Cryptocurrency Exchange FTX Filed Chapter 11 Bankruptcy

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It has been a weeklong roller coaster ride, even for the cryptocurrency market standard, with FTX’s bankruptcy.

Crypto exchange FTX files for bankruptcy

This is arguably the most action-packed week in the cryptocurrency space since the start of the week. FTX, one of the leading cryptocurrency exchanges in the world, has filed for bankruptcy following a series of events that showed how poorly Sam Bankman-Fried treated the company.

Earlier this week, Binance revealed that it would liquidate $584 million worth of FTT tokens, with Changpeng Zhao revealing that the decision was due to information that came to light.

FTX then began experiencing liquidity problems, with reports indicating that FTX was using client money to fund Alameda Research, the hedge fund owned by Bankman-Fried.

Binance offered to acquire FTX and assume its obligations, but later pulled out of the deal after reviewing FTX’s books.

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FTX announced earlier today that it has now filed for Chapter 11 bankruptcy along with numerous FTX affiliates, including FTX US and Alameda Research.

Additionally, CEO Sam Bankman-Fried has resigned and Chicago-based attorney John J. Ray III has been appointed to assume the position. The cryptocurrency exchange seeks bankruptcy protection in Delaware.

FTX is currently under investigation in the United States by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

FTX is also at risk of losing its license in Europe following the collapse of the cryptocurrency exchange.

$150 Billion Was Wiped From the Crypto Market This Week

The cryptocurrency market has suffered massive losses this week, all thanks to the collapse of FTX. The total cryptocurrency market cap was over $1 trillion at the end of last week.

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However, at the time of this report, the total crypto market cap stands at $852 billion. Bitcoin has lost 19.5% of its value this week and is now trading at around $16k per coin. Ether is also down 22% this week and is now trading around $1,200.

Crypto.com Pauses USDC and USDT Withdrawals on the Solana Network

In another bearish news this week, crypto exchange Crypto.com informed its customers that it had stopped the recordings of USDT and USDC stablecoins on the Solana network.

Crypto.com said the move was immediate and users will also not be able to deposit USDT and USDC stablecoins through the Solana network. USDT and USDC will continue to be available through other networks, including Ethereum and Cronos.

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Binance replenishes its emergency fund

Following the collapse of the FTX, most cryptocurrency companies have been on the defensive this week. Most companies came out to reveal whether they had money tied up with FTX and whether they could handle the resulting effect.

Binance, the world’s leading cryptocurrency exchange, has revealed that it topped up the Binance Secure Asset Funds for Users (SAFU) to $1 billion. The crypto exchange said the amount had fallen to $735 million since the beginning of the year due to the ongoing crypto winter. The move is seen as a guarantee from Binance that user funds are safe on the platform.