Crypto exchange FTX filed for bankruptcy

Sam Bankman-Fried's FTX crypto exchange has filed for bankruptcy, and the billionaire himself is stepping down as the company's chief executive officer.

FTX has recently been the third crypto exchange in the world. Its collapse began with a Coindesk article that came out on November 2 and caused investors to flee. It said that at least 40% of the assets of the Bankman-Fried trading company Alameda Research are in the low-liquid FTT cryptocurrency, issued by its own FTX exchange. Investors reacted to this information extremely nervously, rightly assuming that any large FTT sale could collapse the entire structure - which happened a few days later.

FTX was hit by the founder of Binance, Changpeng Zhao: On November 6, citing “recent revelations,” he announced that he would liquidate all of his positions in FTT for $580 million.

On Tuesday, it was announced that Binance, the largest player in the market, will buy FTX to help it out of a “liquidity crisis.” But a day later, Binance changed its mind about buying FTX. This further exacerbated the problems of the exchange. All this was preceded by a long conflict between the founders of FTX and Binance. We talked about it in more detail here .

The main question now is what will happen to FTX customers' money. According to Bloomberg, on Wednesday, Bankman-Fried announced to investors that his crypto exchange was facing an $8 billion deficit. “I screwed up,” the billionaire admitted.

The crash of FTX (the fourth cryptocurrency crash in 2022) caused a collapse in the cryptocurrency market. Bitcoin fell by 20% in a week. The FTT token has collapsed by almost 90%.

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