Cryptocurrencies fall again, posting losses of up to 5% due to FTX bankruptcy

Specifically, at 16:50. bitcoin It fell 3.77% and was selling for $16,901 (16,374 euros), ethereum fell 5.04% and traded at $1,255 (1,215 Euros).

These losses contrast with the gains these crypto assets recorded in the early hours of Friday. For example, at 10:30 am, bitcoin was trading at $17,348 (EUR 16,925), which is 3.97% higher, while ethereum was up 5.15% to trade at $1,277 (EUR 1,245).

cryptocurrency platform FTX decided to take advantage of the protection of Section 11 of the United States Bankruptcy Code in order toasset valuation and liquidation process for the benefit of interested parties, as reported by the company, whose founder and CEO, Samuel Bankman-Fried, has stepped down.

The platform said in a statement that the FTX Group process includes FTX US, as well as trading firm Alameda Research and a total of 130 subsidiaries.

FTX’s solvency was questioned after its rival, Binance, decided to abandon its intention to come to the rescue of the platform. after due diligence and before investigations are opened by government agencies in the United States.

Earlier, at a conference with investors, then-FTX CEO Sam Bankman-Fried estimated the gap on the platform at around $8,000 million (a similar figure in euros), including around $4,000 million. firm can maintain its solvency.

From digital asset custodian Onyze they stated: The situation in the market “negatively affects the trust in the ecosystem”.

“As we commented when the Celsius thing happened, the digital asset system has sprung up over the years and not all the projects launched have the same robustness and solvency, cases like this leaving a consequence. It’s a two-way street in the sense that they clean up the ecosystem so it doesn’t happen again in the future,” Onyze said. Enrique Palacios, director of regulatory compliance.