Then, a bankruptcy manager can take over the settlement. The supervisory authority has already submitted a relevant court application. The instability of the major trading platform for digital currencies like Bitcoin has kept the crypto market in suspense for days. Many customers fear for their money.
FTX Digital Markets is a Bahamas-based company from the crypto empire of US entrepreneur Sam Bankman-Fried and operates struggling crypto exchange FTX.com. According to the securities regulator, the company is suspected of embezzling client funds.
FTX.com faced liquidity problems after massive withdrawals. On Wednesday, it initially looked like rival Binance would take over the company. But this plan failed. Without a major cash injection, FTX.com is now facing bankruptcy.
The crypto platform faced payment difficulties on Sunday after doubts about its capital reserves led to customer flight and the withdrawal of billions of dollars in funds. Meanwhile, FTX users in the US are also getting more and more nervous.
In fact, FTX’s international and US operations are separate. To try to calm the situation, Bankman-Fried took to Twitter on Thursday, claiming that FTX.US is “100 percent liquid.” At the same time, the platform announced that it may suspend trading for several days. US media also reported that employees in the US were trying to sell parts of the company through some kind of distress sale.
The situation is becoming more and more critical for customers and investors. Unless Bankman-Fried surprisingly finds several billion dollars somewhere, at least FTX.com should be beyond salvage. The 30-year-old crypto entrepreneur assured Tuesday that all deposits are protected and will be paid in full. He dismissed the rumors of money shortages as false.
Bitcoin benefited from the general recovery in the financial market on Thursday and was last hit just under $17,500. On Wednesday, concerns about FTX had pushed it to a two-year low below $16,000.
(SDA)