On November 17, precisely one year ago, the FTX exchange initiated bankruptcy proceedings, appointing John Ray III as its Chief Executive Officer.
The individual responsible for establishing the organization, Sam Bankman-Fried, was convicted after an extensive trial lasting for a duration of one month, during which his associates testified against his character.
The FTX native token, FTT, has seen a decline of 15% in its value, accompanied by a significant decrease of 25% in trading volume.
On November 17, the FTX exchange garners attention within the cryptocurrency industry, despite the prevailing emphasis on the US Securities and Exchange Commission's (SEC) scrutiny of spot Bitcoin exchange-traded funds (ETFs). Interest has been aroused in the defunct trading platform, since the calendar indicates that precisely one year has elapsed since the company initiated bankruptcy proceedings.
The commemoration of the FTX bankruptcy anniversary occurs.
On November 17, one year ago today, the FTX exchange began the process of filing for Chapter 11 bankruptcy protection. The occurrence of bankruptcy ensued as a result of a liquidity difficulty pertaining to its indigenous token, FTT. The disclosure of the platform's leverage and solvency concerns resulted in a phenomenon known as a bank run, when consumers hastily withdrew their funds. In the end, FTX had difficulties in providing service to its clientele, resulting in a suspension of withdrawal operations.
The exchange first attributed the impact to the bear market of 2022. Subsequent investigations brought to light that the Chief Executive Officer and founder, Sam Bankman-Fried (SBF), had engaged in fraudulent activities by misappropriating funds from the exchange. Furthermore, it brought to light his unauthorized use of client cash by extending loans to Alameda Research, a hedge fund affiliated with FTX.
Consequently, Caroline Ellison, the former CEO of Alameda Research and former romantic partner of #sbf , together with Gary Wang and Nishad Singh, former executives of FTX, have been indicted on many criminal charges.
It is crucial to acknowledge that during the first months of 2022, FTX emerged as one of the most prominent cryptocurrency exchanges, with a worth of $32 billion. Nevertheless, subsequent to a surge of withdrawals on the exchange throughout the month of November, the trading platform was obligated to initiate proceedings for Chapter 11 bankruptcy. Subsequent findings have shown that the aforementioned exchange is indebted to creditors in excess of $8 billion.
Upon occurrence, John Ray III assumed the role of temporary Chief Executive Officer (CEO) in order to lead the recovery endeavors with the aim of revitalizing the platform. With the objective in mind, the individual formed a task group to evaluate the feasibility of reviving the exchange as a strategy to enhance the benefits for the creditors.
Sam Bankman-Fried has been found guilty on seven charges of fraud and conspiracy by a 12-member jury earlier this month. Caroline, Singh, and Wang were pivotal witnesses for the prosecution subsequent to their admission of guilt. According to the testimony provided, Bankman-Fried allegedly instructed individuals to engage in illicit activities, including as aiding in the looting of FTX by Alameda and providing false information to lenders and investors about the financial state of the company.
SBF, who is in incarcerated, is awaiting sentence on March 28, 2024, subsequent to the court's decision to revoke his bail in August. The aforementioned actions were motivated by apprehensions over the individual's interference with evidentiary materials and coercion of witnesses. During that period, it was determined that Bankman-Fried used his interim release to engage in intimidation tactics against Caroline Ellison, via the unauthorized disclosure of personal papers and diaries.
As of the present moment, the #FTX's token, denoted as #ftt , is currently being traded at a value of $3.0921. This price reflects a decrease of 15% during the last 24 hours, as well as a substantial decline of almost 90% since the trading platform's insolvency.
