Home Business Cryptocurrency exchange FTX collapses after losing $662 million

Cryptocurrency exchange FTX collapses after losing $662 million

Cryptocurrency exchange FTX, which filed for bankruptcy on Friday, lost $662 million worth of cryptocurrencies in one day under mysterious circumstances.

According to Bloomberg, “Crypto platform FTX and its founder Sam Bankman Frad have suffered a mysterious loss of nearly $662 million in crypto over the past 24 hours, representing the latest development in one of the darkest periods of cryptocurrencies.”

According to the publication, the legal adviser of the exchange, Ryan Miller, called the movement of funds from wallets “suspicious”, and, according to him, FTX began transferring digital assets to offline wallets to reduce the damage from unauthorized transactions.

According to Nansen Analytics, an outflow of $ 662 million was recorded from international and American exchanges, while the head of the company added: “It is not clear who exactly is engaged in these transactions.”

On Friday, the platform announced that it had filed for Chapter 11 bankruptcy, and founder Sam Bankman-Fried stepped down as company president after losing about 94% of his fortune in one go. day because of this crisis.

According to the head of the Binance cryptocurrency exchange, Changping Zhao, who warned that more companies could collapse in the coming weeks due to problems with FTX.

Zhao said the full impact of the collapse on rival crypto exchange FTX has yet to be felt, stressing that the 2008 global financial crisis was the “most accurate analogy” to this week’s events.

Zhao noted that with the fall of FTX, we will see cascading effects in the market, especially for those close to the FTX system, they will suffer.

Source: agencies

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