The discussion is hot these days about the crypto exchange FTX standing on the verge of bankruptcy. In the past, the company has applied under the Bankruptcy Protection Act in America, after which this news is also coming continuously, the assets of the company are much less than the liabilities.
The company’s founder and CEO Sam Bankman Fried resigned following the bankruptcy process application. It was only after his resignation that the unauthorized transactions in the company’s account came to light. In this, crores of dollars have disappeared from the company’s account. In such a situation, a big question is arising in the minds of the people about how the company reached this condition. Let’s know…
Why is FTX bankrupt?
For some time, customers were leaving FTX due to fears of a lack of funds, due to which it was decided to sell FTX to rival company Binance. Within 24 hours of the cancellation of the deal with Binance, the company filed for bankruptcy last Friday. The application also names 130 subsidiaries related to the company, including the Sam Bankman-Fried hedge fund and Alameda Research.
Was FTX attacked by hackers?
Last Saturday, it was accepted by FTX that the company was attacked by hackers, due to which the company has lost millions of dollars. The company has not said anything about how much damage has been caused by this hacking, but if some reports are to be believed, it has caused a loss of around $ 500 million to the company. At the same time, after this, the question is being raised whether there was a real cyber attack or someone from the company itself stole the funds.
How safe is bitcoin in FTX?
Experts say that if you have bitcoin or any other cryptocurrency on the FTX exchange, then it should be kept away from exchanges like FTX. Should be held with a reputed and secure exchange.
Many agencies are investigating
FTX is facing allegations of misappropriating at least one billion of customer funds. American agencies such as the US Department of Justice and the Exchange Commission are investigating this. The Royal Bahamas Police Force said that they are investigating FTX, due to which the company’s difficulties have increased. Let me tell you, last year FTX shifted its headquarters to this tax haven country.
What was the effect of FTX’s bankruptcy?
After FTX filed for bankruptcy, the prices of other cryptocurrencies, including bitcoin, have seen a decline. This has affected the sports deals done by FTX. Mercedes said on Friday that they were removing the FTX logo from their Formula One car.