Crypto exchange is bankrupt – assets frozen

11/11/2022, 4:16 p.m11/11/2022, 4:18 p.m

Troubled crypto exchange FTX is officially insolvent. Technology entrepreneur Sam Bankman-Fried’s group filed for bankruptcy protection in the United States on Friday, according to its own filings.

Bitcoin benefited from a general upturn in the financial market on Thursday, last trading just below $17,500.Image: keystone

Bankman-Fried also announced his resignation as CEO. The previous evening, the Bahamian securities regulator announced that it had frozen certain assets of FTX and asked an insolvency practitioner to handle the transaction.

The group’s international operations are based in the Bahamas. According to the group, the US proceedings under Chapter 11 of the Insolvency Act affect, among others, the US crypto exchange FTX US and other 130 companies that together make up the FTX Group.

The imbalance of a major trading platform for digital currencies like Bitcoin has kept the crypto market on edge for several days. Many customers are worried about their money. The crypto platform ran into payment difficulties on Sunday after doubts about capital reserves led to a flight of customers and the withdrawal of billions in funds.

According to the Bahamas Securities and Exchange Commission, FTX is suspected of misappropriating customer funds. On Wednesday, it initially looked like most of the ailing group would be taken over by competitor Binance. But this plan failed the next day. (aeg/awp/sda/dpa)

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