FTX bankruptcy filing: Why the $32B crypto company collapsed, what it means for the future

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Cryptocurrency sector suffers another loss: FTX, one of the biggest players - once valued at $32 billion – declares bankruptcy. Federal regulators are investigating the sudden collapse

The cryptocurrency sector is reeling after the collapse of FTX, a digital currency exchange valued earlier this year at $32 billion. Darla Miles has the story.

Some crypto traders on the platform have said they cannot access their money and may never get it back. The debacle coincides with a rough year for crypto, as the value of bitcoin has fallen more than 60%.with a call for bolstered crypto regulation: "Investors around the globe are getting hurt," he said.

"It's a lot like a bank run where there were rumors that essentially the reserves of FTX were not large enough to meet the demand of customers," Yermack said. "People began queuing up in large numbers to try to make a withdrawal from funds and deposits on the exchange." Ultimately, FTX faces two potential paths out of the crisis, said Yermack, of New York University. In a first scenario, FTX could try to sell itself to a different firm, as it did in its attempt to merge with Binance.

A second option available to FTX is to liquidate its holdings and potentially file for bankruptcy. On Friday, the company announced that it had begun Chapter 11 bankruptcy proceedings in the U.S.

 

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Cant wait to hear what Staples Center gets for a name change in a few years.

No more FTX Arena in Miami? Name change is coming! BangBrosDotCom1 coming in hard with this one 😂

Crypto Arena you next bro! Take sorry ass Westbrick with ya!

It is like Elon watched the FTX goat rodeo for a while then said 'Hold my beer'...

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FTX's U.S. business is in troubleFTX US is separate from FTX, but its fate is likely to be equal.
Fonte: axios - 🏆 302. / 63 Consulte Mais informação »