Less than 24 hours ago we were being told that FTX had a chance and white knights were being consulted to save the day.
Well, less than a day later the company is filing for chapter 11 bankruptcy.
I guess that is what happens when the country where you are located decides to freeze all your assets.
Even more surprising was the fact that FTX.US was included in this bankruptcy filing...
Anyways, this is not great news but this is what happens in most of these cases and is all part of the process.
Now it will likely take weeks and months for those involved to see if they will get any of their money back, though I am sure they will get some, just not sure how much.
Based on the numbers I have seen, ie liabilities of roughly $10 billion with assets of a little over $2 billion, which would imply something in the neighborhood of investors getting something like $.20 on the dollar... though those numbers could be wildly off.
Now we wait and see what the fallout will be from, considering the assets are frozen and no one really knows how much they are going to lose, perhaps the margin calls coming from this will be delayed to a later date, or perhaps have already happened.
Here's to hoping!
The good news in all of this is that the stock market has been strong the last couple days and I expect that to continue in the near and medium term, which should help put a bid in bitcoin which will likely hold up the crypto market compared with what it could have done.
The algos tied to stocks will do their best to hold bitcoin up as long as stocks are going up.