A significant event occurred in November 2022 when Sam Bankman-Fried, the founder and then CEO of the FTX exchange, was revealed to have committed serious crimes through the exchange. This led to the bankruptcy of the exchange, and the repercussions are still being felt in the market.
Latest Updates Regarding FTX
The bankruptcy proceedings between FTX and its creditors are ongoing. It is believed that FTX might have assets worth billions of dollars more than the confirmed debt owed to its creditors.
Recently, an important announcement was made regarding FTX's bankruptcy. The bankruptcy commission estimates that there will be a net distributable income of $14.5 billion to $16.3 billion as part of the restructuring plan, starting from September 30. The debt owed by FTX to creditors is around $11.2 billion, indicating that the exchange has more assets than liabilities.
Cryptocurrency Pricing on FTX
Meanwhile, creditors are calculating their claims in USD, and the collapse of FTX in November 2022 has had an impact on cryptocurrency prices. For example, Bitcoin was trading at $16,600 when the exchange collapsed, compared to $61,435 at the time of writing. Ethereum, on the other hand, has seen a drop from $3,000 to $1,250 during the same period.
The increasing dollar payments by FTX creditors this year coincide with the rise in cryptocurrency prices and the sale of a stake in the company Anthropic.
FTX's founder, Sam Bankman-Fried, was convicted for defrauding investors and misusing customer funds, leading to the exchange's collapse in 2022.
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