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Jolt To Crypto World As FTX Files For Bankruptcy

FTX had raised USD 400 million in January which valued the company at USD 32 billion

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Crypto exchange FTX on Friday filed for bankruptcy to seek protection from US federal government. The platform’s noted founder and CEO Sam Bankman-Fried resigned.

This is the biggest development in the crypto world this year which has seen the value of cryptocurrencies plummeting and exchanges filing for bankruptcies. 

The latest FTX fiasco has drawn stern opinions on the industry and calls for tighter regulation.

Even as the traders on FTX hurried to withdraw nearly USD 6 billion from the exchange anticipating the blowout, withdrawals on the platform were frozen. 

Earlier in the week, Binance had entered into a non-binding agreement to fully acquire its rival FTX. But Binance backed out from the deal citing news reports of FTX mishandling customer funds and alleged US agency investigations.

FTX’ fall is one of the biggest in recent times considering it was one of most favoured companies in the crypto space. It had raised USD 400 million in January that valued the company at USD 32 billion. As per Reuters, the company had gotten funding from investors including Temasek and the Ontario Teachers' Pension Plan as well as celebrities and sports stars.

Earlier on Friday, FTX Founder and CEO Sam Bankman-Fried tweeted that he was sorry. “Hopefully things can find a way to recover.  Hopefully this can bring some amount of transparency, trust, and governance to them. Ultimately hopefully it can be better for customers,” he added.

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FTX cryptocurrencies bankruptcy