FTX – one of the largest cryptocurrency exchanges in the world has filed for bankruptcy protection. The founder of SBF also resigned as CEO. Meanwhile, the US Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission and the US Department of Justice are said to be investigating FTX. After the collapse of the FTX exchange, a number of crypto exchanges are ready to provide proof of asset transparency.
The tragedy of the cryptocurrency market
The crisis of FTX – the largest cryptocurrency exchange in the US is the focus of the crypto market in recent days. Just last Wednesday, the fate of FTX seemed to have been saved with the buyback deal of Binance, but today, this hope has been shattered. The reason is that the difference between FTX’s debt and assets can be up to 6 billion USD.
Sam Bankman-Fried – CEO of crypto exchange FTX.
In addition, U.S. government regulators are investigating whether FTX made a mistake in managing clients’ funds. Not only that, but an issue of concern is the relationship between FTX and other companies in the crypto empire of founder Sam Bankman-Fried, including the investment fund Almeda Research.
This unexpected curtain down caused the fate of the world’s second-largest cryptocurrency exchange and its customers to fall into a dark situation. Moreover, this raises concerns about the risk scenario that spreads to the entire Blockchain industry.
Following the announcement of Binance’s refusal to buy back FTX, Bitcoin plummeted below the $16,000 mark for the first time since 2020.
Transparency is enhanced after the FTX incident
One of the reasons why FTX is in a state of crisis today is concerns about the exchange using users’ deposits for the wrong purpose. The incident caused the global crypto community to immediately question the transparency of the operations of crypto exchanges.
Faced with the above situation, Binance CEO Changpeng Zhao (CZ) has just called on crypto exchanges to provide proof of customer deposit management.
CZ requests popular crypto exchanges to provide proof of customer deposits.
The solution offered by the CEO of Binance is to avoid a similar situation as FTX. In response to CZ’s words, Ben Zhou – CEO of Bybit, the world’s third most visited cryptocurrency exchange, confirmed that soon to provide proof of the openness and transparency of assets of electronic exchanges.
“The industry as a whole has a duty and an obligation to do what’s best for customers. Bybit has always been a leader in the field and offers the highest level of fund safety and security. We can do even better,” shared Bybit CEO to reassure users.
According to experts, part of the reason for the collapse of the FTX exchange was the participation in risky ventures with the assets of customers.
Therefore, in a move to reassure users, Ben Zhou – CEO of the world’s third largest exchange emphasized Bybit’s stance towards customer assets, which is not to use them for any purpose. other. “Bybit ensures all user assets are stored independently, always available on demand and without delay,” said Ben Zhui.
Immediately after Ben Zhou’s statement, many leading crypto exchanges such as OKX, Huobi, Kucoin … also announced that they are preparing to make publicly and transparently the wallets that are storing customer assets. The above move is seen as a move by exchanges to ensure that they do not fall in the footsteps of FTX.
In a recent share, Ben Zhou said that the recent crypto market volatility is a wake-up call for the entire industry. This incident has reminded exchanges of the importance of user trust. Keeping customers’ trust should be a top priority for every exchange.
FTX Trading said in its bankruptcy filing to have between $10 billion and $50 billion in assets, between $10 billion and $50 billion in liabilities, and more than 100,000 creditors. Analysts predict that the FTX case will have a ripple effect on other businesses and that this is not the final default in the crypto ecosystem. FTX is currently under investigation by the US Securities and Exchange Commission, the US Department of Justice, and the Commodity Futures Trading Commission.