URGENT: FTX Crypto Exchange Declares Insolvency

A significant event is that FTX has formally filed bankruptcy papers.

As liquidity dried up, users requested withdrawals, and rival exchange Binance tore up its non-binding agreement to buy the company, FTX plummeted from a $32 billion valuation to bankruptcy in a matter of days.

Over 130 additional affiliated companies, including Alameda Research, are a part of the voluntary procedures. The release does not, however, mention FTX Digital Markets, FTX Australia, FTX Express Pay, or LedgerX (which operates as FTX US Derivatives).

Upon hearing of the bankruptcy, the price of bitcoin dropped $1000 instantly, falling to $16,500 in a matter of minutes.

The native token of the FTX exchange, FTT, has decreased in value in response to the news by over 27% in the last hour and by 95% over the last week. At the time of writing, it is now trading for $2.3 per share.