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Crypto exchange FTX files for bankruptcy

Troubled crypto exchange FTX is officially insolvent.

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Crypto exchange FTX files for bankruptcy

Troubled crypto exchange FTX is officially insolvent. Tech entrepreneur Sam Bankman-Fried's group applied for bankruptcy protection in the United States on Friday, according to its own statements. Bankman-Fried also announced his resignation as CEO. The previous evening, the Bahamian securities regulator announced that it had frozen certain FTX assets and had applied for a liquidator to handle the transaction.

The Group's international operations are based in the Bahamas. According to the group, the US proceedings under Chapter 11 of the insolvency law affect, among other things, the American crypto exchange FTX US and 130 other companies that together form the FTX Group.

The imbalance of the large trading platform for digital currencies such as Bitcoin has kept the crypto market in suspense for days. Many customers fear for their money. The crypto platform ran into payment difficulties on Sunday after doubts about capital reserves led to customer flight and billions in funds being withdrawn.

According to the Bahamian securities regulator, FTX is suspected of embezzling customer funds, among other things. On Wednesday it initially looked as if the competitor Binance would take over most of the ailing group. But that plan fell through the next day.

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