Exchange FTX has filed for bankruptcy in the United States after facing problems with liquidity over the last days. The company filed the application last Friday (11), surprising the crypto market.
In addition to the bankruptcy filing, the announcement revealed that FTX CEO Sam Bankman-Fried has resigned from his position. Before this, he posted an apology on Twitter, taking the blame for the liquidity problems at the company.
1) I'm sorry. That's the biggest thing.
I fucked up, and should have done better.
— SBF (@SBF_FTX) November 10, 2022
More than 130 companies currently make up the FTX Group, and all of them were included in the bankruptcy filing. Among them are Blockfolio and other businesses acquired by the group.
FTX Bankruptcy
FTX has filed for bankruptcy, resulting in the exchange’s activities coming to a halt. During the judicial recovery period, legal proceedings filed against the company are dismissed.
FTX’s bankruptcy was filed after the company faced liquidity problems involving other businesses in the group. The exchange claims that Alameda Research may have liabilities of up to US$ 50 billion.
With the departure of the company’s CEO, John Ray III took over during the group’s judicial recovery. In addition to liquidity problems, the exchange recently announced a hacker attack, which may have siphoned US$ 662 million in crypto assets from the platform.
Sam Bankman-Fried has attempted to restore liquidity to the platform through credit lines with crypto companies. The former FTX CEO asked Binance for help, but the exchange backed out of the deal after consulting the group’s balance sheet.
Binance’s help even involved the sale of FTX. However, Changpeng Zhao, the exchange’s CEO, did not accept the terms of the deal. A few days later, the company’s bankruptcy petition was filed in the United States.
FTX also announced a solution involving the Tron network before the bankruptcy filing. The company has partnered with Justin Sun to exchange the FTX token (FTT) for crypto assets from the Tron network. According to a statement from the exchange, US$ 13 million would be destined for this partnership.
“We have agreed with Tron to establish a special line to allow holders of TRX, BTT, JST, SUN, and HT to exchange 1:1 FTX assets.”
The solution was introduced to the exchange on November 10, 2022, one day before the bankruptcy petition was filed. However, with the judicial recovery, trading with the Tron network may be halted until the end of FTX’s bankruptcy administration process.
