Recent events suggest that Ripple, a company with its headquarters in San Francisco, may take into account the assets of the defunct cryptocurrency exchange FTX. Different firms that were a part of the enormous portfolio of the FTX crypto empire are interested in the FTX-related enterprises.
Sam Bankman-Fried, the former CEO of FTX, allegedly sought money from various people, including Garlinghouse, when the exchange was on the point of ultimately collapsing, according to a recent research by Reuters. But in a recent interview, the CEO of Ripple hinted that the FTX exchange was a fraud. Garlinghouse stressed the need of the Bitcoin market expanding.
The San Francisco-based fintech company Ripple is reportedly interested in purchasing the assets of the shuttered cryptocurrency exchange FTX, despite past comments regarding FTX. CEO of Ripple Brad Garlinghouse said that he would buy FTX's commercial customer-focused activities and ownership stakes in other companies. After that, he would be able to strategically scale the company, which plans to maintain growing despite the challenging market. According to earlier developments, FTX declared bankruptcy under Chapter 11 on November 11 after failing to get a rescue from a number of investors.
Tron's Justin Sun Joins Ripple to Pursue FTX Assets
The founder of Tron, Justin Sun, is also interested in buying the holdings of the shuttered cryptocurrency exchange FTX. He expressed interest in saving the company when Binance said they were terminating the FTX acquisition agreement earlier. FTX Group is currently being discussed in the Bahamas by officials of Tron and the Huobi exchange, the controversial tycoon said, adding that his employees carefully reviewed every asset controlled by FTX.
One day before the struggling FTX exchange filed for bankruptcy, Tron agreed to set up a credit facility that would let holders of TRX, BTT, and a number of other tokens transfer their holdings off the platform. Sun also made it known that he was willing to provide FTX billions when the exchange's previous CEO Sam Bankman-Fried sorely needed more funding to stay afloat. Nevertheless, investors were reluctant to put their money at risk, making it impossible for the faltering firm to get a bailout. According to recently filed bankruptcy court documents, FTX currently owes its biggest creditors close to $3.1 billion.
Additionally, BitGo Supports FTX
Cryptocurrency custodian BitGo has also been authorized to look after the remaining funds at FTX. BitGo was chosen by acting CEO John Ray III to take control of the bitcoin exchange's assets throughout the bankruptcy process. Sam Bankman-Fried, the former CEO of FTX, received critical remarks from the co-founder of BitGo. The co-founder asserts that SBF engaged in financial fraud and that market structure, not cryptocurrency, was to blame for this issue. Trading, funding, and custody, in his opinion, should be handled differently.
Markets Being Negatively Impacted by FTX Saga
As of late, it appears that this state of "extreme fear," with a score of 22–23, has been constant for the past month. This sector of the index is marked by extreme fear as traders and major investors, often known as gain seekers, start buying Bitcoin in significant volumes.
BTC briefly fell beneath $15,800 a few days ago. The biggest deterrent that kept BTC away from the $20,000 zone was the recent catastrophe of the FTX exchange declaring bankruptcy and its affiliate trading company, Alameda Research, which it was seeking to bail out.
Recent events involving SBF and FTX have led to some businesses scaling their activities. Genesis, a well-known cryptocurrency exchange, is also looking for investors who are willing to redeem their shares in light of its recent statement that suggested that the Firm may soon file for bankruptcy. Due to SBF's actions and deeds, other exchanges have also sustained substantial losses. The public's mistrust of cryptocurrency exchanges has greatly increased as a result of this scam. Users began transferring substantial sums of money to cold wallets. Despite the market crisis, many investors remained enthusiastic about cryptocurrencies, therefore signs of recovery have been emerging.