Sunday, December 4, 2022
HomeDigit NewsFTX Group files for bankruptcy

FTX Group files for bankruptcy

Sam Bankman-Fried’s FTX crypto exchange has filed for bankruptcy, and the billionaire himself is stepping down as chief executive officer.

FTX has recently been the third crypto exchange in the world. Her collapse has begun from article Coindesk, which came out on November 2 and caused an investor flight. It, in particular, explained that as of June 30, 2022, the assets of Alameda Research, an affiliated company with the stock exchange, amounted to $14.6 billion. Most of this is an FTT token issued directly by FTX. The article noted that while there is nothing reprehensible or wrong about this, it shows that the Bankman-Fried trading giant relies on a foundation largely made up of a coin that a subsidiary invented, rather than an independent asset such as fiat currency or another stable cryptocurrency.

On Tuesday, it was announced that the largest player in the market, the Binance exchange, will buy FTX to help her get out of the “liquidity crisis”. But a day later, Binance changed my mind about buying FTX. This further exacerbated the problems of the exchange.

All this was preceded by a long conflict between the founders of FTX and Binance.

The crash of FTX (already the fourth cryptocurrency crash in 2022) caused a collapse in the cryptocurrency market. Bitcoin fell 20% in a week.

Some numbers to understand the scale of the problems:

FTX owes about $8.8 billion. Accounts and wallets have:

    • $900 million in liquid assets (USD/JPY/DAI)
    • $2.037 billion – less liquid assets (GBTC/ETHE/SOL).
    • $3.2 billion – illiquid assets (long-term equity investments).
    • $2 billion – additional assets (for example, real estate)

At the same time, one should also not forget that Alameda Research has total liabilities ranging from $10 billion to $50 billion, some of which is directly to FTX.

- Advertisement -
MOBILE

- Advertisment -

- Advertisment -spot_imgspot_imgspot_img

Auto

Two Wheeler

BUSINESS AND FINANCE

Digit News

spot_img