picture According to screenshots of social media platforms
On November 11, local time, the world's second largest cryptocurrency platform FTX Trading Company (FTX.com), issued an announcement stating that it would initiate voluntary bankruptcy proceedings.
was once favored by capital market , and FTX, which was very popular for a while, finally came to the brink of collapse. After the news was announced, Bitcoin fell by more than 5% at one point and fell below the integer of $17,000. As of press time, the price of Bitcoin is $16,757.
FTX filed for bankruptcy
Picture According to FTX official website
Recently, an announcement of FTX's bankruptcy filed triggered a shock in the cryptocurrency circle.
On November 11th local time, FTX issued an announcement through its official social media account saying that FTX Trading Company, FTX United States, Alameda Research Company and about 130 other subsidiaries have begun voluntary bankruptcy proceedings in the Delaware District Court in accordance with Chapter 11 of the " United States Bankruptcy Law ", so that assets can be reviewed and cashed in for global shareholders in an orderly manner.
announcement also stated that FTX founder and CEO Sam Bankman-Fried (SBF) has resigned but will continue to assist the company in an orderly transition. Attorney John J. Ray III has been appointed as the new CEO of FTX.
public information shows that FTX is a digital asset derivatives exchange where users can safely trade Bitcoin, Ethereum and other cryptocurrencies. In July 2021, FTX completed a US$900 million B round of financing , with the post-investment company valuation reaching US$18 billion, which is the largest financing in the history of the crypto industry.
On January 31, 2022, FTX announced that it had completed a US$400 million Series C financing with a valuation of US$32 billion. Within one year, FTX has entered countries and regions such as Europe, Australia, Japan, and Canada to carry out related crypto derivative trading services.
On November 11th local time, SBF also posted on social media that he was sorry for the incident. "I hope things can find a way to recover and bring some transparency, trust and governance." In the announcement, John Jay III said: "In order to provide FTX with a process to evaluate the situation and form a process to maximize the recovery of shareholder investment, it is appropriate to immediately provide buffering through Chapter 11 of the US Bankruptcy Act."
In fact, Binance, the world's largest cryptocurrency exchange, had planned to acquire FTX, but gave up the acquisition plan after due diligence.
picture According to screenshots of social media platforms
Binance said on social media platforms, "Due to company due to company due diligence and the latest reports on improper handling of customer funds and suspected investigations by US institutions, we feel that we do not seek potential acquisitions of FTX." "At the beginning, we hoped to provide liquidity to FTX's customers, but these problems exceeded our control and help capabilities."
Guo Zhihao, director of the Legal Committee of the Shenzhen Information Service Blockchain Association and partner of Beijing Yingke (Shenzhen) Law Firm, told Tianmu News reporters that FTX's bankruptcy will first have a serious impact on the currency circle. This can be reflected in the price fluctuations of virtual currency in the past two days. In the long run, it will also cause losses to customer assets. In addition, FTX's bankruptcy also fully reflects the disadvantages of centralized virtual currency exchanges. The pursuit of freedom and fairness of decentralized virtual currency was eventually broken in centralized exchanges.
SBF's legendary life
While the news of FTX's bankruptcy filed attracted attention from all parties, its founder SBF's legendary life was once again mentioned. According to public information and reports from multiple media, Tianmu News reporters tried to outline SBF's life experience from birth to today.
picture According to the FTX official social media account
SBF was born in California, USA in 1992. She is just 30 years old. When I was a child, my family was in a wealthy state, and my parents were law professors at Stanford University .
From 2010 to 2014, SBF studied physics and a minor in mathematics. During college, SBF interned at the famous hedge fund Jane Street Capital, which was the beginning of his career. Here, SBF mainly trades various types of ETFs, futures , foreign exchange and stocks.He even designed an automatic OTC trading system for Jane Street Capital.
In 2017, SBF ended its three-year career as a trader and used its own funds to establish Alameda Research, a cryptocurrency quantitative trading company, and jumped to become the industry's leading quantitative company within one year. Currently, Alameda Research manages more than US$1 billion in its own assets, with an average daily trading volume of approximately US$5 billion to US$10 billion.
In May 2019, SBF founded the digital asset derivatives trading platform FTX. Due to FTX's innovative products and a keen sense of market demand, FTX has ranked among the top global digital asset exchanges in just one and a half years. According to the White House, as of the end of 2021, $15 billion in assets were traded on the platform every day, accounting for about 10% of global crypto trading volume.
FTX's most glorious moment may be in October 2021, when FTX obtained the naming rights of the Miami NBA Stadium until 2040. SBF appeared on the cover of Forbes and was selected as one of the richest people under the age of 30 in the world.
On May 23, 2022, FTX founder SBF was selected for the 2022 "Top 100 Influential People in the World" list of Time magazine. SBF is also the only person in the crypto industry to be selected for the top 100 times.
SBF has predicted that blockchain acceleration, expansion and regulation will be the biggest themes in 2022. He suggested that Stablecoin should be better reported and audited, claiming that “higher transparency will solve 80% of the problem while allowing stablecoins to flourish onshore.”
