Beautiful Virgin Islands


Bitcoin has crashed on fears of the potential bankruptcy of the FTX crypto exchange

Bitcoin has crashed on fears of the potential bankruptcy of the FTX crypto exchange

The world’s largest cryptocurrency by market capitalization, Bitcoin, has dropped to its lowest level in nearly two years on news of the potential bankruptcy of FTX, a major crypto exchange.

Bitcoin slid 12% on Wednesday to under $16,000 per coin, its lowest since November 2020, according to trading data. It regained some of the losses in early trading on Thursday but was still down over 8% for the day at $16,665 at around 08:00 GMT.

Other major cryptocurrencies were also trading in the red, traditionally following Bitcoin’s market movements.

The drop in crypto prices came after news of the potential collapse of the popular crypto exchange FTX. After it suffered a liquidity crunch, Binance, its rival, and the world’s largest crypto trading platform, agreed to rescue FTX by taking over the business. However, late on Wednesday Binance announced it will not go through with the deal, citing concerns over FTX’s business practices and US probes into the exchange.

As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com,” a Binance spokesperson told CoinDesk, adding that FTX's issues were “beyond our control or ability to help.

The FTX token, the native cryptocurrency of the trading platform, lost nearly 40% of its value following Binance’s statement and was down over 93% since news of the company’s troubles first broke earlier this week. CEO Sam Bankman-Fried has lost his billionaire status amid the crisis, with his estimated personal wealth plunging nearly 94% to $991.5 million in one day.

FTX has warned it’s facing an $8 billion shortfall and will go bankrupt without a rescue plan. This could further diminish investors’ trust in the crypto industry, already jeopardized by the bankruptcies of Celsius, a crypto lending company, and the Three Arrows Capital hedge fund, as well as the collapse of the Terra blockchain ecosystem.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Political Shifts in France, Legal Battles in the UK, and Public Protests in Israel
UK's Richest Family Convicted for Exploiting Servants
Hollande Declares End to Macron’s Political Ascendancy
Hindujas Appeal Swiss Court's Human Trafficking Verdict
Prince William Celebrates Birthday at Taylor Swift Concert
Singapore to Implement Screen Time Regulations for Children
Hello and welcome back. Here we are with your latest news update from around the world.
Hello and welcome back. Here are today's top stories from around the world, you don't want to miss:
UK PM Sunak and the Election Betting Scandal
Climate Activists Target Taylor Swift's Private Jet in UK
United States Bans Kaspersky Antivirus
US to Supply Taiwan with Suicide Drones Amid Rising Tensions with China
Bodyguard of UK Prime Minister Arrested for Alleged Election Betting
Global Displacement Crisis: Record Numbers in 2023
Muslim Community Leader Criticizes Nigel Farage for Undermining Muslims
Melinda Gates Discusses 'Horrible' Divorce from Bill Gates
Child Obesity Surge in England: A Deep Concern
U.S. Sues Adobe Over Hard-to-Cancel Subscriptions
Deadly Heat Wave Claims Dozens of Lives During Hajj Pilgrimage in Mecca
Here are today's top worldwide stories you don’t want to miss:.
World’s Largest Pilot Union Calls to Eliminate Terms Like ‘Cockpit’ and ‘Manpower’ for Equity
Woman Suing UK Intel Services Denies China Spy Allegations
Iran Sentences Nobel Laureate Narges Mohammadi to 1-Year Prison Term for Propaganda
News roundup
Good day, everyone! We've got some gripping stories for you today, spanning from the Middle East to Europe, and even a touch of Hollywood.
Britain’s Refugee Visa Rules Stranding Children in War Zones
UK Elections Predict ‘Electoral Extinction’ for PM Sunak’s Conservative Party
Italian Activist Ilaria Salis Returns Home After Election to European Parliament
Good morning!
England Faces Serbia in Euro Opener with Defensive Concerns
Dermatologist Warns Against Sunbed Usage
Fake Pro-Reform UK Social Accounts and Their Influence on Elections
UK Man Jailed for Non-Consensual Condom Removal
Reform UK Surpasses Conservatives in Historic Poll
US, Britain, Canada Accuse Russia of Interference in Moldova’s Election
Taylor Swift Fans Create Seismic Activity in Edinburgh
Sunak Aide Under Investigation for Election Bet
Labour Leader Starmer Focuses on Wealth Creation for Upcoming UK Elections
G7 to Use Frozen Russian Assets for $50 Billion Ukraine Aid
Anti-Israel Irish MEP Clare Daly LOST her seat in the EU Election
Johnson & Johnson Settles Talc Safety Claims for $700 Million
EU Urged to Welcome Skilled Russians to Weaken Putin
EU Elections Overview: Far-Right Gains and Major Political Shifts
Israel Rescues Four Hostages from Gaza
Emmanuel Macron Calls for Snap Election
Jordan Bardella: Young Far-Right Leader Poised for Future Political Influence in France
World's Oldest Privately Owned Book Auctioned for $3.8 Million
Animal Rights Activists Deface King Charles' Portrait in Protest
Dutch Military Intel Uncovers Extensive Chinese Cyber Espionage
Turkish Student Arrested for Using AI to Cheat in University Exam
×