This week in crypto: The FTX saga continues to unfold

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Companies affected by the recent collapse of FTX are starting to come out and the bankruptcy filing is currently underway.

Numerous companies have been affected by the collapse of FTX

ftx filed for bankruptcy on Chapter 11 last week, a move that saw one of the largest crypto exchanges in the world crumble. Several companies have come out in recent days to reveal the losses incurred from the collapse of FTX.

Liquid, a Japan-based cryptocurrency exchange, stopped recording earlier this week, citing the collapse of FTX. The crypto exchange was acquired by FTX in February this year and is now affected by the events.

Crypto lending platform Salt is another company that stopped withdrawals due to the liquidation of FXT. Nigerian crypto startup Nestcoin revealed that more than $4 million was tied up on FTX. As a result, the company said it would lay off more than 50% of its staff and cut other expenses.

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BlockFi is preparing to file for Chapter 11 bankruptcy, citing “significant exposure to FTX and related corporate entities. This comes after BlockFi and FTX US signed a credit agreement earlier this year.

As the case unfolds, the Securities Commission of the Bahamas revealed earlier this week that it had seized assets from FTX Digital Markets, the parent company of FTX and FTX US. The move came after assets began disappearing from FTX Digital Markets accounts.

Meanwhile, former CEO Sam Bankman-Fried claimed that FTX US had enough assets to pay back all customers. Bankman-Fried, along with other Alameda Research executives, is set to testify during an upcoming House Financial Services Committee hearing on the collapse of FTX. Finally, the Australian Securities and Investments Commission (ASIC) license suspended issued to FTX Australia earlier this week.

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OKX is launching a $100 million market recovery fund

After the collapse of FTX, some crypto exchanges are taking action to further protect their customers. OKX Exchange revealed earlier this week that it would be setting up a $100 million market recovery fund.

The fund would help blockchain projects that are struggling due to, for example, a lack of funding.

Binance’s expansion continues

In a week dominated by FTX news, Binance continues to cement its place as the leading crypto exchange in the world. The crypto exchange revealed earlier this week that it did receive a regulatory nod from Abu Dhabi’s Financial Services Regulatory Authority to provide institutional crypto custody,

Binance.US, the American branch of Binance, is preparing for a bid for bankrupt lender Voyager Digital. Binance US previously lost a bid to acquire Voyager Digital to FTX US. However, with FTX now out of business, Binance US plans to make another bid for the company.

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Binance too announced the launch of the CR7 NFT collection. This is the first NFT collection from the popular football star Cristiano Ronaldo and contains seven animated collectibles with four rarity levels.

Bitstamp registers with the Spanish central bank

Luxembourg-based exchange, Bitstamp, revealed earlier this week that it had secured its registration with Spain’s central bank. This latest development means that the exchange can now legally offer its services to its users in Spain, both for fiat currency and digital assets.

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