Cryptocurrency trading company .. Why did “FTX” file for bankruptcy? | Arabic TV

The American cryptocurrency trading company FTX has officially filed for bankruptcy protection, after depleting its liquidity and causing confusion in the cryptocurrency market, which has plunged sharply under the pressure of investors’ fear for their money deposited in the accounts of the American trading platform.

The news of the company’s financial failure in the middle of last week caused depositors to withdraw their money from it in conjunction with the sale of its currencies, for the company to lose most of its market value, which led to the evaporation of the fortune of the CEO of the company, Sam Buckmenfayed, which was 13 billion dollars.

Loss of market value

The company’s depletion of liquidity also caused the loss of its value, which was estimated a few days ago, at about $32 billion, which led to the cancellation of the “Binence” platform, the idea of ​​​​acquiring the company.

FTX was founded in 2019 and its value rose in 2022 to $32 billion before it reached the stage of faltering.

The investment in the group’s Vision Fund in the United States and related international operations amounts to less than $100 million.

The Canadian States Teachers’ Pension Fund invested $95 million in the FTX platform.

In 2021, the platform held a financing round of $900 million, and in 2022 it raised its capital to $25 million from investors and some companies in Singapore.

unregulated track

In this context, Nader Al-Dirani, a digital currency consultant, said that there were no indications of financial stumbling, but on the contrary, the indicators were promising in an unregulated field that allows people to take high risks without supervision or accountability, as happened in 2008 when the global market collapsed when Banks were speculating and buying insurance.

Al-Dirani added in an interview with “Al-Arabi” from Beirut, that “the CEO of FTX wrote on Twitter that he will sell his assets from the currencies associated with the platform, a portfolio valued at one billion dollars, and this was the first indicator of the company’s collapse.”

Al-Dirani pointed out that “the digital currency market is worth 3 billion dollars, and it is small in this world compared to the rest of the sectors, and therefore there will be no collapse for it, and if it occurs, it will be limited.”

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