BREAKING UPDATE: Cryptocurrency platform FTX goes bankrupt in US as boss resigns

FOLLOWING the news that Binance would not be going through with its rescue of the FTX Cryptocurrency Exchange, FTX has announced its bankruptcy and its boss has resigned.

UPDATE 3.59 pm (November 11) – After Binance pulled out of a deal to rescue FTX, the company has been forced to announce it is bankrupt in the US.

A statement from FTX said that the cryptocurrency exchange FTX has filed for Chapter 11 bankruptcy in the U.S.

CEO Bankman-Fried has also stepped down and has been replaced by John J. Ray III, who said:

“The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximise recoveries for stakeholders.

“The FTX Group has valuable assets that can only be effectively administered in an organized, joint process. I want to ensure every employee, customer, creditor, contract party, stockholder, investor, governmental authority and other stakeholder that we are going to conduct this effort with diligence, thoroughness and transparency,” continued Ray.

Press Release pic.twitter.com/rgxq3QSBqm

— FTX (@FTX_Official) November 11, 2022

“We are so sorry that it has come to this,” the team said in a letter, adding: “To the extent that the leadership of FTX may have engaged in deception or dishonesty, we condemn that behaviour in the strongest possible terms. We believe that being a good actor in the world means striving to act with honesty and integrity.”

UPDATE 12.11 pm (November 10) – According to the FTX website on Thursday, November 10, all onboarding of new clients has been suspended, 12 hours after Binance backs out of its planned rescue of the crypto exchange.

Following the news that Binance would not be going through with its rescue of the FTX Cryptocurrency Exchange, onboarded at FTX has been suspended.

On the website, a message read: “FTX is currently unable to process withdrawals. We strongly advise against depositing.

“All onboarding of new clients has been suspended until further notice.”

ORIGINAL 10.21 pm (November 9) – Big news in the cryptocurrency world on Wednesday, November 9 as Binance backs out of its planned rescue of FTX – a move which leaves the crypto exchange on the brink of collapse.

Binance will not be going through with its rescue of the FTX Cryptocurrency Exchange, the blockchain ecosystem said.

“As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com,” it said.

“In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help.”

It added: “Every time a major player in an industry fails, retail consumers will suffer. We have seen over the last several years that the crypto ecosystem is becoming more resilient and we believe in time that outliers that misuse user funds will be weeded out by the free market.

“As regulatory frameworks are developed and as the industry continues to evolve toward greater decentralisation, the ecosystem will grow stronger.”

People reacted to the news on social media.

“Wow. It’s actually over 🙁 Sorry to everyone who’s affected,” one person wrote.

https://twitter.com/byzgeneral/status/1590453331109244929?s=61&t=TIm1mxRX5a3vIUds992YUA

Another person wrote: “Hard to overstate what a bad moment this is for the crypto industry. Absolutely no silver lining here. Bitcoin down 20% in a couple of days. 3rd biggest exchange gone.”

Hard to overstate what a bad moment this is for the crypto industry.

Absolutely no silver lining here. Bitcoin down 20% in a couple of days days. 3rd biggest exchange gone. https://t.co/diU8enMd6P

— kadhim (＾ｰ^)ノ (@kadhim) November 9, 2022

While another said: “Worst case scenario for FTX customers appears to be confirmed 😔”

Worst case scenario for FTX customers appears to be confirmed 😔 https://t.co/tdathnnOvo

— Alistair Milne (@alistairmilne) November 9, 2022

“Seemed like it was coming. Incredibly sad for those users affected. I can’t imagine your feelings right now. The ramifications of this event push the industry back several steps and it will be a long time before confidence is anyway restored. A different world will emerge…” another Twitter user wrote.

They added: “I hope this is one with benefits although the negatives of this outcome are huge. Existing crypto users will leave the space. Investment will fall. Retail will stay away. Regulations will be painful. It’s going to be nasty.”

I hope this is one with benefits although the negatives of this outcome are huge.

Existing crypto users will leave the space.

Investment will fall.

Retail will stay away.

Regulations will be painful.

It’s going to be nasty.

— Cold Blooded Shiller (@ColdBloodShill) November 9, 2022

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