The embattled crypto exchange FTX is facing challenges as it attempts to repay customers following a significant downturn. To raise funds for this purpose, FTX has sold off its crypto holdings.
In the turbulent events of 2022, FTX’s collapse had a profound impact on the crypto market, resulting in significant debts owed to customers.
In the aftermath, FTX has been diligently investigating ways to keep its promises to users. In August 2023, they presented a proposal to settle debts in cash and relaunch the platform for international users using the domain FTX.com.
According to Bloomberg, FTX is on track to earn $4.4 billion by December 2023, up from $2.3 billion in October. Coinpaprika announced in December that the platform had successfully raised $1.8 billion by divesting assets.
Furthermore, FTX has been strategically trading Bitcoin derivatives to reduce risks and increase profits from their crypto holdings.
Commenting on FTX’s Bitcoin trades, Zerohedge noted that FTX, as a significant futures short of Bitcoin (trading or betting against Bitcoin’s price), may face increased financial challenges if Bitcoin’s price rises significantly.
FTX has acknowledged the possibility of not fully repaying customers, implying that users of the FTX.com platform may experience increased losses.
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