The bankruptcy of crypto exchange FTX in early November shook the Swiss crypto valley with its 6,000 employees. Nobody wants to accept this in public. In the media, executives remained optimistic even after the FTX bankruptcy, but behind closed doors the mood is different. The Zug crypto scene is an industry filled with fear and uncertainty (Blick reports).
Now the tough year, 2022, took its first victim in Zug with the FTX scandal. Crypto trader Covario AG deposited its balance sheet, as confirmed by the Zug trade registry and bankruptcy office, at the request of “Zentralplus”. According to “Inside Paradeplatz”, 35 employees learned of their fate shortly before Christmas.
Lost 500,000 francs per month
Accordingly, the broker has not paid any benefits since spring. It is said that at that time, Covario AG was trying to save the company with new investors. But the current crypto crisis may have been too much for the company.
The Covario is said to be burning 500,000 francs a month, as reported by “Inside Paradeplatz”. It’s unclear how much more it will take for clients in the bankruptcy case. Unpaid debts must accumulate in the millions.
Nicholas Imfeld
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
