Is FTX Trading Ltd on the brink of collapse?

We’ll send you a myFT Daily Digest email rounding up the latest FTX Trading Ltd news every morning. FTX is on the brink of collapse as chief Sam Bankman-Fried races to secure billions of dollars to salvage his empire after Binance ditched an eleventh-hour rescue of one of the world’s biggest crypto exchanges.

How much does FTX owe?

The exchange owes as much as $8 billion, according to people familiar with its finances. FTX’s collapse has destabilized the crypto industry, which was already reeling from a crash in the spring that drained $1 trillion from the market. The prices of the leading cryptocurrencies, Bitcoin and Ether, have plummeted.

Why did FTX file for bankruptcy?

FTX filed for bankruptcy at the end of last week, after Binance reversed course on a deal to save the company. The bankruptcy filing on Thursday by Mr. Ray, the new FTX chief, described numerous corporate missteps, including the use of software to “conceal the misuse of customer funds.”

What went wrong with FTX?

At the time, FTX was the third-largest crypto exchange. The fallout will reverberate for years to come as investors, courts, and regulators try to claw back funds lost at these companies and prevent a catastrophe from happening again. Learn more about what went wrong with FTX, including the role of its founder and former CEO, Sam Bankman-Fried .