Former crypto giant and now bankrupt cryptocurrency exchange FTX allegedly hid its insolvency, even from insiders. Reports note that several employees of FTX worldwide learned about the state of the company alongside everyone else.
Staff Discover Bankruptcy On Twitter
This week has been filled with news of the implosion of one of the biggest crypto exchanges in the world. The troubled crypto exchange FTX filed for chapter 11 bankruptcy on Friday after a tumultuous series of outbursts and revelations including the halting of withdrawals on the platform.
According to the reports, 134 entities were included in the bankruptcy filing, but the company failed to notify these entities of the situation. Additionally, some FTX employees were reported to have commented about being kept in the dark about happenings in the company.
FTX subsidiaries all over the world, Japan, Turkey e.t.c apparently all found out about the bankruptcy at the same time as everyone else. Some claimed to have found out on Twitter.
Speaking on whether they suspected that things will come to this, an anonymous entity whose name is on the petition said they saw the bankruptcy filing coming. The entities complained bitterly about how everything has been messed up and how they all put their lives on the line for the CEO, and they still wouldn’t be informed on the state of things.
Also read:The U.S. subsidiary’s general counsel Ryne Miller had actually sent an internal memo for the employees on Slack a few minutes before the announcement was made officially on Twitter. One of the employees from the Japan Subsidiary was reported to have jested that staff should monitor Sam Bankman-Fried’s (SBF) twitter as they could get updates there as opposed to getting internal updates.
FTX U.S. Halts Withdrawals
CEO of FTX and former billionaire SBF had said before that the U.S subsidiary of the platform was safe from the entire ‘shitshow’, but the division has not halted withdrawals on the exchange on Friday just after it filed for bankruptcy.
A lot of things are still unclear for now as the hot wallet related to the exchange still holds millions of dollars and it is uncertain what the next move from now will be.
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