FTX, the second largest exchange in the currency circle, has declared bankruptcy. At the beginning of the year, it was valued at about $32 billion. The founder and CEO also resigned.

According to the public statement, more than 130 affiliated companies belonging to FTX Group have filed for bankruptcy.

Before, the average daily trading volume of FTX was as high as $14 billion. However, the highest single-day trading volume exceeds $60 billion.

However, all that changed after a tweet from the founder of Binance.

On November 6, Changpeng Zhao tweeted that he would sell all FTT tokens on Binance’s books. This sentence directly triggered investors’ run-on withdrawal of funds against FTX.

The reason is that there is a lack of transparency between FTX and its affiliate Alameda Research. As soon as FTX issues FTT, it notifies Alameda Research in advance so that it can be purchased at a low price.

In the first 24 hours, $600 million was withdrawn from FTX. As of November 9, FTX has suffered $6 billion in losses.

FTX explained that it is possible to process customer withdrawals. However, there are too many people withdrawing their funds. Furthermore, no one believed what FTX said. As a result, FTX announced the suspension of the withdrawal function.

Binance initially agreed to the acquisition. But it gave up because of financial black holes and too much regulatory risk.

FTX, desperate, can only declare bankruptcy. Assets and liabilities were between $10 billion and $50 billion, and the number of creditors exceeded 100,000.

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