( FTX saw a massive crash in Indonesia after the domestic crypto market stopped the FTX tokens trading)
Indonesia has ordered the domestic crypto market to stop FTX trading following its bankruptcy in the US. The sector regulator said on Thursday. The statement comes after the FTX filed a case for bankruptcy in the US and is subjected to investigation by other regulatory countries around the globe.
The industry oversees the crypto market, seeing the investigation in the US. Indonesian authorities ordered the discontinuation of FTT trading on all domestic platforms. According to a report, the order will be enforced from Monday, Nov. 14.
The move follows bankruptcy protection On FTX in the US. The court proceedings have been initiated as the exchange has seen a massive withdrawal by the platform users, and the price of the FTX dropped dramatically.
Following this, FTX native cryptocurrency FTT and other cryptocurrencies’ value have been hit hard. Bitcoin is currently trading at USD 16,763.33, and other cryptos Ethereum and Solana, are also traded on low volume.
What happened with FTX?
On November 14, cryptocurrency exchange platform FTX filed for bankruptcy in the US court.
With a few other companies were founded and run by sam- Bankman-Fried. The FTX tokens collapse has been the biggest casualty of the crypto industry.
The FTX collapse last week exposed a big loophole in the system. Last week the company filed for bankruptcy after the users withdrew their funds and chief executive officer Sam Bankman-Fried resigned.
FTX new CEO John Ray III said he has never seen such a failure of corporate control. I have never seen such failure in my life and the absence of trustworthy financial information, ray said.
In January 2022, FTX was one of the biggest crypto exchange platforms, with a total value Of $32 billion. It recent crash also triggered its investigation in US, Japan, Turkey, and other regulatory countries.
FTX has wide reach among the crypto exchange platforms, and its crash is a big shock for the crypto industry.
FTX and its well-known founder, Sam Bankman-Fried, is a popular names in the crypto world. The exchange soon became a $30-billion entity and the second largest crypto exchange platform: Now it is facing bankruptcy. Concerns about the mishandling of the funds led FTX to run out of an $8 billion liquidity shortfall.
Between January to October 2022, The FTX only accounted for 0.04 shares of crypto transaction value in Indonesia. However, in the current situation and FTT’s current value, bappebti intends to review the list of registered cryptos being traded on the Indonesian domestic crypto exchange platform. Last week, authorities of Jakarta indicated that they would transfer crypto supervision to the county’s Financial Services Authority to strengthen the crypto regulations.