Two Years After FTX Collapse, Bitcoin Surpasses $82,000
On this day in 2022, FTX filed for Chapter 11 bankruptcy. With Sam Bankman-Fried and two executives imprisoned, progress has been made since the November crisis that severely impacted the cryptocurrency sector. However, FTX remains in bankruptcy proceedings, which are expected to conclude soon.
The estate of the former exchange is pursuing legal action against Binance and its former CEO Changpeng Zhao. FTX alleges that a $1.76 billion transfer from July 2021 constituted a "constructive fraudulent transfer," occurring while FTX attempted to buy out Binance's stake prior to public scrutiny. Evidence from the trial indicates that Caroline Ellison, former CEO of Alameda, warned Bankman-Fried about insufficient funds for the repurchase.
Ellison also testified that Zhao aimed to damage FTX by publicly selling his FTT tokens, which contributed to FTX's collapse. Despite these events, Binance reportedly gained 20% market share by the end of 2022 but has faced its own challenges, including a lawsuit with the US government.
In contrast to the legal turmoil, Bitcoin recently surpassed $82,000, demonstrating a remarkable recovery in the cryptocurrency market. This recovery highlights the industry's resilience, moving from the brink of collapse to prominence.