‘It’s all gone’: FTX bankruptcy has retail traders bracing for losses
For a little while, it appeared some of FTX’s American customers might escape the worst-case scenario confronting the beleaguered crypto platform.FTX US, a separate entity from Sam Bankman-Fried’s FTX.com, tweeted on Thursday (Nov 10) that it was still operational and withdrawals were being processed as normal, even as the rest of the company came crashing down.
But after Bankman-Fried’s empire filed for Chapter 11 on Friday, FTX US customers were ensnared in a swift financial collapse that has rattled the broader industry, shocked investors and left retail traders facing a long slog to get any of their money back.Investors with crypto on the FTX platform — who numbered more than 5 million worldwide at the peak — will be closely watching the bankruptcy proceedings for any hope they might be refunded.
However, many are resigning themselves to the fact that their holdings may be gone forever. “The company and Sam Bankman-Fried seemed trustworthy,” said Justin Zhang, a 34-year-old engineer in Los Angeles. “I thought FTX US was different because of all the regulations put in place, but it’s not.”While the FTX app said his withdrawal has been processed, Zhang said his bank told him they had not received the notification or the funds.
He fears all his assets in FTX US, which include Bitcoin, Ether and Golden Warrior NFTs worth US$11,000, may be lost for good.
