FTX files for bankruptcy with up to $50 bil. in liabilities

Cryptocurrency exchange FTX Trading has filed for bankruptcy protection, with total liabilities of up to 50 billion dollars.

FTX and about 130 affiliated firms applied for Chapter 11 proceedings in the United States on Friday. One of the companies is based in Japan.

Documents that FTX submitted to a court state it has liabilities ranging from 10 billion to 50 billion dollars.
The scale of the bankruptcy is the largest ever in the cryptocurrency sector. FTX has said on its website that it has more than a million customers.

In addition, the Wall Street Journal is reporting that about 370-million dollars' worth of crypto funds may have been illegally withdrawn.

The question now is whether FTX will be able to protect customers' assets and pay them back.

It has been exchanging cryptocurrencies around the globe. There is a concern that the exchange's complex financial transactions could trigger a chain-reaction of bankruptcies.

Source: https://www3.nhk.or.jp/nhkworld/en/news/20221114_13/