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Binance will abandon its deal to rescue Sam Bankman-Fried’s FTX cryptocurrency exchange, citing concerns about its business practices and investigations by Let’s dive into the FTX disaster, its implications, and whether Binance faces similar risks. The FTX Collapse: A Quick Recap. FTX, once a $32 billion titan of the crypto News of FTX’s insolvency has hit the platform and the wider crypto industry hard. Customers withdrew about $6 billion from FTX in the 72 hours before it paused Like other crypto currency companies before it, FTX paused withdrawals on Tuesday, shortly before announcing the potential strategic transaction with Binance. However Over the past week, the founders of two of the largest cryptocurrency exchanges – Binance and FTX – have had a public Twitter spat that triggered the collapse of “As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT),” Zhao said in a thread of tweets The FTX estate has not yet filed a response to Binance’s motion. FTX plans to pay back more than $5 billion to creditors as it operates through bankruptcy, having filed To add fuel to fire, FTX halted all withdrawals and temporarily paused deposits on the exchange. SBF also confirmed that FTX needs $8 billion in emergency funds to cover all shortfalls. In short, SBF and FTX are now in deep trouble and the exchange could go

What Happens to FTX After Binance's Withdrawal? Navigating the Crypto Collapse

The crypto world is reeling from the FTX disaster. Binance will abandon its deal to rescue Sam Bankman-Fried’s FTX cryptocurrency exchange, citing concerns about its business practices and investigations. This has left many wondering: What's next for FTX?

The FTX Collapse: A Quick Recap

Let’s dive into the FTX disaster, its implications, and whether Binance faces similar risks. FTX, once a $32 billion titan of the crypto world, has crumbled. The situation escalated quickly, fueled by a public dispute. Over the past week, the founders of two of the largest cryptocurrency exchanges – Binance and FTX – have had a public Twitter spat that triggered the collapse.

Halted Withdrawals and Emergency Funds

Things took a turn for the worse when To add fuel to fire, FTX halted all withdrawals and temporarily paused deposits on the exchange. SBF also confirmed that FTX needs $8 billion in emergency funds to cover all shortfalls. In short, SBF and FTX are now in deep trouble and the exchange could go under.

Like other crypto currency companies before it, FTX paused withdrawals on Tuesday, shortly before announcing the potential strategic transaction with Binance. However... this transaction ultimately failed. News of FTX’s insolvency has hit the platform and the wider crypto industry hard. Customers withdrew about $6 billion from FTX in the 72 hours before it paused withdrawals, further exacerbating the crisis.

Bankruptcy and Repayment Plans

Facing immense pressure, FTX filed for bankruptcy protection. The big question now is: how will FTX manage its obligations to creditors? FTX plans to pay back more than $5 billion to creditors as it operates through bankruptcy, having filed for Chapter 11.

Binance's Perspective and Previous Involvement

Binance's decision to withdraw from the rescue deal underscores the severity of FTX's problems. While Binance initially held a stake in FTX, they later divested. “As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT),” Zhao said in a thread of tweets. This exit now looks prescient, shielding Binance from further exposure. The situation continues to unfold. The FTX estate has not yet filed a response to Binance’s motion.

What the Future Holds for FTX

The future of FTX remains uncertain. While bankruptcy protection offers a path for restructuring and potential repayment of debts, the damage to its reputation and the potential legal ramifications for its founders are significant. The collapse serves as a stark reminder of the volatility and risks inherent in the cryptocurrency market.

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