The announcement on the site states, “In FTX USA, trading may be halted in a few days. Please close any positions you wish to close. Withdrawals will remain open.” warning was included.
The warning came at a time when FTX was experiencing a liquidity crisis.
FTX Chief Executive Sam Bankman-Fried shared on Twitter, regarding the liquidity crisis the company was experiencing, “I’m sorry. I screwed everything up, I should have done better.” used the phrase. Stating that he should communicate more frequently and transparently regarding developments, Bankman-Fried emphasized that his number one priority at the moment is to do the right thing for users. Bankman-Fried noted that they will do everything they can to increase liquidity, but cannot promise that they will be successful.
Bankruptcy filing warning from the US press
According to reports in the US media yesterday, Bankman-Fried warned FTX investors that the company may have to file for bankruptcy if a source of cash cannot be found. Bankman-Fried reported that the cryptocurrency exchange is facing an $8 billion deficit. Changpeng Zhao, the Founder and Chief Executive Officer of Binance, the world’s largest crypto exchange, announced on Tuesday that they are planning to acquire FTX. In a statement on Twitter, Zhao stated that FTX asked Binance for help. Pointing out that FTX has a liquidity problem, Zhao said, “In order to protect users, we signed a non-binding letter of intent to fully acquire FTX.com and help resolve the liquidity problem.” However, Binance announced on Wednesday that it has stopped buying FTX. In the statement made by Binance, it was stated that it was decided not to continue the possible acquisition process of FTX as a result of the institutional evaluation, as well as the latest news about misused customer funds and investigation allegations in the USA. “Our initial hope was to assist FTX customers in providing liquidity, but the issues are beyond our control or ability to assist,” the statement said. assessment had been made. It has been reported that the US Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the US Department of Justice have launched an investigation into the cryptocurrency exchange FTX.
A professional writer by day, a tech-nerd by night, with a love for all things money.