It took less than a week for FTX to go from the third-largest cryptocurrency exchange in the world to bankruptcy court.
The embattled cryptocurrency exchange, short billions of dollars, sought bankruptcy protection after the exchange experienced the crypto equivalent of a bank run. FTX, the hedge fund Alameda Research, and dozens of other affiliated companies filed a bankruptcy petition in Delaware on Friday morning. FTX US, which originally was not expected to be included in any financial rescue, was also part of the company's bankruptcy filing.
CEO and founder Sam Bankman-Fried has resigned, the company said. Bankman-Fried was recently estimated to be worth US$23 billion and has been a prominent political donor to Democrats. His net worth has all but evaporated, according to Forbes and Bloomberg, which closely track the net worth of the world's richest people.
"I was shocked to see things unravel the way they did earlier in the week," Bankman-Fried wrote in a series of posts on Twitter.
FTX's unraveling is causing ripple effects. Already companies that backed FTX are writing down their investments. Politicians and regulators are ramping up calls for stricter oversight of the crypto industry. And this latest crisis has put pressure on the prices of bitcoin and other digital currencies. The total market value of all digital currencies dropped by about US$150 billion in the last week, according to CoinMarketCap.com.
FTX's failure goes beyond finance. The company had major sports sponsorships as well, including Formula One racing and a sponsorship deal with Major League Baseball. Miami-Dade County decided Friday to terminate its relationship with FTX, meaning the venue where the Miami Heat play will no longer be known as FTX Arena. Mercedes said it would remove FTX from its race cars starting this weekend.
FTX and Bankman-Fried, as well as his brother, were also early investors in Semafor, the high-profile news startup run by former BuzzFeed editor-in-chief and New York Times columnist Ben Smith.
Bankman-Fried has other problems as well. On Thursday, a person familiar with the matter said the Department of Justice and the Securities and Exchange Commission were looking into FTX to determine whether any criminal activity or securities offenses were committed. The person could not discuss details of the investigations publicly and spoke to The Associated Press on condition of anonymity.
The investigation is centered on the possibility that FTX may have used customers' deposits to fund bets at Alameda Research. In traditional markets, brokers are expected to separate client funds from other company assets. Violations can be punished by regulators. Financial company MF Global effectively failed for a similar practice roughly a decade ago when it intermingled client assets with its own bets.
In its bankruptcy filing, FTX listed more than 130 affiliated companies circled around the globe. The company valued its assets between US$10 billion to $50 billion, with a similar estimate for its liabilities. The company appointed as its new CEO John Ray III, a long-time bankruptcy litigator who is best known for having to clean up the mess made after the collapse of Enron.
FTX's bankruptcy is certainly to be one of the most complicated bankruptcy cases in years. The company listed more than 100,000 creditors on its filing, and with all of its customers effectively being creditors because they deposited their funds with FTX, it will take months to sort out who is owed what, bankruptcy lawyers said. Cryptocurrencies have no protections under law, and politicians on both sides of the aisle issued statements opposing any Lehman Brothers-like bailout for crypto investors.
"Unlike a case where there's (securities insurance in the failure of a brokerage) or where the FDIC steps in with a bank failure, these customers are totally exposed," said Daniel Besikof, a partner at Loeb & Loeb LLP who specializes in bankruptcy law.
FTX had agreed earlier this week to sell itself to bigger rival Binance after experiencing the cryptocurrency equivalent of a bank run. Customers fled the exchange after becoming concerned about whether FTX had sufficient capital.
The crypto world had hoped that Binance, the world's largest crypto exchange, might be able to rescue FTX and its depositors. However, after Binance took a look at FTX's books, it concluded that the smaller exchange's problems were too big to solve and backed out of the deal.
FTX is the latest in a series of cascading disasters that have shaken the crypto sector, now under intense pressure from collapsing prices and circling financial regulators. Its failure is already being felt throughout the crypto universe.
On Thursday, the venture capital fund Sequoia Capital said Thursday it is writing down its total investment of nearly US$215 million in FTX.
The cryptocurrency lender BlockFi announced on Twitter late Thursday that it is "not able to do business as usual" and pausing client withdrawals as a result of FTX's implosion.
In a letter posted to its Twitter profile late Thursday, BlockFi -- which was bailed out by Bankman-Fried's FTX early last summer -- said it was "shocked and dismayed by the news regarding FTX and Alameda."
The company ended by saying any future communications about its status "will be less frequent that what our clients and other stakeholders are used to."
Bitcoin tumbled immediately after the letter was posted and is trading below US$17,000. The original cryptocurrency, bitcoin had been hovering around US$20,000 for months before FTX's problems became public this week, sending it down briefly to around US$15,500.
Shares of the publicly traded cryptocurrency exchange Coinbase and the online trading platform Robinhood each rose nearly 12%.
----
Reporters Matt Ott and Michael Balsamo in Washington contributed.
Thousands of postal workers have begun a nationwide strike, the union representing them says, after negotiations with Canada Post failed to produce an agreement.
'Toronto, Welcome to the Eras Tour!' Taylor Swift told a roaring sold-out crowd at the Rogers Centre on Thursday night as she began the Canadian leg of her record-breaking tour.
Connor McDavid scored early in the second period to become the fourth-fastest NHL player to reach 1,000 points, then assisted on Darnell Nurse's overtime goal in the Edmonton Oilers' 3-2 victory over the Nashville Predators on Thursday night.
President-elect Donald Trump announced Thursday he will nominate anti-vaccine activist Robert F. Kennedy Jr. to lead the Department of Health and Human Services, putting a man whose views public health officials have decried as dangerous in charge of a massive agency that oversees everything from drug, vaccine and food safety to medical research, Medicare and Medicaid.
A newly released report is urging Canada to immediately end all government-funded research collaborations with China in a variety of different areas.
Police in North Vancouver say they prevented the theft of nearly $13,000 worth of cheese from a grocery store earlier this year. Now, they're asking the public for help finding the alleged thief.
Hallmark Canada has recalled a Star Wars-themed Christmas ornament after mould was found on several of the products.
A Winnipeg driver was in the right place at the right time when a paratransit van caught fire Thursday morning.
The multi-billion-dollar renovation of parliament’s Centre Block building continues to be on time and on budget, but construction crews are facing 'pressures' when it comes to the deadline and total costs, according to the department in charge of the project.
The City of Longueuil has partially lifted the confinement measure currently in effect around the site of a CN train derailment near Jacques-Cartier West Boulevard and Saint-Georges Street after the incident spilt an unknown quantity of hydrogen peroxide Thursday morning.
A teenage boy arrested along with more than 20 others following a gun battle in Toronto’s West Queen West neighbourhood was wanted in connection with a deadly home invasion in Etobicoke back in April, Toronto police say.
Five unhoused people who were staying in tents near the Rogers Centre have been given spaces in a Toronto shelters ahead of six sold-out Taylor Swift concerts that are expected to result in a significant influx of visitors to the downtown core.
U.S. border officials have deployed an 'innovative facial biometric test' in select lanes at the Peace Bridge Port of Entry.
British Columbia's chief veterinarian has told clinics that treat wild birds that they must establish protocols to prevent the spread of avian flu, warning of the risk of human exposure to the illness.
A Winnipeg driver was in the right place at the right time when a paratransit van caught fire Thursday morning.
Donald Trump spent much of his first term feeling stung and betrayed by those he'd placed in power. This time, he's not taking chances.
North Korea tested exploding drones designed to crash into targets and leader Kim Jong Un called for accelerating mass production of the weapons, state media said Friday.
Two lawyers say they can no longer represent Rudy Giuliani in a legal fight over property he's been ordered to give up to satisfy part of a $148 million defamation judgment against him.
The Pentagon's latest report on UFOs has revealed hundreds of new reports of unidentified and unexplained aerial phenomena but no indications suggesting an extraterrestrial origin.
President-elect Donald Trump announced Thursday he will nominate anti-vaccine activist Robert F. Kennedy Jr. to lead the Department of Health and Human Services, putting a man whose views public health officials have decried as dangerous in charge of a massive agency that oversees everything from drug, vaccine and food safety to medical research, Medicare and Medicaid.
Masses of residents fled a running battle Thursday between gang members and police in one of the few neighborhoods of Haiti’s capital that hadn't already been fully taken over by gangs, as violence flared amid political turmoil.
Within days, thousands of frontline RCMP officers will be starting their shifts equipped with a body-worn camera, as the national police force begins deploying the program across Canada.
The multi-billion-dollar renovation of parliament’s Centre Block building continues to be on time and on budget, but construction crews are facing 'pressures' when it comes to the deadline and total costs, according to the department in charge of the project.
A newly released report is urging Canada to immediately end all government-funded research collaborations with China in a variety of different areas.
Hallmark Canada has recalled a Star Wars-themed Christmas ornament after mould was found on several of the products.
The number of measles cases in New Brunswick continue to climb. Officials with New Brunswick’s Department of Health said as of Thursday, the number of confirmed cases since October has reached 43.
British Columbia's chief veterinarian has told clinics that treat wild birds that they must establish protocols to prevent the spread of avian flu, warning of the risk of human exposure to the illness.
Premier Doug Ford's government has signed a $100-million deal with Elon Musk's SpaceX to deliver high-speed internet to remote residents in rural and northern Ontario.
Jenni Gibbons was inspired to become an astronaut at a young age by Canada’s early space explorers, including Roberta Bondar. Now, the Artemis II backup crew member is hoping she can motivate the next generation to look to the stars.
Zookeepers in Scotland have blamed pyrotechnics from annual Bonfire Night celebrations for the death of a baby red panda named Roxie.
The lawyer for a former cast member of the 'Real Housewives of New York' told a federal judge Thursday that the First Amendment cannot shield the show’s creators from a lawsuit alleging that the show’s participants were subjected to a “rotted workplace culture.”
'Toronto, Welcome to the Eras Tour!' Taylor Swift told a roaring sold-out crowd at the Rogers Centre on Thursday night as she began the Canadian leg of her record-breaking tour.
Longoria said she has increasingly felt like the US is "a scary place" and that she feels it will continue to be following the results of the presidential election.
Amid a potential postal worker strike, here’s a look at how many letters and parcels the corporation delivers and how those numbers have changed in the internet age.
Thousands of postal workers have begun a nationwide strike, the union representing them says, after negotiations with Canada Post failed to produce an agreement.
Scotiabank users say they are having issues using their bank’s services following a scheduled maintenance period that ended days ago.
The ancient Roman Colosseum will be the venue of gladiator fights -- albeit staged -- for the first time in two millennia under a US$1.5 million sponsorship deal with Airbnb that aims to promote 'a more conscious tourism.'
The Australian government's plan to ban children from social media to protect them from harm has won almost universal political support, but keeping them off social media looks far more difficult in practical terms.
The California Insurance Department said four Los Angeles residents were arrested Wednesday, accused of defrauding three insurance companies out of nearly $142,000 by claiming a bear had caused damage to their vehicles.
The world's tallest teenager might have to wait a year to become the world's tallest college basketball player.
The Tampa Bay Rays will play their 2025 home games at the New York Yankees' nearby spring training ballpark amid uncertainty about the future of hurricane-damaged Tropicana Field, Rays executives told The Associated Press.
Connor McDavid scored early in the second period to become the fourth-fastest NHL player to reach 1,000 points, then assisted on Darnell Nurse's overtime goal in the Edmonton Oilers' 3-2 victory over the Nashville Predators on Thursday night.
In part two of a three-part series into how thieves are able to drive off with modern vehicles so easily, CTV W5 correspondent Jon Woodward uses a device flagged by police to easily clone a car key.
When a Tesla crashed on Lakeshore Boulevard in Toronto last month, the first people on scene knew there were occupants inside but couldn't immediately get them out.
Almost four out of five Canadian drivers switch to winter tires when the weather calls for them, according to a new survey.
Some Calgary residents caught what appeared to be a meteor streaking across the sky early on Wednesday morning.
Four years ago, Phill Hebb started up 'Phil’s Unique Birdhouses' and since then, they’ve made their way all across Canada and into the United States.
A New Brunswick fashion designer recently won the top prize at a national event for a dress she made using an unconventional material.
Dr. Ronald Weiss, who performed nearly 60,000 vasectomies on Ottawa men, establishing him as the "Wayne Gretzky" of the procedure, has died.
A congestion crisis, a traffic nightmare, or unrelenting gridlock -- whatever you call it, most agree that Toronto has a congestion problem. To alleviate some of the gridlock, the Ontario government has announced it plans to remove bike lanes from three major roadways.
For the second year in a row, the ‘Gift-a-Family’ campaign is hoping to make the holidays happier for children and families in need throughout Barrie.
Some of the most prolific photographers behind CTV Skywatch Pics of the Day use the medium for fun, therapy, and connection.
A young family from Codroy Valley, N.L., is happy to be on land and resting with their newborn daughter, Miley, after an overwhelming, yet exciting experience at sea.
As Connor Nijsse prepared to remove some old drywall during his garage renovation, he feared the worst.
The mayor of Delta, home to Canada's largest container terminal, says organized crime groups are exploiting security weaknesses at ports.
One person was taken into custody over what Vancouver Police say is part of a hate-crime investigation.
Carlos Parra had never heard of stomach cancer before receiving the call that he had been diagnosed with it.
'Toronto, Welcome to the Eras Tour!' Taylor Swift told a roaring sold-out crowd at the Rogers Centre on Thursday night as she began the Canadian leg of her record-breaking tour.
Five unhoused people who were staying in tents near the Rogers Centre have been given spaces in a Toronto shelters ahead of six sold-out Taylor Swift concerts that are expected to result in a significant influx of visitors to the downtown core.
Police say an officer who forcefully removed a 'weapon' from a protester outside of a Hindu temple in Brampton was acting 'within the lawful execution of his duties' after bystander video of the incident circulated widely online.
Canada Post workers are on strike after failing to reach a negotiated agreement with their employer.
Calgary councillors are set to start debating mid-cycle budget adjustments next week that include proposed property tax increases and a pair of borrowing bylaws that equal more than a billion dollars.
New EMS data obtained from Alberta Health Services (AHS) outlines a substantial improvement in reducing “red alerts” for the Calgary Zone, in which no ambulances are readily available, but whistleblowers say the data is misleading and thousands of patients are still being left waiting for too long.
Like many of us, former Ottawa firefighter Derek Bowker had not luck scoring tickets to Taylor Swift's Eras Tour in Toronto. But that changed for Bowker after entering an online raffle last week.
Seventeen people are facing charges following an 18-month investigation into the illegal drug trade operating in the Ottawa area.
The union representing full-time professors and librarians at the University of Ottawa (uOttawa) says its members have voted 80.9 per cent in Favour of strike mandate.
It’s been one year since Karl Tremblay, the lead singer of Les Cowboys Fringants, died of prostate cancer at the age of 47.
The mayor of Lachine said she wants police to open an investigation after a bronze statue of a young boy was dismembered in a monument paying hommage to the founder of the Motherhouse of the Sisters of Saint Anne.
Students at Dawson College voted in favour of a one-day strike in support of Gaza.
Connor McDavid scored early in the second period to become the fourth-fastest NHL player to reach 1,000 points, then assisted on Darnell Nurse's overtime goal in the Edmonton Oilers' 3-2 victory over the Nashville Predators on Thursday night.
Thousands of postal workers have begun a nationwide strike, the union representing them says, after negotiations with Canada Post failed to produce an agreement.
Chiefs from Treaty First Nations in Alberta met last month with the minister of Indigenous Services Canada to reiterate their concerns with the First Nations Clean Water Act.
Halifax Water is asking residents and businesses supplied by the Lake Major Water Supply Plant to begin following voluntary water conservation measures.
New Brunswick Premier Susan Holt has given marching orders to her new cabinet ministers to fulfil promises made during last month's election.
The 2021 Nova Scotia election was dominated by health care, but this time, no single issue has captured attention quite the same way.
A Winnipeg driver was in the right place at the right time when a paratransit van caught fire Thursday morning.
Going to the mailbox to check for letters and packages is a daily ritual for many of us, but not for people living at a Manitoba Housing complex in Winnipeg. They're cut off from their mail.
A Manitoba organization got an on-stage shoutout from The Boss Wednesday night.
Here are the headliners for the 2025 Country Thunder Saskatchewan music festival in the Craven Valley.
At their seventh annual Movember soccer match this weekend, FC Regina will be honouring Gio Sosa, who passed away from cancer in 2023.
Two people have been charged after Saskatchewan RCMP seized 31 guns from a residence in Lafleche and a rural yard site south of the town.
Most people run away from messes, but one Cambridge, Ont. man runs toward them.
The wait is finally over for thousands of Taylor Swift fans. The superstar kicked off the Toronto leg of her Eras tour on Thursday. We checked in with concert-goers in Waterloo Region and Guelph.
The long-time home of CTV News Kitchener is now nothing more than a memory.
Here are the headliners for the 2025 Country Thunder Saskatchewan music festival in the Craven Valley.
Elections Saskatoon experienced a few issues Wednesday night, which translated into significant delays in reporting voting results for the 2024 civic election.
Cynthia Block is the 29th mayor of Saskatoon, and the first woman elected to the position in the city's history.
The Pentagon's latest report on UFOs has revealed hundreds of new reports of unidentified and unexplained aerial phenomena but no indications suggesting an extraterrestrial origin.
A fire has closed a shelter for women and families fleeing abuse in Batchewana First Nation, just outside of Sault Ste. Marie.
'Toronto, Welcome to the Eras Tour!' Taylor Swift told a roaring sold-out crowd at the Rogers Centre on Thursday night as she began the Canadian leg of her record-breaking tour.
It is the final stage in a long fight - Tyler Jollymore and his mother Michele are among dozens of tenants who received N12 and N13 eviction notices almost two years ago.
More than a year into the extensive renovation of Gateway Casinos London the project is approaching a major milestone.
A Huron County man has lost his hunting license after nearly hitting a municipal employee with an errant shot this past summer.
Nick Vassilodimitrakis appeared in a Barrie courtroom Thursday morning representing himself by video from a detention centre in London, Ont. where he pleaded guilty to stabbing veteran Barrie police officer Jim Peters.
Provincial police charged a 44-year-old man from Midland following an incident on Wednesday that resulted in a hold and secure measure at a nearby high school and a road closure.
While it may not be December just yet, package deliveries left on porches are once again the target for thieves or so-called 'porch pirates.'
A once in a lifetime celebration for Windsor Ont.'s newest member of the Centenarian Club took place on Thursday.
Around 200 students walked out of class at Riverside Secondary School to protest a recent decision by Greater Essex County District School Board (GECDSB) trustees to cut a specialized diploma program offering an enriched learning stream.
For the holiday season, the LaSalle Firefighters Association has launched a new charity initiative.
British Columbia's chief veterinarian has told clinics that treat wild birds that they must establish protocols to prevent the spread of avian flu, warning of the risk of human exposure to the illness.
Post-secondary institutions across Canada are feeling the pinch from the federal government’s cap on permits for international students.
An orange tabby feline has been stuck in a tree for at least three days now in Maple Bay, and neighbors are looking for outside help to get it down.
British Columbia's independent police watchdog has cleared officers of wrongdoing in a crash where three people were killed south of Kamloops in July of last year.
A B.C. woman who stole more than $14,000 in volunteer-raised funds that were supposed to be spent on school supplies and programs – including hot meals for vulnerable kids – won't spend any time in jail.
The emergency department at South Okanagan General Hospital in Oliver, B.C., will be closed for 31 hours this weekend, the second such closure in a week and the third since the start of November.
With Christmas fast approaching, MyCityCare's annual Shop of Wonders officially opened for the season Thursday.
Lethbridge business owners and organizations are being reminded the deadline for the annual waste diversion report is just around the corner.
After months of speculation, the Ministry of Municipal Affairs will move ahead with an inspection of the City of Medicine Hat.
The government of Ontario has announced details of a new program that will bring high-speed internet to thousands of homes in remote and rural communities across Ontario.
A fire has closed a shelter for women and families fleeing abuse in Batchewana First Nation, just outside of Sault Ste. Marie.
A 72-year-old from Blind River has been charged with multiple counts of sexual assault involving a victim under the age of 16.
Police in Newfoundland say a man was electrocuted Saturday by a downed power wire about 10 kilometres north of St. John's, N.L.
On Thursday morning, Dave Penny officially ended a suggested hundred-day isolation period that followed his diagnosis and stem cell treatment for non-Hodgkin's Lymphoma. On Thursday night, Penny returned to a stage at a downtown St. John's bar, regaling a small crowd with songs and stories with a distinctive Newfoundland flair.
A Memorial University scientist says the mysterious white blobs washing up on Newfoundland beaches are actually gobs of plastic -- and they need to be cleaned up.
The Shopping Trends team is independent of the journalists at CTV News. We may earn a commission when you use our links to shop. Read about us.
