman-Fried, its founder and CEO, among numerous firm employees will continue to work to assist the new CEO and independent professionals during the bankruptcy process.
The announcement came only after authorities in the Bahamas, where FTX is headquartered, froze the group’s assets and took the first steps to appoint a person in charge of liquidating one of its entities.
In recent days, doubts about the company’s solvency have been raised, leading many users to massively withdraw money, leaving FTX illiquid and looking for a bailout.
Binance, the world’s leading currency exchange, even announced that it was withdrawing the purchase offer it had announced a day earlier, when it had offered to come to the support of its rival.
“Our intention was originally to support FTX clients in their search for liquidity, but the matter is beyond our control and our ability to help,” Binance said in a statement.
The move triggered another drop in FTT, FTX’s digital asset, and spread sharp declines to the entire cryptocurrency market, just a year after bitcoin hit its all-time high.
Bankman-Fried apologized and admitted that it made mistakes in calculating the levels of liquidity that were necessary. The 30-year-old billionaire assured that he was looking for liquidity and to avoid a bankruptcy that finally materialized today. It is estimated that the deficit is around 8,000 million dollars.
According to a source from The Wall Street Journal, FTX lent its clients’ money to its investment firm, Alameda Research, which used it in aggressive trades and now owes the platform some $10 billion.
with EFE
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