"More than one million" investor can be affected by the FTX collapse
The crypto market has been undergoing some hard times which resulted in FTX to collapse. As a result many people can suffer from it.
The crypto community has been going through some tough times lately. In this context, the collapse of FTX may cause many people to suffer damage. According to The Financial Times, the crypto exchange FTX has more than 100,000 creditors listed in its bankruptcy filings, but that number could rise to more than one million.
"More than one million" investor can be affected by the FTX collapse
Following the sudden collapse of its exchange, FTX filed for bankruptcy last week. The situation was described as "unprecedented" by many, resulting in many people's loss. The Financial Times reports that the Royal Bahamas Police also stated yesterday that they were working "to investigate if any criminal misconduct occurred." The company announced the day after declaring bankruptcy that "unauthorized transactions" had caused millions of dollars to vanish from crypto wallets. Also, something like $1 billion worth of client reserves disappeared from FTX preceding that.
FTX's problems started when a lot of users withdrew their cryptocurrency and the price of its native FTT token fell. Binance, FTX's rival, announced that it would sell off over $500 million worth of FTT following reports of a liquidity crisis, effectively erasing the token's value.
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