FTX, one of the most popular exchanges in the cryptocurrency market, has just declared bankruptcy, and with it millions of clients without being able to withdraw their money.
The cryptocurrency market is experiencing turbulent times, not only setting records in annual falls, but also affecting the different exchange platforms that users have been using for a long time and in which they have deposited all their digital currencies.
And the founder and CEO of the cryptocurrency exchange FTXthe crypto millionaire Sam Bankman-Friedhas gone from having 17,000 million dollars in his portfolio to being “only” with 1,000 million dollars, a drop in his assets due to an unsuccessful sale of his company that he had been running since 2019.
Although on Tuesday Binance showed interest in rescuing FTX, finally at the last minute the CEO indicated that “withdrew from the agreement” After studying the accounting books of the company, he points out from bloomberg.
This caused all of FTX’s clients to withdraw $6 billion worth of cash in just a few hours, bankrupting the company. It has also affected the digital token FTTFTX’s own token, which has lost more than 80% in value compared to last week.
Although the crypto businessman Sam Bankman-Fried has ensured that all remaining FTX clients would get their money back, it is not very clear what may end up happening in the next few hours.
In addition, today, Friday, the bankruptcy of FTX has been consummated with Sam Bankman-Fried resigning from his position. After failing to find a buyer to rescue the company, he has finally gone under with all his clients.
FTX will file for bankruptcy legislation, the famous Chapter 11 in the United States
Now FTX, Alameda Research and some 130 group subsidiaries will file for bankruptcy legislation, Chapter 11 in the United States, to get the most out of the assets they still have.
This leaves funds of around 1 million users in the air and is going to affect the market for cryptocurrencies for the next few weeks.
This also means the downfall of Sam Bankman-Fried, a physics graduate from MIT who began operating with Bitcoin and went on to create an entire empire in this digital currency market.
His fortune reached 16,000 million dollars, staying at only 1,000 million dollars in just a few days.
It is one more example of the turbulent market that cryptocurrencies suffer, and where it is increasingly difficult for a client to find a convincing platform for the long term.
