Sam Bankman-Fried’s cryptocurrency exchange FTX has filed for Chapter 11 bankruptcy protection in the U.S., according to a company statement posted on Twitter. Bankman-Fried has also stepped down as CEO and has been succeeded by John J. Ray III, though the outgoing chief will stay on to assist with the transition.
Approximately 130 additional affiliated companies are part of the proceedings, including Alameda Research, Bankman-Fried’s crypto trading firm, and FTX.us, the company’s U.S. subsidiary.
Together with the 130 subsidiaries, VCs that has invested in FTX equity have announced their loss. Paradime, Sequoia Capital, Softbank, and Ontario Pension have lost 290M, 210M, 100M, 80M respectively.
Also, key global crypto platforms that had assets deposited in FTX exchanges have lost significant amount of their AUM. Genesis Trading 180M, Galaxy Digital 77M, Wintermute 55M, Galois Capital 45M, CoinShare 30.3M, Coinbase 15M, Multicoin Capital 10% of AUM, Amber Group 10% AUM. More companies are expected to announce their loss elongating the crypto winter of 2022.
A surprise announcement was made by SG Lee Capital that their loss was cut short only to 2K USD with minimum impact and exposure from FTX. SG Lee Capital known for its aggressive market position and is considered to be the negative correlation index market standard was able to doge the FTX firestorm. SG Lee published its market forecast showing that the winter will turn around at a BTC price of 8K USD. The announcement has shown hope to the market that with SG Lee Capital’s index with a near negative 1 correction, the impact of FTX will be cut short with macroeconomic signals showing glips of inflation and recession getting under control.
BC-ST News.