WHY DID FTX GO BANKRUPT? Customers fled the exchange over fears about whether FTX had sufficient capital, and it agreed to sell itself to rival crypto exchange Binance. But the deal fell through while Binance’s due diligence on FTX’s balance sheet was still pending. FTX had valued its ass...
FTX was a leading cryptocurrency exchange that went bankrupt in November 2022 amid allegations that its owners had embezzled and misused customer funds. Sam Bankman-Fried, the CEO of the exchange, was sentenced to 25 years in prison and ordered to repay $11 billion. The catalyst was a Nov. ...
Generally, if you are a shareholder, you will see a substantial decline in the value of your shares in the time leading up to the company's bankruptcy declaration.Bonds for near-bankrupt companiesare usually rated as junk. Once the company goes bankrupt, there is a very good chance you wil...
In the case of the crypto exchange side of BnkToTheFuture, Dixon makes it clear that as a “registered virtual asset service provider,” it has to have disaster recovery, and all clients’ assets need to be distributable at all times, even if the parent company “goes down.” “We actua...