SBF Files for Bankruptcy, Leaving Investors With Nothing

SBF Files for Bankruptcy, Leaving Investors With Nothing
  • SBF, the CEO of FTX, was forced to file for bankruptcy.
  • FTX owes investors almost $650 million
  • FTT tokens are almost close to its all-time low price

The FTX drama continues. This time, SBF, the CEO of FTX, was forced to file for bankruptcy. The decision was made days after the exchange suffered significant losses due to the issues about the stability of FTX’s business. In a tweet published by Lark Davis, a crypto analyst, and enthusiast, he mentioned that FTX’s bankruptcy filing made the exchange owe investors almost $650 million.

Investors were warned days ago about the possibility of FTX filing bankruptcy if it doesn’t get any cash infusion. Binance is one of the firms that opened doors in the talks of supporting the FTX exchange on its devastating challenge. However, the hope of Binance supporting FTX did not last long. Binance backed out.

Binance explained to one of the media providers in the space,

In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help.

Binance added in a statement that its executives changed their minds because of regulatory concerns and issues with “corporate due diligence.”

As of the time of writing, the FTT crypto trades at a depressing price of $2.58, with an almost -100% decline in the past 7 days. Additionally, the price position of FTT today is nearly the same as its all-time low price of $1.15 in 2019.

In other news, Justin Sun’s crypto trading platform Huobi announced that the firm would allow FTX users to swap their TRON-based tokens on the FTX platform at a 1:1 ratio into their Huobi accounts.  

This move aims to protect the TRON token holders amid the ongoing liquidity crisis at crypto exchange FTX after the troubled exchange halts non-fiat customer withdrawals, says the founder of open-source blockchain platform TRON in a tweet.

disclaimer read more

Crypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.

José is a crypto enthusiast who trades crypto night and day. He loves to share his trading stories and experiences in all his published articles. José likes to hang out and travel to meet new friends. Enjoys sushi, vodka, and tequila.