After the information that the collapsed exchange FTX owes its creditors over USD 3 billion, investors began to fear a domino effect in the cryptocurrency industry.
Monday's trading on the bitcoin market ended with a deepening of the two-year low. The most popular cryptocurrency fell by another 5%, falling below 16,000. hole. The return of the sale was triggered by information about the giant liabilities of the failed FTX digital asset exchange. According to documents filed with the court, FTX owes its 50 largest creditors a total of $3.1 billion. The size of these commitments fuels fears that a wave of defaults will spread across the cryptocurrency industry.
Will cryptocurrencies bounce back?
As reported by Bloomberg, the brokerage company Genesis, whose needs amount to at least a billion dollars, admits to problems with raising capital. If the search for capital fails, it will be forced to declare insolvency. Cryptocurrency lender BlockFi is already preparing a bankruptcy petition.
FTX owes $3.1 billion to creditors
Cryptocurrency exchange FTX revealed in a document filed with the court that it owes 50 creditors a total of $3.1 billion. However, the names of these creditors are confidential. Their exclusion from publication was requested by the liquidator of FTX, who had previously been the liquidator of Enron.
“The issues surrounding the FTX case are a stark reminder of the need for a real regulatory framework for cryptocurrencies,” Christian Catalini, founder of the Cryptoeconomics Lab at MIT Sloan Business School, told Bloomberg TV.
As industry representatives fear, this may not be the end of the sale yet. According to Bobby Lee, founder of Ballet Global, if the wave of bankruptcies continues, bitcoin could go down to $10,000. hole. However, billionaire investor Bill Ackman admitted on Twitter that cryptocurrencies account for almost 2% of the total. assets of his funds, and he views the industry's overall outlook positively. According to the founder of Pershing Square Capital Management, their potential social impact may be comparable to the invention of the telephone or the Internet.