FTX’s newly revealed $8 billion hole 🕳️ on the balance sheet appeared to be insurmountable even for Binance, which has backed out from the previously announced acquisition.
The drama will now be continuing in court.
Today FTX US and 130 (!) affiliate companies filed for bankruptcy under Chapter 11, which has its pros and cons:
✅ the company can stay in business and reorganize its assets,
❌ but users can still lose their funds,
❌ users can also have their personal data revealed in court, as it was the case with Celsius.
Losing privacy in the crypto environment can be more dangerous than when dealing with fiat. FTX’s 1.2 million users should be careful.
Sam Bankman-Fried resigned from his position of CEO, and the company will be led through the bankruptcy procedures by John J. Ray III, a person previously charged for insider trading.
FTX story is not over yet, and legal drama fans can expect a long story ahead 🍿