Crypto

Cryptocurrencies: the fall of the FTX platform and the resignation of its symbolic boss

Cryptocurrency platform FTX, which has been in turmoil for a week, announced on Friday that it is protected by US bankruptcy law and the resignation of its leader, Sam Bankman-Freed. “FTX Trading (…) and approximately 130 subsidiaries of the FTX Group have entered into voluntary ‘Chapter 11’ (bankruptcy) proceedings” to “value and monetize (their) assets,” FTX announced in a statement posted on its account. on Twitter.

The affected subsidiaries include two exchange platforms (FTX.us in the US and FTX.com in the rest of the world), as well as the investment fund Alameda Research, which was created by Mr. Bankman-Fried before FTX. . Mr. Bankman-Freed has been replaced by John J. Ray III and “he will remain to help with a smooth transition,” the statement said. “Chapter 11 mode is appropriate to give the FTX Group an opportunity to assess the situation and put in place a procedure to maximize the return on investment for investors,” says Mr. Ray. The fall of FTX has stunned the crypto world: just over a week ago, the group was considered the second largest crypto platform in the world.

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But the news reported that his Alameda Research fund invested in FTX.com-issued crypto assets in a risky financial package. FTX’s setbacks were exacerbated by industry leader Binance, which offered to buy FTX.com on Tuesday but declined on Wednesday. Escalating volatility in the sector saw cryptocurrencies drop over the week, with bitcoin losing 3.9% to $17,009 around 1450 GMT on Friday.

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