The collapse of the FTX exchange ended up bringing it to the final straw which was filing for bankruptcy. The exchange going bankrupt has made things even worst for the entire cryptocurrency industry.
Several cryptocurrency firms and investors have ended up losing big fortunes ever since the exchange has gone out of business.
As per the crypto news website Bittribute.com, many firms that were secretly connected with FTX have started to come out revealing the truth about their links with the exchange.
Several major firms have already filed for bankruptcy as they have lost tremendously due to the FTX exchange.
Cryptocurrency Focused Companies are Opening Up
Among the investors and stakeholders are the crypto-focused companies that are now revealing their connection with FTX.
They have revealed that they had significant amounts of their investment portfolios held at the FTX exchange. With the exchange going bankrupt, all of its funds are now stuck on the platform.
From November 11 to November 14, multiple announcements were made by companies in regard to their capital stuck at the FTX exchange.
Among them were three big companies that reported huge losses. As things became unfortunate for these companies, one of them had to lay off workers in order to deal with the financial crisis.
Galois Capital Lost $50 Million
On November, Galois Capital, a major cryptocurrency hedge fund made an announcement about its connection with the FTX exchange.
The executives confirmed that a significant amount that belonged to their firm is now stuck at the exchange. Later on, a highly credible news reporting firm revealed Galois Capital has $50 million stuck at FTX.
On November 14, Hbit Limited, a cryptocurrency platform based in Hong Kong also made a similar announcement. It reported that it had $18.1 million worth of funds stuck on the exchange.
Hbit Limited officials announced that they attempted the withdrawal of $18.1 million just as the exchange announced it was halting withdrawals.
However, they were unable to do it and now, they are stuck with $18.1 million worth of funds on the exchange.
Hbit has confirmed that out of the total $18.1 million funds, $13.2 million worth of funds belongs to their users. The officials at Hbit have revealed they would keep on attempting to withdraw funds from FTX.
Unfortunately, as FTX has already announced Chapter 11 bankruptcy, it is highly likely that the platform may not be getting its funds back anytime soon.
FTX Price Keeps Declining
Although the rest of the cryptocurrency industry is facing the impact of the FTX collapse, it is the FTX Token (FTT) that has taken the most amount of damage.
In the past 30-days, FTT’s trading price has dipped 93.70% while its price has dipped 47.24% in the past 7-days. It has even experienced a 7.09% dip in the past 24 hours.
At the time of writing, FTT’s price is at $1.43 and it is constantly losing its value in the market.
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