Why did FTX COLLAPSE??

By Vasantha November 16,2022 Metalnation.org Image Credit:-Google

FTX fell apart quickly, and there is still a lot to learn about its stunning collapse

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A run on deposits left his crypto exchange, FTX, with an $8 billion shortfall, forcing the firm to file for bankruptcy.

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What does FTX collapse mean for crypto?

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Customers of bankrupt cryptocurrency exchange FTX Trading could have to wait years to get their money back, while many may never recover the funds, experts said.

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FTX.US says it has taken industry-standard security measures to protect assets and customer information on the platform. Among those precautions is the option to have separate passwords for withdrawals.

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Last week's liquidity crisis has left a $6 billion hole in the exchange's balance sheet, forcing the company to initiate Chapter 11 bankruptcy proceedings on November 11

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FTX is a Bahamas based cryptocurrency exchange. FTX is incorporated in Antigua and Barbuda and headquartered in The Bahamas.

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The imploding cryptocurrency trading firm FTX is now short billions of dollars after experiencing the crypto equivalent of a bank run.

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The biggest VC losers include Paradigm, a cryptocurrency focused investor, and Sequoia Capital. These firms lost $278 million and $214 million, respectively.

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