From Far West of cryptocurrencies emerged with the failure of the exchange platform ftx you are trying to mend what is healthy is left. Tomorrow it will be the first - it is assumed in a long series - of appointments that will provide information on the progress of what has been dubbed "the virtual bankruptcy of the century" and which has triggered fears of expansion into other sectors.
After the Chapter 11 filing by the thirty-year-old founder of Ftx Sam Bankman-Fried (SBF), everything passed in the hands of John Ray III, in charge of bankruptcy procedure by Ftx and named managing director dshe company. Ray, the same one who cured the bankruptcy of Enron (until now the biggest crash of old-fashioned finance) started his work with a shocking statement: “Never in my career have I seen such a complete failure of corporate control systems and such a complete absence of credible financial information. But then Ray began to investigate and do the accounts to present to the judges”.
FTX bankruptcy in chaos: asset sales and recapitalizations are preparing
So sat the platform announced to have started one strategic review of its global assets and is preparing to sell or reorganize certain assets. Tomorrow there will be a hearing on the so-called "motions of the first day” di FTX in front of a bankruptcy judge of the United States, as reported by the Reuters agency.
When a debtor files for Chapter 11 bankruptcy protection, his attorney typically files these types of motions, which as the name suggests, are initiated as soon as possible. The motions are requests for the court to pay off certain creditors, so the organization can continue to operate. Most day one motions are approved by the court, so there are no gaps in payments to essential staff and vendors.
"FTX will consider sales, recapitalizations or other strategic transactions for some of its units,” it said in a statement John Ray. In addition, Ray has requested permission to provisionally pay existing pre-appeal claims of up to $9,3 million to its most critical suppliers and then ramp up to $17,5 million. If FTX does not receive the requested judicial relief there will be "immediate and irreparable damages" to its assets.
Curator Ray: Many FTX subsidiaries have creditworthy balance sheets
“Based on our review last week, we are pleased to hear that many regulated or licensed affiliates of FTX, inside and outside the United States, have strong balance sheets, responsible management and valuable franchises,” said FTX's John Ray.
FTX It has identified 216 debit bank accounts with positive balances as of Nov. 16 but has so far only been able to verify balances in 144 accounts, the company said in a filing to the court. FTX, along with approximately 101 affiliated companies, has also applied for a judicial order to enable the operation of a new global cash management system and payment to its critical suppliers. The firm has named Perella Weinberg Partners LP as the lead investment banker to help with the sale process, again subject to court approval.
In recent days, the FTX platform has fired three of its top executives, including the co-founder Gary Wang, the Wall Street Journal reported, citing an FTX spokeswoman. The other executives fired were the technical director Nishad Singh e Caroline Ellison, which ran the commercial arm of FTX Alameda Research, the paper said.
Crac Ftx: who are involved? There are also funds BlackRock, Sequoia Capital, Tiger Global
The Washington Post, citing new court documents, reported that FTX owes its 50 largest creditors at least $3,1 billion. The largest amount to be repaid is $226 million. There are also 10 creditors with claims of at least $100 million. What is most worrying is the fact that among the companies that have invested in Ftx there are noble names in international investment such as BlackRock, Sequoia Capital, Tiger Global and the pension fund Ontario Teachers' Pension Plan. And the thought goes to the possible domino effect if they were to find themselves in difficulty.
The "Far West" of cryptocurrencies: now it's time to escape from virtual branches
Certainly an area of non-regulations in which great investment returns and great wealth are promised could not fail to entice many. Now that instead the damages of the lack of rules are starting to be felt, we are starting to backtrack. On the one hand with the request for rules, as did the Bank of England. This morning Jon Cunliffe, deputy governor of Boe said the implosion of FTX shows the need to bring the world of cryptocurrencies within the regulatory framework. On the other, some sort of virtual bank run by those who believed in the investment and now he wants to get out of it as soon as possible.
At the moment, the Bitcoin trades below $16, Ethereum is trading in the $1.120 area, while the market capitalization of digital assets has decreased to 790 billion. “The landscape is not improving for cryptocurrencies as the aftermath of the FTX crash continues to be uncovered. Bitcoin is down about 4% this morning, trading below $16.000,” Oanda Senior Market Analyst Craig Erlam wrote in a note. Crypto, according to the analyst, “are now very vulnerable”, with another sharp drop in the short term looking “definitely possible”. Trust in digital assets, Erlam explained, "has been destroyed, and it will take a while before it recovers."
Meanwhile, they count the first victims
BlockFi, ithe large cryptocurrency deposit account to which Sbf had proposed a bailout last spring. Even then the sector had had to face a first wave of this crisis, which culminated in the bankruptcies of Luna (a blockchain valued by the market at its peak over 40 billion, which vanished within three days) and of Celsius (which had gained the reputation of the largest and most reliable cryptocurrency deposit account, with 2 million customers worldwide, including Italy). Even BlockFi was about to collapse, but it was Sam who "saved" it by opening a 250 million credit line. But it didn't help because now BlockFi has gone belly up. Also at great riskCanadian exchange Voyager, also rescued by Sam in the spring. According to the latest rumors collected by Sole24ore, in this second round the savior could be Changpeng Zhao (CZ), CEO of Binance, the first crypto-exchange in the world, the same one that with a tweet dated November 6 – in which he declared his intention to sell his half-billion-dollar position in Ftx because his accounts smelled bad – gave birth to the current phase of Darwinian selection in the sector. Tough hours even for the customers of genesis, the first cryptocurrency lending platform, which has suspended withdrawals since November 16th. The problem is that Genesis acted as a counterparty to various secondary crypto lending services, including Gemini Earn offered by Gemini, a crypto-exchange founded by the Winklevoss twins, best known for suing Marc Zuckerberg claiming the invention as their own of Facebook. It seems that Genesis needs a billion dollars to recover.
