FTX bankruptcy freezes millions of crypto company funds

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Galois Capital, New Huo Technology and Nestcoin are some of the crypto firms that have funds stuck on FTX while the exchange files for bankruptcy in the United States. News The collapse and subsequent fall of cryptocurrency exchange FTX continues the ripple effect throughout the crypto industry. Several crypto-focused firms have reported significant capital stuck on FTX as the exchange undergoes bankruptcy filings in the United States. According to the announcement, Li Lin (controlling shareholder of the company, founder of Huobi crypto exchange) agreed to loan the company up to $14 million for withdrawal processing. The company doesn’t know the financial impact of FTX going bankrupt if it can’t withdraw the funds. pic.twitter.com/0Mjo4SYF7R– YB (25,25) ? (@YeleBademosi, November 14, 2022
Previously, CoinGecko, a crypto data aggregator platform, warned that layoffs in the crypto sector could rise when the “full effect” of FTX’s sudden collapse takes place. Don’t be surprised if it happens. On November 11, FTX announced that approximately 130 companies from its FTX group, which includes its United States entity FTX.US, and sister trading firm Alameda Research, declared they would file bankruptcy in the U.S. following a liquidity crisis. Customers were left without access to their funds, and FTX Digital Markets, a Bahamas-based subsidiary of FTX, had its assets frozen by the local securities regulator and liquidators appointed to protect its funds while bankruptcy proceedings are underway