Cryptocurrency platform FTX collapses and files for bankruptcy
Troubled cryptocurrency exchange FTX, which is worth billions of dollars, is seeking bankruptcy protection after it collapsed this week. FTX Trading said its CEO and founder Sam Bankman-Fried has resigned. On Friday morning, affiliated hedge fund Alameda Research and dozens of other companies filed for bankruptcy protection in Delaware. After the cryptocurrency equivalent of a bank run, FTX earlier this week agreed to sell itself to bigger rival Binance, but the deal fell through. Customers fled the exchange after worrying about whether FTX had enough funds.
The troubled cryptocurrency exchange, worth nearly billions of dollars, has filed for bankruptcy protection after the exchange experienced the cryptocurrency equivalent of a bank run. FTX, hedge fund Alameda Research and dozens of other related companies filed for bankruptcy protection in Delaware on Friday morning. FTX US was not expected to be included in the financial rescue package, but it was also part of the company’s bankruptcy filing.
FTX was a cryptocurrency exchange platform
FTX is an online digital exchange for cryptocurrencies and crypto derivatives. It is designed to support BTC options trading and other popular crypto derivatives. FTX facilitates access to best spot trading practices and allows for the transfer of funds through fiat and stable cryptocurrencies such as Ethereum, Bitcoin and Litecoin. It supports select stablecoins and altcoins.
Simply put, FTX is a diversified cryptocurrency exchange. It is mainly used to trade cryptocurrency derivatives. FTX is popular for its Bitcoin options trading. With 45 or more leveraged FTX tokens, the platform has attracted interest from hundreds of work-related traders. Cryptocurrency exchanges have various benefits ranging from 101x leverage to over 20 perpetual swaps.
FTX users lost money when the platform collapsed
Crypto markets, which slumped on Tuesday in anticipation of the Binance FTX deal, are down again. The first victims were FTX users who trusted a company said to be one of the most trusted parts of the crypto ecosystem. FTX stopped withdrawing cryptocurrencies and fiat currencies from the exchange, and many users of the platform began to wonder if they would ever get their money back. On Tuesday, FTX’s head of institutional sales, Zane Tackett, liked a tweet that claimed the firm “gambled with clients’ money and lost… If you haven’t got your money yet, look forward to future dollars. “Bankruptcy Court”.
FTX’s failures are not limited to the financial sector. The company also has major sports sponsorships, including Formula One and a sponsorship deal with Major League Baseball. Miami-Dade County decided Friday to end its relationship with FTX, meaning the venue where the Miami Heat play will no longer be known as the FTX Arena. Mercedes says it will remove FTX from its F1 cars starting this weekend.