We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
FTX has collapsed into bankruptcy amid an ongoing “crisis of confidence”. The cryptocurrency trader is now working on returning money to its users.
The decision to file for bankruptcy in the US comes after a particularly difficult week for the crypto exchange – the second largest in the world.
Many customers earlier this week withdrew their funds as rumours suggested FTX, under then-boss Sam Bankman-Fried, was rested on shaky financial ground.
Mr Bankman-Fried yesterday told employees that he was exploring all options to avoid a collapse.
He has today resigned as the company’s Chief Executive Officer.
John J Ray III, a lawyer who has experience with bankruptcy, has since taken the reigns and is seeking to “begin an orderly process to review and monetise assets for the benefit of all global stakeholders”.
In a statement, he said: “The FTX Group has valuable assets that can only be effectively administered in an organised, joint process.
“I want to ensure every employee, customer, creditor, contract party, stockholder, investor, governmental authority and other stakeholder that we are going to conduct this effort with diligence, thoroughness and transparency.
“Stakeholders should understand that events have been fast-moving and the new team is engaged only recently. Stakeholders should review the materials filed on the docket of the proceedings over the coming days for more information.”
READ MORE: Russian official insists ‘Ukraine as a country should not exist’
Analysts are also questioning whether the bankruptcy could be a “Lehman moment” for cryptocurrency, referring to the 2008 collapse of the investment bank, sending tremors across the world.
Nick Saponaro, CEO of Divi Project, which strives to make cryptocurrency more mainstream, said “FTX is Crypto’s Lehman Brothers moment. In fact it’s worse”.
On rebuilding confidence in crypto, he told Express.co.uk: “Greater regulatory oversight is now an inevitability.
“It’s important to remember that centralised exchanges are not crypto companies. Nor are they blockchain companies. They are like banks but with far few controls. Self-custody is the best solution. Decentralised exchanges must step up to the plate and make their services more accessible, secure, and user-friendly.”
DON’T MISS:
Zelensky’s call for no fly zone rejected [OPINION]
Putin’s army from ‘mysteriously weak’ to ‘brutal’ [REVEAL]
People sensationally blame Brexit for Russia’s chilling invasion [REPORT]
He yesterday told his online followers: “I’m sorry. I… should have done better.”
Alongside FTX, the bankruptcy will involve Alameda Research, a trading firm founded by Mr Bankman-Fried, and around 130 affiliates.
See today’s front and back pages, download the newspaper, order back issues and use the historic Daily Express newspaper archive.
Related Posts
