Bitcoin (BTC) price suffered a fatal fall due to the implosion of the cryptocurrency exchange FTX. As a result, the crypto market took a tumble, leaving the exchange to file for bankruptcy on November 11.
The untimely collapse of the FTX exchange caused many investors, retailers, and institutions heavy losses as their funds are still stuck in the exchange. To make matters worse, there was a hack soon after the bankruptcy was filed, worsening the already grim situation.
The bankruptcy hearing is taking place in a federal court in Delaware. Representing FTX at this hearing is James Bromley, a partner at the law firm Sullivan & Cromwell, who stated a “substantial amount of assets have either been stolen or are missing.”
The US Securities and Exchange Commission (SEC) is currently investigating the founder Sam Bankman-Fried’s actions as the executive of FTX.
The now-defunct FTX exchange had roughly $600 million in assets stolen by an exploiter. As this hacker started offloading his funds, the market reacted to it, triggering another sell-off.
Bitcoin price crashed roughly 6% between November 19 and 22 as a result of the low liquidity during the weekends.
However, as the new week began, Bitcoin bulls seemed to have come out of hiding, denoting a sudden shift in market sentiment.
