FTX was valued at $32 billion (u00a326 billion) a year ago, but in November it filed for bankruptcy protection. Funds worth an estimated $8 billion were missing, according to estimates.
Sam Bankman-Fried, the exchange’s founder and former CEO, has been charged with scamming investors and consumers in order to cover debts accrued by his cryptocurrency-focused hedge fund, Alameda Research. He’s denied the allegations of fraud. Customer funds’ future, however, is still unknown.
Source: Bloomberg Television
Total failure, Instead of just liquidating assets or selling the platform, Mr. Ray is considering the notion of reviving it, according to theWSJ article.
The BBC contacted FTX for comment, but they did not react right away. Earlier, Mr. Ray criticized the management of the defunct cryptocurrency exchange, claiming he had never seen such a catastrophic collapse of corporate governance.
In his 40-year career, which included managing the collapse of US energy juggernaut Enron, he claimed that what he had discovered since taking over FTX was unprecedented. The Crypto winter. One of the major incidents in what has been called a crypto winter for businesses was the collapse of the exchange.
The collapse of two Terraform Labs-owned coins, Terra Luna and TerraUSD, in May of last year was the first major surprise. The decline caused the value of many other cryptocurrencies, including to drop by $400 billion (u00a3318 billion).
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