Brazilians Affected by FTX Collapse Come Together as a Group to Find a Solution

Several Brazilians affected by the collapse of the FTX brokerage continue to analyze the situation with caution to try to recover their cryptocurrencies stuck in the global platform.

Because there is no headquarters in Brazil, the search for cryptocurrencies can hardly yield results, according to a lawyer appointed by the live coins about the case.

Still, FTX started releasing some recordings after a deal with Justin Sun’s Tron cryptocurrency. However, the open door looks more like a trap than a real solution, some investors believe.

Brazilians with losses in FTX gather in a Telegram group to seek their rights

A group created by Brazilians on Telegram, “FTX victims“, already brings together more than 240 people with losses at the brokerage. With cryptocurrencies stuck on the platform, investors are trying to share solutions that have been found to help the community.

One of the solutions presented for withdrawals was through the Tron network, following the support of founder Justin Sun.

However, during the withdrawal window, Brazilians noticed that the value of Tron on FTX was higher than on other exchanges. That is, when exchanging cryptocurrencies for TRX, investors can withdraw, but would not find the corresponding amount on other exchanges.

According to some customer reviews, losses in value for TRX withdrawals can be as high as 70%.

Client estimates the loss of 70% of the value of their cryptocurrencies if they choose to withdraw from FTX using the Tron cryptocurrency
Client estimates the loss of 70% of the value of their cryptocurrencies if they choose to withdraw from FTX using the Tron cryptocurrency. Reproduction.
Group of FTX victims in Brazil
Group of FTX victims in Brazil. Reproduction.

FTX CEO has already jumped

FTX CEO Sam Bankman-Fried couldn’t handle the pressure of the end of his business and already announced this Friday (11) that he will be leaving his position at US global brokerage and Alameda Research.

Until then, he had maintained that the FTX operation in the United States was the only one that had no problems. Despite this, all indications are that the FTX US platform is also bankrupt, not just insolvent as the market has speculated.

It is not yet clear when customers will be able to try new withdrawals from the company, as initiating bankruptcy proceedings will result in everything being taken to US court. It’s worth remembering that this request has just been made, but authorities must accept the company’s terms and conditions in order to proceed.

In 2022, FTX will join other companies that have gone bankrupt, making it the largest broker to have gone bankrupt in the market in recent years. In the US, the pressure to regulate the sector is mounting with the end of this business.

Source: Live Coins