The cryptocurrency exchange FTX is officially insolvent. Tech entrepreneur Sam Bankman-Fried’s group filed for bankruptcy protection in the United States on Friday, according to its own statements. He also announced his resignation as boss.
The night before, the Bahamian securities regulator announced that it had frozen certain FTX assets and filed for bankruptcy trustee to settle the transaction. The Group’s international operations are located in the Bahamas.
According to the group, the US proceedings under Chapter 11 of the Insolvency Act include the US crypto exchange FTX US and 130 other companies that together make up the FTX Group.
Crypto market in turmoil for days
The imbalance of the major trading platform for digital currencies like Bitcoin has kept the crypto market in suspense for days. Many customers fear for their money. Crypto platform FTX ran into payment difficulties on Sunday after doubts about capital reserves led to a flight of customers and the withdrawal of billions of dollars in funds.
According to the Bahamas Securities and Exchange Commission, FTX is suspected of embezzling client funds. On Wednesday, it initially looked like competitor Binance would take over most of the ailing group. But that plan fell through the next day.
Regulators intervened
An insider pointed out that the US Securities and Exchange Commission is investigating the former stock trader. “Regulators have moved from the US to Japan to the Bahamas,” said Kami Zeng, chief analyst at cryptocurrency-focused asset manager Fore Elite. “There’s more to come.”
Bankman-Fried recently negotiated a $9.4 billion cash injection with competitors and other investors, a person familiar with the matter said. He held talks with crypto exchange OKX and venture capitalist Sequioa, among others.
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.
