Troubled crypto exchange FTX is officially insolvent. Tech entrepreneur Sam Bankman-Fried’s group filed for bankruptcy protection in the United States on Friday, according to its own statements.
Bankman-Fried also announced his resignation as CEO. The night before, the Bahamian securities regulator announced that it had frozen certain FTX assets and filed for bankruptcy trustee to settle the transaction.
The Group’s international operations are located in the Bahamas. According to the group, the US proceedings under Chapter 11 of the Insolvency Act include the US crypto exchange FTX US and 130 other companies that together make up the FTX Group.
The imbalance 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. The crypto platform ran into payment difficulties on Sunday after doubts about capital reserves led to customers fleeing and withdrawing billions in funds.
According to the Bahamas Securities and Exchange Commission, FTX is suspected of embezzling client funds. On Wednesday, it initially looked like competitor Binance would take over most of the ailing group. But that plan fell through the next day. (aeg/awp/sda/dpa)
Soource :Watson
I’m Ella Sammie, author specializing in the Technology sector. I have been writing for 24 Instatnt News since 2020, and am passionate about staying up to date with the latest developments in this ever-changing industry.
