Cryptocurrency prices slid again, particularly tokens associated with Sam Bankman-Fried’s collapsed FTX empire. There were growing signs that customers of the bankrupt digital-asset exchange have little chance of recovering much of their deposits.
FTX Trading International held just $900-million in liquid assets on Thursday – the day before it filed for Chapter 11 bankruptcy – against $9-billion of liabilities, according to sources familiar with the matter. The data referenced a negative $8-billion of a “hidden, poorly internally labelled” fiat currency account and noted $5-billion of withdrawals by users last week.
Cryptocurrency markets began the week in Asia on the back foot. Bitcoin retreated almost 3% at one point to drop below $16,000. Ether also suffered losses. Solana, one of the tokens associated with Bankman-Fried’s failed digital-asset empire, was down about 10% and has plunged over 60% this month. Crypto exchange AAX has suspended withdrawals, citing complications with a system upgrade and blaming failures at a third-party partner.
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