FTX: second largest cryptocurrency platform declares bankruptcy

FTX, the second largest cryptocurrency exchange company based in the Bahamas, has declared bankruptcy on Friday, 11 November 2022. Two weeks ago, the group was valued at 32 billion USD. In a matter of days, its owner and founder Sam Bankman-Fried lost 93% of his for-tune valued at 15 billion USD.

The revelations in the press about the investments of the Alameda Research fund, belonging to Sam Bankman-Fried, were at the origin of this bankruptcy.

Reports claim that the fund was investing in cryptoassets issued by FTX in financial arrangements fraught with the risk of major conflicts of interest. It also turns out that the Alameda Research fund's assets were mostly denominated in FTT, a cryptocurrency used only on the FTX platform.

Following these revelations, FTX's competitor, Binance, decided to sell the FTT tokens, thus causing a loss of credibility in this currency and the collapse of its price.