Further details emerge on FTX missing fund and Chapter 11 bankruptcy



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Further details emerge on FTX missing fund and Chapter 11 bankruptcy

As crypto traders are still vying to stomach the collapse of crypto exchange FTX with peers and partners are distancing themselves from the beleaguered crypto exchange provider, further details have emerged on the bankruptcy of FTX.

Nonetheless, followed by the announcement of FTX’s filing for a chapter 11 bankruptcy protection, it was reported that the FTX CEO Sam Bankman-Fried had fled the country, but was remained under supervision in Bahamas.

In point of fact, whispers were loudening since November 2 that the crypto exchange might have been facing off mass-scale liquidity crises, while recent media headlines had revealed that the crypto exchange had collapsed during an attempt from the CEO Bankman-Fried to transfer $10 billion to Alameda, an FTX affiliated crypto trading exchange.

According to court documents, during the transaction, there had been an unauthorized access into the account, which had led to an entire evaporation of the clients’ crypto coins.

So far, FTX is due an eye-propping $1 billion in comparison to a leverage of around a $9 billion, eventually leading to a catastrophic collapse.

Further details on FTX bankruptcy revealed

According to court documents, FTX had filed for a chapter 11 bankruptcy protection on November 2 citing unauthorized access into the firm’s account.

Besides, the firm’s Chief Executive, Fried-Bankman also had resigned from the board. As of now, it is reported that the collapsed crypto trading platform, once one of the largest across the globe, had been scuffling to raise billions in order to avert a bankruptcy, as FTX traders had hurried to withdraw as many as a $6 billion from the platform in less than three days.

Besides, Binance rejected a proposed rescue deal this week, eventually leading to an inevitable bankruptcy for FTX.