FTX Exchange Files For Bankruptcy

In a major development, FTX has officially filed documents to claim bankruptcy. In a few days, FTX went from a $32 billion valuation to bankruptcy as liquidity dried up, user funds got locked, and rival exchange Binance ripped up its non-binding agreement to buy the company.

Alameda & 130+ Firms Part of Voluntary Proceedings

The voluntary procedures involve Alameda Research and over 130 additional connected firms. However, FTX Digital Markets, FTX Australia, FTX Expess Pay and LedgerX (which does business as FTX US Derivatives) are not included in the release.

Read More: SBF Was Seeking $9.4 Billion As Rescue Package for FTX

Press Release pic.twitter.com/rgxq3QSBqm

— FTX (@FTX_Official) November 11, 2022

FTX Open Withdrawals Upon Request

Withdrawals from FTX were halted, however, withdrawals from FTX U.S. were unaffected. In response to regulators’ requests, FTX restored withdrawals in the Bahamas and announced that a few additional jurisdictions have started some partial withdrawals over the previous few hours.

Read More: FTX Japan Ordered by Regulator to Suspend Operations

FTX-TRON Deal Shelved?

In an earlier tweet, the cryptocurrency exchange FTX announced its agreement with Justin Sun’s TRON network, which would allow TRX holders and a few other tokens to swap assets from FTX to other third-party wallets. As per the details shared by the exchange, the function will be activated at 18:30 UTC on November 10, 2022.

Market Reaction

Bitcoin’s price immediately fell $1000 on news of the bankruptcy, dropping to $16,500 within minutes.

Reacting to the news, the FTX exchange’s native token, FTT, has fallen by over 27% in the past 1 hour and by 95% in the past 7 days. It is currently trading at $2.3 at the time of writing.

Pratik has been a crypto evangelist since 2016 & been through almost all that crypto has to offer. Be it the ICO boom, bear markets of 2018, Bitcoin halving to till now – he has covered it all.

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