Catch the latest updates on FTX with our FTX news which is a dedicated space for everything related to FTX. Founded in 2018 by Massachusetts Institute of Technology (MIT) graduate and former Jane Street Capital international exchange-traded funds (ETFs) trader Sam Bankman-Fried, FTX Exchange was leading centralized cryptocurrency exchange and third-largest in 2021.

FTX provided a variety of trading products, such as derivatives, options, volatility goods, and leveraged tokens. It also offered spot markets in over 300 cryptocurrency trading pairs, including BTC/USDT, ETH/USDT, XRP/USDT, and FTT/USDT, its native token. However, FTX began its steep fall in early November 2022.

The Exchange filed for Chapter 11 bankruptcy protection on November 11, 2022, and its founder, Bankman-Fried, resigned. According to John J. Ray III, the new court-appointed chief executive of FTX, the collapse of FTX is attributed to a "complete failure of corporate control." Founder, Bankman got indicted by the US District Court in Manhattan on eight counts that comprise securities fraud and money laundering. 

Since the fall of the FTX exchange, a series of trials and investigations have been happening, and on January 3, 2023, Bankman-Fried pleaded non-guilty to all charges in a New York federal court. The next hearing has been set for October 2, 2023. 

FTX News

The collapsed cryptocurrency exchange FTX is likely set to resume operations again in the future, legal teams of the debtors revealed.



These remarks came following statements of FTX lawyers made during a hearing in the United States Bankruptcy Court for the District of Delaware as they said FTX had recovered $7.3 billion in liquid assets. An investigation into all FTX assets is ongoing and found that the four FTX company silos have about $4.8 billion in scheduled assets, according to a March hearing from the debtors, <a href="https://cointelegraph.com/news/ftx-has-recovered-7-3b-in-assets-will-consider-rebooting-exchange-in-q2-2023" data-type="URL" data-id="https://cointelegraph.com/news/ftx-has-recovered-7-3b-in-assets-will-consider-rebooting-exchange-in-q2-2023" target="_blank" rel="noreferrer noopener">Cointelegraph reported</a>.



The legal team uncovered that the collapsed crypto exchange is considered to be on the track again in the second quarter of 2024, statements which come in line with what FTX CEO John Ray said in his interview in January about his openness to restarting FTX.



Because of the lawyers&#8217; positive remarks, the price of the FTX token increased from $1.32 to $2.80, a surge of more than 112%.



Earlier in January, FTX attorney Andy Dietderich said the crypto exchange has recovered $5 billion in cash and liquid cryptocurrencies, which could be used to repay customers and investors after being sold.



In December, Sam Bankman-Fried was arrested in the Bahamas at the request of the US government. SBF, 30, faces criminal charges related to the bankruptcy of the crypto platform in November. He faces charges of money laundering, wire fraud, wire fraud conspiracy, securities fraud, and securities fraud conspiracy. He will go for trial in October as he is remaining under house arrest at his parents&#8217; house in California.



Several former executives from FTX and Alameda Research are facing federal charges related to the companies&#8217; failures, which resulted in tens of billions of dollars of losses to customers.



FTX Europe AG, along with 133 other subsidiaries, was part of FTX’s Chapter 11 filing in the US bankruptcy court in November 2022.

Crypto

FTX Recovered $7.3 Bln in Assets

The troubled crypto exchange FTX has recovered $5 billion in cash and liquid cryptocurrencies, which could be used to repay customers and investors after being sold, FTX attorney Andy Dietderich said.



Speaking to a Delaware bankruptcy court on Wednesday, Dietderich noted that the exchange is still working to rebuild transaction history. These recovered assets are not included in the assets, which the Securities Commission of the Bahamas announced to seize FTX-connected assets, worth around $450 million, as part of their ongoing prosecution of FTX co-founder Sam Bankman-Fried.



Dietderich also mentioned that FTX eyes selling non-strategic investments worth $4.6 billion, like FTX Japan, FTX Europe, LedgerX, and Embed. These companies are independent of FTX with separate accounts. Presiding judge John Dorsey granted FTX&#8217;s request to sell related businesses like FTX Europe. Dietderich pointed out that there is no sale reached yet and the company is still exploring bids.



For his part, FTX attorney Adam Landis told the court that the recovered $5 billion does not include illiquid cryptocurrencies, mentioning that the company&#8217;s holdings are so big and selling them would negatively affect the crypto market.



Earlier, FTX’s current CEO John J. Ray said at least $8 billion of customer assets were unaccounted for in the “worst” case of corporate control he’d ever seen, according to CNBC.



In December, Bank-man Fried &nbsp;was arrested in the Bahamas at the request of the US government. SBF, 30, faces criminal charges related to the bankruptcy of the crypto platform in November. He faces charges of money laundering, wire fraud, wire fraud conspiracy, securities fraud, and securities fraud conspiracy.

FTX Recovers Cash, Liquid Crypto Worth $5 Bln

Bankrupt crypto lender BlockFi Inc. repaid $15 million to an investor to settle for a threatened lawsuit over the company&#8217;s cratering equity value in the summer of 2022, BlockFi attorneys said at a bankruptcy court.



BlockFi attorney Joshua Sussberg said at a bankruptcy court hearing in Trenton, New Jersey, that the investor, identified as &#8220;Counterparty A&#8221; claimed that he had bought equity shares that were issued as part of executive compensation packages.



These shares were valued at $6 billion to $8 billion when the company bought them in January 2022, but their value declined due to the collapse of FTX and the bearish crypto market. Therefore Counterparty A threatened to sue BlockFi and its executives, accusing them of being non-transparent about the disturbances in the crypto market, Sussberg added.



BlockFi believed that Counterparty A&#8217;s allegations were specious, but it had reached a confidential agreement with him, repaying him $15 million on August 23. In this settlement, BlockFi founder Zac Prince made the largest payment with $6.144 million.



The New Jersey-based crypto lender filed for bankruptcy protection on November 28, following the FTX collapse and laid off 20% of its employees after its value was down.



Moreover, BlockFi said in a Twitter thread that it will file both its Schedules of Assets and Liabilities and its Statement of Financial Affairs with the court on Wednesday to show its commitment to maximizing value for all clients and other stakeholders by moving forward in its chapter 11 cases expeditiously and transparently.

BlockFi

BlockFi Repaid $15 Mln to Investor to Settle Crypto Lawsuit

Sam Bankman-Fried (SBF), the former founder of the collapsed FTX, was arrested in the Bahamas at the request of the US government. SBF, 30, faces criminal charges related to the bankruptcy of the crypto platform in November.



The announcement was made by Bahamian attorney-general Ryan Pinder, who said SBF is remanded in custody and likely to face extradition from the US.



Meanwhile, US Attorney for the Southern District of New York Damian Williams confirmed the detention in a tweet, saying: &#8220;Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the U.S. Government, based on a sealed indictment filed by the SDNY. We expect to move to unseal the indictment in the morning and will have more to say at that time.&#8221;



The US Securities and Exchange Commission filed on Tuesday a civil complaint against SBF that he was involved in a “scheme to defraud equity investors in FTX.” According to the filing, the former CEO of FTX raised $1.8 billion from investors as he diverted billions of dollars of the trading platform’s customer funds for his own personal benefit and to help grow his crypto empire.



According to the New York Times, SBF faces charges of money laundering, wire fraud, wire fraud conspiracy, securities fraud, and securities fraud conspiracy.



Earlier, a document, which was a part of FTX’s filing process to the United States bankruptcy court for the district of Delaware, revealed that FTX Trading LTD owes more than $3 billion to its top 50 creditors.



According to the document, FTX owes more than $226 million to its top creditor, while other sums of money are ranging between $21 million and $203 million.



Information about the identity of the creditors, or their addresses, telephone numbers, or e-mail addresses is unknown. Investigations are underway to get any of this information.



FTX, once valued at $32 billion, collapsed in a matter of days after the CEO of Binance, a rival firm, said his exchange would liquidate its FTT tokens, a matter that led to the plunge of FTT value. FTX filed for Chapter 11 bankruptcy on November 11.

Former FTX CEO

FTX Former CEO SBF Arrested in Bahamas

Binance CEO Changpeng Zhao denounced being portrayed in addition to other guys by FTX founder Sam Bankman-Fried (SBF) as bad guys aftermath of the collapse of FTX in November.



<a rel="noreferrer noopener" href="https://twitter.com/cz_binance/status/1600083613780824064" target="_blank">In a Twitter thread</a>, Zhao explained many matters related to the crypto industry, wanting to correct a number of “wrong narratives”, he witnessed recently. Zhao described Bankman-Fried, also known by his initials SBF, as one of the greatest fraudsters in history and a master manipulator when it comes to media and key opinion leaders.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">A list of wrong narratives I have seen recently.&mdash; CZ 🔶 Binance (@cz_binance) <a href="https://twitter.com/cz_binance/status/1600083611667075074?ref_src=twsrc%5Etfw">December 6, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



&#8220;SBF perpetuated a narrative painting me and other people as the ‘bad guys.’ It was critical in maintaining the fantasy that he was a ‘hero.’ SBF is one of the greatest fraudsters in history, he is also a master manipulator when it comes to media and key opinion leaders,&#8221; Zhao tweeted. He added that SBF has good intentions but he committed mistakes.



The second wrong narrative the CEO of Binance dismissed is that FTX was collapsed by a third party, asserting that FTX has killed itself by its mistakes, claiming that it stole billions of dollars of user funds.



&#8220;No healthy business can be destroyed by a tweet,&#8221; Zhao tweeted, recalling that a Bloomberg article on FTX on November 18 was the reason for FTX collapse that cited Caroline Ellison&#8217;s tweet on November 6 on Binance and Alameda.



The third narrative which Zhao countered is that he wants to be the savior of the crypto industry, saying the crypto doesn’t need saving. crypto is fine.



&#8220;Crypto doesn’t need saving. Crypto is fine. It’s the beauty of decentralization. We are just part of it. We want to help other good projects that may be in a cash crunch because of recent events. It’s in our collective best interest,&#8221; he further tweeted.



FTX, once valued at $32 billion, collapsed in a matter of days after the CEO of Binance said his exchange would liquidate its FTT tokens, a matter that led to the plunge of FTT value. FTX filed for Chapter 11 bankruptcy on November 11.

Binance CEO

Blockchain

Binance CEO Describes FTX’s SBF As “One of The Greatest Fraudsters”

BlockFi, a US cryptocurrency platform, filed on Monday for Chapter 11 bankruptcy protection along with eight affiliates in a New Jersey court, a new casualty aftermath of the collapse of FTX earlier this month, <a href="https://www.cnbc.com/2022/11/28/blockfi-files-for-bankruptcy-as-ftx-fallout-spreads.html" target="_blank" rel="noreferrer noopener">according to CNBC</a>.



In the filing, the New Jersey-based company said it owes money to about 100,000 lenders in addition to possessing assets and liabilities ranging between one billion to $10 billion. The bankruptcy filing showed that BlockFi&#8217;s largest creditor is Ankura Trust, which is owed $729 million.



According to the filing, FTX, which filed for Chapter 11 bankruptcy, was the second-largest creditor to BlockFi with $275 million owed on a loan extended earlier this year. Valar Ventures, a Peter Thiel-linked venture capital fund, possess 19% of BlockFi equity shares.



In a blog, BlockFi attributed its move to the shocking events surrounding FTX and associated corporate entities over the past period, adding the filing for bankruptcy will enable BlockFi to stabilize the business and give the opportunity &#8220;to consummate a reorganization plan that maximizes value for all stakeholders.&#8221;



BlockFi has a subsidiary in the Bahamas, like FTX, which also moved for bankruptcy with the American one. According to PitchBook, BlockFi was last valued at $4.8 billion.



In a statement, Mark Renzi of Berkeley Research Group, BlockFi&#8217;s financial advisor, said: &#8220;BlockFi looks forward to a transparent process that achieves the best outcome for all clients and other stakeholders.&#8221;



Earlier, BlockFi paused withdrawals from its platform, saying it had &#8220;significant exposure&#8221; to FTX and its associated entities, including &#8220;obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US&#8221;



FTX, once valued at $32 billion, collapsed in a matter of days after the CEO of Binance, a rival firm, said his exchange would liquidate its FTT tokens, a matter that led to the plunge of FTT value. FTX filed for Chapter 11 bankruptcy on November 11.

BlockFi Files for Chapter 11 Bankruptcy Following FTX

FTX Trading LTD owes more than $3 billion to its top 50 creditors, a document revealed.



The document was a part of FTX&#8217;s filing process to the United States bankruptcy court for the district of Delaware about Chapter 11 bankruptcy proceedings, <a href="https://cointelegraph.com/news/ftx-owes-over-3-billion-to-its-50-biggest-creditors-bankruptcy-filing" target="_blank" rel="noreferrer noopener">according to Coin Telegraph</a>.



According to the document, FTX owes more than $226 million to its top creditor, while other sums of money are ranging between $21 million and $203 million.



Information about the identity of the creditors, or their addresses, telephone numbers, or e-mail addresses is unknown. Investigations are underway to get any of this information.



&#8220;The Top 50 List is based on the Debtors’ currently available creditor information, including customer information that was able to be viewed but is not otherwise accessible at this time. The Debtors’ investigation continues regarding the amounts listed, including payments that may have been made but are not yet reflected on the Debtors’ books and records. The Debtors are also working to obtain full access to customer data,&#8221; the document said.



The filings following the initial announcement of FTX&#8217;s bankruptcy claimed that FTX has more than one million creditors.



FTX, once valued at $32 billion, collapsed in a matter of days after the CEO of Binance, a rival firm, said his exchange would liquidate its FTT tokens, a matter that led to the plunge of FTT value. FTX filed for Chapter 11 bankruptcy on November 11.



Earlier, Ripple CEO Brad Garlinghouse voiced his interest in purchasing companies owned by FTX after being collapsed with a focus on businesses that served business customers. In addition, Ripple eyes FTX employees who are involved in compliance, finance, or business ethics.

FTX Owes over $3 Bln to Top 50 Creditors Only

Ripple Labs, an American technology company, voiced its interest in purchasing companies owned by FTX after being collapsed.



This announcement was made by Ripple CEO Brad Garlinghouse on the fringe of Ripple’s Swell conference, held in London on November 16 and 17, according to Coin Telegraph.



Garlinghouse told the Sunday Times that before the bankruptcy of <a href="https://upyo.com/en/news/tags/ftx">FTX</a>, former FTX CEO Sam Bankman-Fried asked Garlinghouse in a phone call to buy some of the FTX-owned businesses that served business customers.



“Part of my conversation was if he needs liquidity, maybe there are businesses that he has bought or he has that we would want to own […] Would we have bought some of those from him? I definitely think that was on the table,” Garlinghouse said.



Although he admitted that FTX filing for bankruptcy would make any deal different now, Ripple is still interested in buying some of FTX&#8217;s assets. It is worth noting that FTX had about 100 affiliated companies.



Ripple is also interested in hiring FTX employees. In a tweet, Ripple’s Chief Technology Officer David Schwartz said his company opens its doors to FTX employees who are not involved in compliance, finance, or business ethics.



Also, it is worth mentioning that Ripple XRP is one of 10 cryptocurrencies that had not been impacted by the FTX collapse, unlike Bitcoin and Ethereum.



XRP (XRP) is a digital asset with a market capitalization of $19.9B. XRP comes in seventh place in the global cryptocurrency rating with an average daily trading volume of $683.7 million. Currently, it is priced at $0.37.



From November 11 to 14, three crypto firms announced massive losses due to the FTX collapse. These firms are Galois Capital, New Huo Technology, and Nestcoin. The three firms’ losses are estimated at more than $68.1 million, according to Cointelegraph.

Ripple

Ripple Interested in Purchasing FTX-Affiliated Companies

The collapse of the FTX crypto exchange still has continuous ramifications with reports about the stuckness of large funds of three crypto funds on FTX.



From November 11 to 14, three crypto firms announced massive losses due to the FTX collapse. These firms are Galois Capital, New Huo Technology, and Nestcoin. The three firms&#8217; losses are estimated at more than $68.1 million, <a href="https://cointelegraph.com/news/ftx-bankruptcy-freezes-millions-worth-of-crypto-company-funds" target="_blank" rel="noreferrer noopener">according to Cointelegraph</a>. 



On November 11, Galois Capital, a crypto hedge fund, revealed that it has a remarkable fund stuck on FTX. The Financial Times on the next day reported that about $50 million of Galois Capital&#8217;s assets are stuck on FTX.



On November 14, New Huo Technology&#8217;s subsidiary, the Hong Kong-headquartered digital asset platform Hbit Limited, failed to withdraw cryptocurrency worth $18.1 million from FTX that suspended the withdrawal processes.



It is worth mentioning that $13.2 million of the stuck amount are digital assets owned by Hbit users, while the remaining $4.9 million belong to Hbit. However, the firm’s board said its stuck assets on FTX do not affect New Huo Technology&#8217;s normal business operations because Hbit is legally separated from the rest of its companies.



New Huo Technology reached an unsecured non-interest-bearing loan agreement worth $14 million with Leon Lin, the founder and ex-CEO of the Huobi exchange, to cover client asset liability. Till now, the company does not know whether it could withdraw its stuck assets or not from FTX.



Moreover, Nestcoin, a Nigerian Web 3.0 startup, announced its failure to withdraw its stuck assets on FTX due to its bankruptcy, Nestcoin CEO Yele Bademosi tweeted on November 14, saying the company lay off some employees because the one-year-old start-up has no funds to pay them.



The collapse of Sam Bankman-Fried’s crypto empire, FTX, which has already filed for bankruptcy has affected a large number of people and companies which have seen losses of amounts of cash and digital assets.



It has also negatively impacted the cryptocurrency market, as the price of cryptocurrencies plummeted at the news of the collapse. Bitcoin fell below $20,000 since the beginning of this month to reach the $16,000 mark. Ethereum dropped under the $1,500 mark to $1,200.



The prices of crypto are expected to end up plunging below $10,000 before the end of the year, due to concerns from investors.

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