Cryptos Plunge As FTX Files For Bankruptcy; CEO Sam Bankman Quits

cryptocurrency oct22 11nov22 lt

Crypto markets plunged to $839 billion following announcement that the FTX Group of companies was commencing voluntary Chapter 11 proceedings in the United States. Sam Bankman-Fried has resigned his role as CEO and John. J. Ray has been appointed in his place.

Developments linked to the FTX debacle continued to dominate headlines in crypto world amidst reports that the beleaguered exchange was looking at close to $9 billion in rescue funds. The Securities Commission of The Bahamas had also reported that it has frozen the assets of FTX.

In a related development, BlockFi, a New Jersey-based exchange had said it was pausing withdrawals amidst uncertainty surrounding the fate of FTX, FTX US, and Alameda, exacerbating anxiety over the risk of contagion from the FTX episode.

FTX had earlier announced that it had reached an agreement with Tron to establish a special facility to allow holders of TRX, BTT, JST, SUN, and HT to swap assets from FTX 1:1 to external wallets.

FTX Token (FTT) declined 19 percent in the past 24 hours and 89 percent in the past week to trade at $2.85. It had earlier oscillated between $4.20 and $2.57 in a 24-hour span. Market cap of the FTT token dropped to $380 million, versus $3.5 billion at the end of October 2022.

Bitcoin traded between $18,054 and $16,543 in the past 24 hours. Bitcoin is currently trading at $16,959, down 4.2 percent on an overnight basis.

Ethereum is trading at $1,260, down 5 percent in the past 24 hours. Ether ranged between $1,341 and $1,211 in the past 24 hours.

Among the stablecoins, top ranked Tether traded between $0.999 and $0.9963 in the past 24 hours. USD Coin (USDC) traded between $1 and $0.9996 whereas Binance USD (BUSD) traded at the $1 level in the past 24 hours.

40th ranked Chain (XCN) is the biggest gainer in the past 24 hours with a 14 percent rally.

50th ranked Huobi Token (HT) and 78th ranked Nexo (NEXO) are trading with overnight losses of more than 13 percent.

Overall crypto market cap is currently at $860 billion, down 2.6 percent on an overnight basis.

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