Established in 2019, FTX has grown into the world’s 3rd largest crypto exchange with more than 1 million active users. However, the company has recently filed for bankruptcy leaving all of its users with zero investments or assets.
What was launched as a promising cryptocurrency exchange project, eventually turned into a nightmare for millions of crypto traders and investors. The 3rd biggest crypto exchange has filed for US bankruptcy court protection, which will hardly bring any relief to customers and investors facing total losses.
Earlier the FTX CEO said the company owed $1,45 billion to its creditors. In reality, the debt is 3 times bigger. According to the official statement, the collapsed crypto exchange platform owes more than $3 billion to its top 50 creditors.
As stated by the exchange officials, the company is preparing for business reorganization. It is about to review and sell some of its global strategic assets. However, the chances of paying off the debt seem to be quite low.
Furthermore, CME Group CEO calls the FTX CEO Bankman-Fried “an absolute fraud”. What’s more, the company is believed to have been in trouble several months before the collapse.
In simpler words, FTX knew about the upcoming crash but did nothing to prevent its creditors, investors, and customers from a total loss. The situation has eventually grown into the biggest crypto explosion ever known.
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