The latest news on the bankruptcy of FTX, BlockFi and more
The collapse of FTX, one of the world's largest cryptocurrency companies, continues to send shockwaves around the world of crypto.
FTX, one of the largest cryptocurrency exchanges in the world, has collapsed with breathtaking speed this month.
A run on deposits left the firm owing $8 billion to clients, setting off a chain of events that rocked the crypto world and led to investigations of the Securities and Exchange Commission and the Department of Justice.
This time last month, the $32 billion cryptocurrency company was managing billions of dollars in 'customer assets; now FTX may owe money to over a million people and organizations.
Just three weeks ago, Sam Bankman-Fried, the founder and managing director of FTX and the figure at the heart of the crisis, was trying to reassure his clients. “FTX is doing well,” he wrote on Twitter. "Assets are doing well." The next day, Mr. Bankman-Fried announced his intention to sell FTX to Binance, a rival cryptocurrency exchange.
Within days, Binance pulled out of the agreement, FTX filed for bankruptcy and Mr. Bankman-Fried, once a star of the crypto world, had tendered his resignation.
Here are the latest developments on the crisis:
What's the latest on FTX's bankruptcy?On November 22, a new chapter for FTX began by initiating its bankruptcy proceedings before a federal court in Delaware.
James Bromley, a partner at the Sullivan & Cromwell law firm that represents FTX, said "a significant amount of assets were stolen or is missing".
The bankruptcy case involves more than 100 companies and could affect more than a million creditors.
Mr. Bankman-Fried, 30, was replaced as FTX chief executive this month by John Jay Ray III, a veteran of corporate turnarounds, including Enron's bankruptcy proceedings. Mr Ray wrote in a scathing court filing in the US Bankruptcy Court for the District of Delaware that he had never encountered "such a complete failure of corporate control".
"This situation is unprecedented," Mr. Ray added in the filing.
How could this affect BlockFi and other companies?The FTX implosion has sent shockwaves through the crypto and financial communities. Many crypto funds and start-ups have been entangled with FTX, which has extended lifelines to other businesses after the crypto market collapsed in the spring.
Crypto asset prices fell on Monday, and the price of Bitcoin fell.
Monday, BlockFi, a cryptocurrency lender and service company financial institutions closely linked to FTX, filed for bankruptcy. BlockFi had suspended withdrawals this month, explaining that it...
The collapse of FTX, one of the world's largest cryptocurrency companies, continues to send shockwaves around the world of crypto.
FTX, one of the largest cryptocurrency exchanges in the world, has collapsed with breathtaking speed this month.
A run on deposits left the firm owing $8 billion to clients, setting off a chain of events that rocked the crypto world and led to investigations of the Securities and Exchange Commission and the Department of Justice.
This time last month, the $32 billion cryptocurrency company was managing billions of dollars in 'customer assets; now FTX may owe money to over a million people and organizations.
Just three weeks ago, Sam Bankman-Fried, the founder and managing director of FTX and the figure at the heart of the crisis, was trying to reassure his clients. “FTX is doing well,” he wrote on Twitter. "Assets are doing well." The next day, Mr. Bankman-Fried announced his intention to sell FTX to Binance, a rival cryptocurrency exchange.
Within days, Binance pulled out of the agreement, FTX filed for bankruptcy and Mr. Bankman-Fried, once a star of the crypto world, had tendered his resignation.
Here are the latest developments on the crisis:
What's the latest on FTX's bankruptcy?On November 22, a new chapter for FTX began by initiating its bankruptcy proceedings before a federal court in Delaware.
James Bromley, a partner at the Sullivan & Cromwell law firm that represents FTX, said "a significant amount of assets were stolen or is missing".
The bankruptcy case involves more than 100 companies and could affect more than a million creditors.
Mr. Bankman-Fried, 30, was replaced as FTX chief executive this month by John Jay Ray III, a veteran of corporate turnarounds, including Enron's bankruptcy proceedings. Mr Ray wrote in a scathing court filing in the US Bankruptcy Court for the District of Delaware that he had never encountered "such a complete failure of corporate control".
"This situation is unprecedented," Mr. Ray added in the filing.
How could this affect BlockFi and other companies?The FTX implosion has sent shockwaves through the crypto and financial communities. Many crypto funds and start-ups have been entangled with FTX, which has extended lifelines to other businesses after the crypto market collapsed in the spring.
Crypto asset prices fell on Monday, and the price of Bitcoin fell.
Monday, BlockFi, a cryptocurrency lender and service company financial institutions closely linked to FTX, filed for bankruptcy. BlockFi had suspended withdrawals this month, explaining that it...
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