( Observer Network ) Nearly a week after
suffered a bank run, the "giant" in the currency circle and the cryptocurrency empire FTX, which is worth $32 billion, finally couldn't hold on.
On November 11, local time, FTX, the world's second largest cryptocurrency exchange, released a statement on Twitter , and the exchange founder and CEO Sam Bankman-Fried (hereinafter referred to as "Bankman") announced his resignation.
FTX official Twitter screenshot
According to this statement, more than 130 affiliated companies (collectively known as FTX Group) including cryptocurrency exchange FTX, related transactions company Alameda Research, etc. have voluntarily filed for bankruptcy protection in accordance with Chapter 11 of the US Bankruptcy Act, in order to "evaluate and cash assets in an orderly manner based on the interests of global stakeholders."
Wall Street Senior bankruptcy attorney John J. Ray III was appointed as the company's new CEO (CEO), and former CEO Bankman resigned and will continue to help the company conduct bankruptcy restructuring.
John Jay Ray said in a statement that under the protection of Chapter 11 of the US Bankruptcy Act, the FTX Group will have a "respite" opportunity to assess the status quo, formulate a restructuring plan and debt repayment plan, and maximize the recovery of funds for stakeholders.
According to the Financial Times on the 11th, the FTX cryptocurrency exchange has obtained a valuation of more than US$32 billion in just over three years since its establishment, attracting many well-known investment institutions such as Paradigm, SoftBank Group , Sequoia Capital and Singapore Temasek .
Screenshot of the Financial Times report in the UK
However, many institutions have cleared their investment in FTX in recent days. After FTX Group announced bankruptcy protection on the 11th, the currency circle was shocked, and Bitcoin once fell 5% to $16,492, hitting a new low in two years.
report pointed out that the FTX Group's crisis began with rumors of insufficient liquidity in the group's trading company Alameda Research, which flowed out earlier this month, which subsequently triggered a run of investors' money withdrawal. After
Bankman turned to Binance, the world's largest cryptocurrency exchange, for help. On November 8, Binance founder Zhao Changpeng announced that he had signed a non-binding letter of intent to acquire with Bankman for help. But Binance discovered the "black hole" of FTX finance on the first day of launching due diligence and soon announced that it would no longer advance its plans to acquire FTX.
May 11, 2021, Hong Kong, Sam Bankman-Fried, co-founder and CEO of cryptocurrency exchange FTX.
Bankman tried to contact other investors after Binance exited, but none of them succeeded.
On November 11, according to bankruptcy restructuring documents filed by Alameda Research to the court, it has more than 100,000 creditors, and its assets and liabilities are expected to be between US$10 billion and US$50 billion.
Earlier the day, Bankman posted more than 20 tweets on Twitter, admitting that he had "screwed it" and that everything could have been done better, and expressed his "sincere apologies" to all users.
This article is an exclusive article of Observer.com and may not be reproduced without authorization.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-