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- 1 The Australian exchange lost $50 million after the Bahamas-based crypto exchange’s downfall.
- 2 Thousands of investors and customers lost billions of dollars after the demise of the second-largest exchange.
TrigonX, an Australia-based crypto exchange, has announced relaunching its platform after its demise following FTX’s bankruptcy. As per data relevant data, the exchange has an investment of $50 million in Sam Bankman-Fried exchange.
On December 16, 2022, TrigonX appointed administrator when it strived to meet the withdrawal demands following FTX’s demise. The sudden collapse of the Bahamas-based crypto exchange has troubled thousands of companies invested in FTX.
Per the legal firm Kroll, the downfall of TrigonX was based on numerous factors, including FTX’s failure and the legal actions its customers took for returning the funds after the rumors that TrigonX had massive exposure with now bankrupt FTX.
Kroll confirmed in its investigation that a vast amount of funds were transferred in numerous transactions from FTX to TrigonX director Matteo Salerno and his wife before its bankruptcy. Salerno clarified that the transactions identified by the law firms were made to bring employees’ entitlement up to date.
King River Capital was one of the leading investors in Salerno’s exchange. It is continuously doing its best to regain its $9 million investment in the exchange after its downfall, followed by FTX.
The lead investors argue that the majority of the time, it uses Trigon Service to convert traditional currency into stablecoin and launches legal action against the Co-founder and director of the exchange for misleading claims.
Excluding TrigonX Digital Surge, an Australian crypto exchange has invested millions of dollars in FTX, but due to its five-year bailout plan, the exchange survived and continued its operations.
FTX Was One of the Worst Events For the Industry
After losing millions of dollars in FTX’s demise, crypto investors are afraid of making crypto investments. Several giant investors even filed for bankruptcy due lack of funds and to fulfill customers’ withdrawal demands.
Crypto exchange Sam Bankman-Fried filed for Chapter-11 bankruptcy in Mid November 2022, wiping out hundreds of billions of dollars in 78 hours. The downfall of the FTX empire started when some pages of balance went viral on social media.
The viral documents revealed that a massive chunk of money was missing from FTX and its sister company. The revelation shook the market, and FTT holders started selling the tokens at lower prices to bail out their investments. FTX processed over $6 billion of transactions in 72 hours, and at the same time, the crypto market fell over 18% and lost more than $824 billion in a week. The situation was hard to handle, so Sam Bankman resigned as CEO.
After SBF’s resignation, John Ray was appointed CEO of FTX. In the last few months, Ray held several meetings with company employees. As per the latest court filing, John is preparing a roadmap to relaunch FTX in the coming times.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
