Sam Bankman-Fried’s digital-asset empire filed for Chapter 11 bankruptcy in Delaware. His crypto trading company, Alameda Research, listed at least $10 billion of assets and liabilities each.
Cyprus has suspended FTX’s license to operate an investment business in Europe. The crisis could lead to a tightening of US and EU crypto regulations. Wider crypto markets were hit by the fallout, with Bitcoin falling more than 8% at one point. Former Treasury Secretary Lawrence Summers compared the meltdown to that of Enron Corp.