The bad news about the crypto exchange FTX does not stop there. The Bahamian securities regulator announced Thursday (local time) that it has frozen assets of FTX Digital Markets. A trustee can then take over the settlement. The supervisory authority has already submitted a corresponding petition. The imbalance of the major trading platform for digital currencies like Bitcoin has kept the crypto market in suspense for days.
FTX Digital Markets is a Bahamas-based company from the crypto empire of American entrepreneur Sam Bankman-Fried and operates the struggling crypto exchange FTX.com. According to the securities regulator, the company is suspected of embezzling money from customers.
FTX.com had run into liquidity problems after huge withdrawals. On Wednesday, it initially seemed that competitor Binance would take over the company. But this plan failed. Without a huge cash injection, FTX.com is now facing bankruptcy. Many customers fear for their money.
The crypto platform ran into payment difficulties on Sunday after doubts about capital reserves led to customers fleeing and withdrawing billions in funds. Meanwhile, FTX users in the US are also getting more and more nervous. In fact, FTX’s international and US operations are separate.
Bankman-Fried took to Twitter on Thursday to try to calm the situation, claiming that FTX.US is “100 percent liquid”. At the same time, the platform announced that it could suspend trading for a few days. US media also reported that US employees tried to sell parts of the company in a sort of emergency sale.
The situation is becoming increasingly critical for customers and investors. Unless Bankman-Fried surprisingly finds a few billion dollars somewhere, at least FTX.com would be beyond saving. The 30-year-old crypto entrepreneur had assured Tuesday that all deposits were protected and would be paid out in full. He dismissed rumors of a shortage of money as false.
Bitcoin benefited from the general recovery in the financial market on Thursday and was recently at just under $17,500. By Wednesday, concerns about FTX had pushed it to a two-year low below $16,000.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
