#FTXrepayment , a cryptocurrency exchange platform, filed for bankruptcy on November 14, 2022. The company ran into financial trouble and was hacked, resulting in multi-million dollar losses for its customers.
Cause of bankruptcy
On November 8, FTX prevented customers from withdrawing money from the platform.
FTX was unable to pay an $8 billion breach.
The company was hacked for over $600 million on November 12, a day after filing for bankruptcy.
Aftermath
FTX's bankruptcy had an impact on the cryptocurrency world, causing uncertainty and fear in the markets.
The price of Bitcoin and Ethereum fell after FTX collapsed.
Responsibilities
Sam Bankman-Fried, the founder and CEO of FTX, apologized and announced his resignation.
Bankman-Fried was sentenced to 25 years in prison in the United States.
Bankruptcy Objective
FTX filed for Chapter 11 bankruptcy in the United States to "begin an orderly process to review and monetize assets for the benefit of all stakeholders."