The imploding cryptocurrency trading firm FTX is now short billions of dollars after experiencing the crypto equivalent of a bank run.
The exchange, formerly one of the world’s largest, sought bankruptcy protection last week, and its CEO and founder resigned.
Hours later, the trading firm said there had been unauthorised access and that funds had disappeared. Analysts say hundreds of millions of dollars may have vanished.
The unravelling of the once-giant exchange is sending shockwaves through the industry. Here’s a look at the company’s collapse so far:
WHY DID FTX GO BANKRUPT?
Customers fled the exchange over fears about whether FTX had sufficient capital, and it agreed to sell itself to rival crypto exchange Binance. But the deal fell through while Binance’s due diligence on FTX’s balance sheet was still pending.
FTX had valued its assets between USD 10 billion to USD 50 billion, and listed more than 130 affiliated companies around the world, according to its bankruptcy filing
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