FTX Cryptocurrency Bankrupt, IDR 501 Trillion Valuation Destroyed

Jakarta, CNBC Indonesia – FTX has filed an application to start the bankruptcy procedure. Sam Bankman-Fried has reportedly stepped down as CEO of FTX and has been replaced by John J. Ray III.

Sam Bankman-Fried has also filed for Chapter 11 bankruptcy protection in the United States, which FTX officially announced on Twitter.

In a 23-page bankruptcy filing obtained CNBC International, FTX reports that it has more than 100,000 creditors, assets of $10 to $50 billion, and liabilities of $10 to $50 billion. By comparison, Lehman has over $600 billion in assets and Enron has $60 billion.

John J. Ray III said the immediate release of Chapter 11 was appropriate to give the FTX Group an opportunity to assess the situation and develop processes to maximize recovery for affected parties.

“The FTX Group has valuable assets that can only be managed effectively in a jointly organized process. I want to assure all employees, customers, creditors, contractors, shareholders, investors, governmental authorities and other interested parties that we will undertake this commitment with due diligence, completeness and transparency,” Ray allegedly said CNBC InternationalSaturday (12/11/2022).

In just a few days, FTX’s valuation went from US$32 billion (about 501 trillion rupees) to bankruptcy status due to running out of liquidity. GameStop is reviewing its partnership with FTX.

Under the deal announced in September, GameStop sells FTX gift cards at select stores and FTX promotes retailers on its exchanges.

The termination of business agreements, as happened with GameStop, will likely continue after FTX’s bankruptcy filing.

Anthony Scaramucci, founder of SkyBridge Capital and Trump’s short-term communications director, flew to the Bahamas this week to assist Bankman-Fried as an investor and friend. When Scaramucci got there, he said, he seemed beyond the point of saving mere cash. He said he saw no evidence of this mismanagement when he and other investors first selected FTX as a potential business partner.

“Fulled I think is the right word, but I’m very disappointed because I like Sam. I don’t know what happened because I’m not an FTX insider,” said Scaramucci.

[Gambas:Video CNBC]