In the midst of this difficult period, investors have been shocked, confirming that the entire crypto ecosystem is on the verge of the abyss.
The company’s dramatic collapse, which has intensified in recent days, was a staggering collapse of what was thought to be one of the most stable crypto firms in the world, especially since Bankman had backed most of the ailing crypto projects between including BlockFi, Digital Voyager and Celsius.
He also invested in Robin Hood Markets, fueling speculation that he would take over the trading app.
He said last year that once his crypto firm FTX gets big enough, it could gobble up CME Group or Goldman Sachs Group.
Close reveal
But 3 people who have dealt with FTX, its executives, and associated trading firm Alameda Research, say this debacle is unlike other crypto failures.
They explained that what happened with the billionaire was a two-pronged process, one being the large cryptocurrency exchange through which investors could trade a range of tokens and derivatives, and the other the large trading company which has benefited from the creation of markets in cryptocurrencies and derivatives. .
They also pointed out that this means not only matching buyers and sellers, but also using your own money to trade.
While an investor and two Bankman executives said that there has been fraud in recent years, pointing out that investors have lost money because of it and $150 million in losses have hit many crypto traders.
Losing 15 billion dollars in one day
Interestingly, Sam Bankman Fried, just a few weeks ago, was considered the code version of the legend of the financial sector, John Pierpont Morgan, who founded the Wall Street giant and the largest American bank, “JP Morgan”, as some they bet on them in terms of the size of the wealth and its success in saving the cryptocurrency industry which has seen a series of consecutive collapses.
However, he lost about $15 billion of his wealth in one day.
And its platform, “FTX”, one of the largest cryptocurrency exchanges in the world, announced on Friday that it will file for bankruptcy, with the resignation of its CEO, Sam Bankman Fried, thus controlling the fall of one of the largest cryptocurrency poles. rich and influential.
Bloomberg reported that cryptocurrency exchange FTX will begin bankruptcy protection proceedings in the United States on Friday, while its CEO, Sam Bankman-Fried, stepped down.
FTX, one of the largest cryptocurrency exchanges in the world, announced on Friday that it will file for bankruptcy, with its CEO, Sam Bankman-Fried, stepping down following a trading scandal that has raised regulatory issues for the company.
The company’s dramatic collapse, which has intensified in recent days, was the staggering collapse of what was believed to be one of the most stable cryptocurrency companies in the world. Instead, there are now angry investors and a growing number of government bodies trying to determine what happened.
Additionally, the Justice Department has launched an investigation into FTX, looking into whether the collapsed cryptocurrency exchange circumvented rules related to consumer deposit protection and dealings with business affiliates.
Sam Bankman Fried, CEO and founder of FTX, resigned from his position and was named John Ray.
FTX said in a statement that about 130 other subsidiaries, including FTX US and Alameda Research, have also entered bankruptcy proceedings.
