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Cryptocurrency platform FTX files for bankruptcy protection

Beleaguered cryptocurrency platform FTX filed for bankruptcy on Friday – a quick end to a company that was hailed as a trusted platform just a week ago. In an official statement, the company said Chief Executive Sam Bankman-Fried had resigned but would remain with the company to help with an orderly transition. FTX also indicated that it would initiate a process to review and monetize assets for stakeholders. John J. Ray III has been named as the new CEO of the FTX Group.

The order includes FTX Trading Ltd., the company that presides over the global trading site FTX.com; Alameda Research, a trading company founded by businessman Bankman-Fried; and the company on FTX US, a platform for US users.

FTX is the latest in a series of cryptocurrency companies seeking bankruptcy protection in 2022. Months ago, Bankman-Fried acted as a lender of last resort for its industry. Its fortunes turned around in the last 10 days after a report by CoinDesk showed the depth of the relationship between FTX and Alameda Research, causing a loss of confidence in the platform by amateur and professional investors.

In previous tweets, Bankman-Fried said that the US division of FTX would not be affected by the liquidity crisis of FTX International. FTX International halted cryptocurrency and fiat withdrawals last Tuesday.

FTX US said on Thursday that “trading may stop at FTX US in a few days.” Bitcoin dropped after the announcement to trade near $16,500 each.

Source: CNN Brasil

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