Cryptocurrency exchanges went bankrupt one after another. (Image source: Adobe Stock)
[Look at China News on November 29, 2022](See comprehensive report by Chinese reporter Wen Long) The cryptocurrency exchange FTX has filed for bankruptcy. More than 130 companies are associated with FTX. The partner absconded with the money.
Since the cryptocurrency trading platform FTX filed for bankruptcy on November 12, not only has the currency circle been shocked, but this cryptocurrency transaction bankruptcy case that has attracted attention from all walks of life has exposed some unknown inside stories of FTX. In the first FTX bankruptcy hearing, the company’s lawyers said that FTX founder and former chief executive officer (CEO) Sam Bankman-Fried (Sam Bankman-Fried) treats the company as a “private domain.”
In an interview with the media, Jean-Paul Servais, chairman of the International Securities Supervisory Organization (IOSCO), said that the regulation of such cryptocurrency trading platforms will be the focus of the goal in 2023.
Cryptocurrencies like Bitcoin have been around for years, but regulators have refused to jump in to create new rules.
But FTX’s bankruptcy has sparked global attention, with Serves estimating that 1 million creditors face losses totaling billions of dollars, which will change the goals of future regulation.
“Things are changing, and because of how interconnected different types of businesses are, I think it’s important now that we can start talking, and that’s where we’re going to get to,” Serves said.
In mainstream finance, there is a functional separation between activities such as brokerage, trading, banking services, and issuance, each with its own role and set of rules and safeguards for conduct. However, crypto “groups” like FTX have emerged, playing multiple roles at the same time.
Now more risks have erupted. On November 29, Reuters reported that Bitfront, an American cryptocurrency exchange backed by Japanese social media company Line Corp, said it would cease operations within a few months.
“Despite our efforts … we have regrettably decided that we need to shut down BITFRONT,” the California-based company said in a statement on its website.
Bitfront said it will suspend new registrations and credit card payments from November 28, and will suspend withdrawals on March 31, 2023.
It is reported that in the middle of this month, AAX stopped user withdrawals due to the impact of the market turmoil and the huge pressure on capital operation and income. The money invested may be lost.
On November 28, a screenshot of the conversation between the head of human resources of AAX parent company Atom Asset and David Wan, the CEO of AAX, was leaked on the Internet. The head of human resources of Atom Asset informed David Wan that the company was about to be dissolved. Monthly salary, and pointed out that the assets held by employees in AAX may only be returned in half, and will be processed separately. During the dialogue, there was no mention of user rights and interests.
After the above-mentioned screenshot of the conversation was exposed, some users asked AAX customer service for help to inquire about the authenticity, but the customer service replied to the user “planning for the worst and holding on to the last ray of hope”, which aroused user indignation.
In the afternoon of the same day, Ben Castlin, vice president of AAX, posted on his personal Twitter, confirming that he had resigned from AAX, and said that he had worked hard for the community, but none of the proposals were accepted by the company.
Ben Castlin said that he himself once trusted the exchange and used AAX as a platform to educate investors. Yet the way AAX handles things right now is empathetic and too opaque.
Ben Castlin also revealed that many people have come to him for help, including his family, but he can’t do anything, and everyone is waiting for the next step. He still hoped that the situation would not end up being handled in a malicious manner, but the damage had been done, the brand no longer existed and the trust had been destroyed.
Ben Castlin pointed out at the end that after so many years, AAX has supported certain values, but now there are empty holes left, and said that many social media have been disabled because too many people believe that he can solve the problem, but he can’t. He also said that these postings are intended for the founders and board of directors of AAX, and he will continue to pay attention to the development of the situation and continue to maintain hope.
Source: Watch China
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