What a $32 billion crypto company's bankruptcy means for future of digital currency
Sam Bankman-Fried, founder and chief executive officer of FTX Cryptocurrency Derivatives Exchange, speaks during the Institute of International Finance annual membership meeting in Washington, D.C., on Oct. 13, 2022.sector is reeling after the collapse of FTX, a digital currency exchange valued earlier this year at $32 billion and made famous by a Super Bowl ad starring comedian Larry David.
In response to the article, Changpeng Zhao, the CEO of rival crypto exchange Binance, said on Sunday that he would sell the company's $580 million-worth of FTT. Due to a lack of funds, FTX halted customer withdrawals. On Tuesday, FTX reached a deal to sell itself to Binance, the crypto exchange whose executive had helped trigger the selloff. But Binance pulled out of the deal the next day, leaving FTX in need of a way to raise cash.What will happen next for FTX
"The climate in crypto is so bad that I'm not sure anyone would want to own the accounts and liabilities of an exchange like FTX," Yermack said. Eswar Prasad, a professor at Cornell University and the author of "The Future of Money: How the Digital Revolution is Transforming Currencies and Finance," said the challenges at FTX could spur a regulatory crackdown.
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