FTX files for Chapter 11 bankruptcy and the crypto ecosystem is on the verge of collapse

Question

Sam Bankman-Fried is stepping down as CEO and their lawyer is stepping in to cover them during the filing.

TLDR: FTX went from a $32 billion dollar company to the brink of collapse, was then on the verge of being acquired (Binance) and was quickly rejected after due diligence. Customers were unable to withdraw their funds and the collapse has impacted the crypto ecosystem.

John J. Ray III, a lawyer who stepped in during the final days of Enron (LOL), takes over as CEO to oversee the Chapter 11 proceedings.

What a ride this is...

PS: FTX US is 'okay' but who feels good about that honestly?

cualquier · Accepted Answer

All this apologizing on Twitter... like dude, transparency and trust, don't just magically appear. You gotta own this and do some time for the fraud because holy cow, this is madness. I'm surprised he hasnt been arrested yet.

DoctorRV · Answer

I am completely naive but where did all the money go ? Did it evaporate ? Someone must still have it ? No ?

peraong · Answer

Risky investments are fine if you have the capital or the knowledge to absorb the risk. The lack of transparency in crypto in general is now at the forefront of it all... FTX, the global company linked to FTX US, had an up-to-$10 billion hole in its books and is being investigated by the feds 😬

craterbaker · Answer

You're not lying about being on the verge of collapse because BlockFi is suspending withdrawals now. The connection? BlockFi received over $200 Million from FTX in Summer 2022 to support operations and with them going under...

talesofthecrypt · Answer

More info being updated here: https://www.coindesk.com/policy/2022/11/11/ftx-files-for-bankruptcy-protections-in-us/

FTX files for Chapter 11 bankruptcy and the crypto ecosystem is on the verge of collapse

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