Cryptocurrency platform FTX announced on Friday that it has filed for bankruptcy in the United States and that its founder and CEO, Sam Bankman-Fried, has stepped down.
The decision confirms the total collapse of this platform, one of the most important in the industry, which was valued at $32 billion and has collapsed in recent days due to lack of liquidity, with users quickly withdrawing their funds.
In a statement, FTX assured that the bankruptcy order is the right measure to manage the company’s assets and protect the interests of its shareholders.
The lawsuit will affect about 130 affiliates, according to Efe, including investment firm Alameda Research, but not its subsidiaries Ledgerx.LLC, FTX Digital Markets, LTD, FTX Australia and FTX Express Pay.
The company announced that the role of chief executive will be filled by John J. Ray III and said Bankman-Fried and many of the company’s employees will continue to work to support the new leader and independent professionals through the bankruptcy process.
The move came hours after authorities in the Bahamas, where FTX is headquartered, froze the group’s assets and took the first steps to appoint a person responsible for liquidating one of its entities.
FTX moved to the Bahamas from Hong Kong where it had started operations and established itself as one of the most successful platforms in the cryptocurrency industry.
In recent days, doubts about the solvency of the company have increased due to various information, which led many users to withdraw their funds, leaving FTX without liquidity and looking for a ransom.
The situation was further complicated on Wednesday, when Binance, the leading cryptocurrency platform, announced that it was withdrawing the purchase offer it made the day before when it submitted a proposal to back its rival.
“Our original intent was to assist FTX clients in their quest for liquidity, but the matter is beyond our control and ability to assist”Binance said in a statement.
The decision led to a further fall in the FTT, the digital asset of the FTX, and heavy losses in the cryptocurrency market just a year after bitcoin, the leading cryptocurrency, hit its all-time high.
On Thursday, Bankman-Fried apologized and admitted that he had made mistakes in calculating the liquidity levels needed, as well as explaining the platform’s situation when the crisis began.
The 30-year-old multimillionaire said he was doing his best to obtain liquidity and avoid the collapse, which was due to happen this Friday, with a financial gap estimated at $8,000 million.
However, numerous details have emerged about how the platform operates, including allegations that FTX used millions of dollars deposited by clients to fund high-risk investments.
Source: DN
