icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
11 Nov, 2022 15:37

Major crypto exchange goes bust

FTX announced the launch of bankruptcy proceedings via Twitter
Major crypto exchange goes bust

Cryptocurrency exchange FTX has commenced voluntary bankruptcy proceedings in the US, the platform announced on Friday.

The company will begin “an orderly process to review and monetize assets for the benefit of all global stakeholders,” FTX said in a statement on Twitter.

Chief Executive Sam Bankman-Fried resigned, and a new CEO, John J. Ray III, was appointed, the exchange added.

The announcement comes days after larger rival Binance abandoned plans to acquire FTX and left the exchange with the task of raising roughly $9 billion from investors and rivals to stay afloat.

Binance backed out of the deal after a due diligence examination and recent reports of mishandled customer funds, as well as alleged investigations by the US authorities into the company. Abandonment of the deal triggered a meltdown in the cryptocurrency market, with the price of Bitcoin sinking to its lowest level in two years.

The initiation of bankruptcy proceedings by FTX may trigger what could be one of the biggest meltdowns in the industry, according to Reuters.

For more stories on economy & finance visit RT's business section