Investment firm Midas shuts down as FTX contagion continues. It has stopped trading on its platform due to huge losses, and this event made the company the latest "victim" of FTX's sudden collapse, which landed Sam Bankman-Fried in jail after his arrest earlier this year. month.
According to crypto blackboard, Midas announced a deficit of $60 million that led to the decision to discontinue its business operations. His platform lost around 60% of assets under management (AUM) after cryptocurrency company FTX crashed.
Separately, Midas said he plans to launch new centralized and decentralized finance (CeDeFi) next year. This project is a fusion between centralized and decentralized finance.
Regarding the closure of its platform, Midas will rebalance the accounts of its users by taking 55% and the rewards obtained from it. This action will allow users to withdraw around 45% of their assets so they don't lose their coins or funds.
The decision to shut down the Midas Investments cryptocurrency platform was announced personally by the company's founder and CEO, Iakov 'Trevor' Levin. He shared that Midas had $250 million in assets in May, but the crypto market breakup triggered by the failure of Terra's UST stablecoin led to the company losing $50 million.
The situation worsened when, in November, the FTX cryptocurrency exchange suddenly declared bankruptcy. On top of this, crypto lender Celsius, who is one of their clients, has also defaulted. These events led to the withdrawal of more than 60% of AuM on the Midas platform.
โIt is with a heavy heart that I write to you today to announce that the Midas platform is being shut down,โ Levin said in a statement. blog post earlier this week. โBased on this situation and the current conditions of the CeFi market, we have made the difficult decision to shut down the platform. I want to apologize to all Midas owners who have been affected by this situation."
The Midas boss further said: Despite the damage caused by this event, this is the only way forward for Midas to build something relevant to this new market. I promise to do my best to create a new project that is free from the fixed return model and based on reality and transactional business so that it can benefit from our brainpower during the next bull cycle."
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