HomeforexThe collapse is chasing digital currency giants and companies preparing for bankruptcy

The collapse is chasing digital currency giants and companies preparing for bankruptcy

A recent report suggested that the wave of collapses in the cryptocurrency market will continue after the announcement of the bankruptcy of the “FTX” platform, as the cryptocurrency lending platform “Block V” is preparing to file for bankruptcy, with great exposure to the “FTX” platform, which is scheduled to To be subject to investigation with the US authorities after declaring bankruptcy during the past few days.

Since the highest value recorded by the “crypto” market, last November, the combined market value of cryptocurrencies has fallen by 73.4 percent, losing about $2.351 trillion, after its total market value fell from the level of $ 3200 billion, to about 849. billion dollars at the moment.

The Wall Street Journal cited people involved in the matter as saying that crypto-lending platform BlockV is planning to lay off some of its employees, while preparing to file for possible Chapter 11 bankruptcy.

BlockV suspended withdrawals and restricted activity across the platform last week, citing its inability to operate business as usual given the uncertainty about FTX’s business. The cryptocurrency market is witnessing a state of uncertainty amid sharp losses in asset prices, after the FTX platform declared bankruptcy during the past days, following a severe liquidity crisis and withdrawals from clients.

Investigation of the owner of the “FTX” platform

Meanwhile, regulators around the world are investigating the collapse of the cryptocurrency exchange FTX, which said in case files that it may have as many as 1 million creditors, according to the Financial Times.

According to Reuters, “dozens of federal, state and international regulators” are contacting the company to search for the reasons for its collapse. Cryptocurrency lending platform BlockV could be the next at risk of collapse. The platform revealed, according to a recent statement, that it intends to file for bankruptcy. The company admitted that there was a “significant exposure” to the “FTX” platform, and last week suspended withdrawals to contain the liquidity crisis.

Informed sources revealed that the US authorities and their counterparts in the Bahamas are discussing the possibility of bringing the founder of the “FTX” platform to the United States of America to be questioned about the collapse of the cryptocurrency platform. According to Bloomberg, citing people familiar with the matter, talks between law enforcement officials in the two countries have intensified in recent days, with investigations into the role of “Sam Bankman Fried” in the collapse of the FTX platform. The agency noted that Sam Bankman-Fried, founder of the FTX platform, is cooperating with authorities in the Bahamas regarding their investigation into the collapse of the cryptocurrency exchange.

Leave a Reply

Your email address will not be published. Required fields are marked *