FTX exchange filed for bankruptcy, CEO Sam Bankman-Fried resigned

Sam Bankman-Fried, founder of cryptocurrency exchange FTX. (Photo: Bloomberg)

11/11, FTX Group announced that it has filed for bankruptcy under Chapter 11 of the US Bankruptcy Law. The FTX Group includes, FTX US, the trading company Alameda Research and “approximately 130 related companies”. Bankman-Fried founder also announced his resignation as CEO. He was replaced by John J. Ray III, though, Bankman-Fried remained to assist during the transition.

According to new CEO Ray, chapter 11 provides FTX with an opportunity to assess the situation and develop processes to maximize resilience for shareholders. Valuable company assets can only be managed effectively in a common, organized process.

The event closed off a tumultuous week for one of the biggest names in the crypto industry.

In just a few days, FTX from a company valued at $ 32 billion fell into bankruptcy due to dwindling liquidity, customers requested withdrawals, rival exchange Binance made a takeover offer and then withdrew. No one seems to be able to save FTX.

Anthony Scaramucci, founder of SkyBridge Capital, flew to the Bahamas this week to support Bankman-Fried as a friend and investor. However, when he arrived here, he admitted it did not end with a simple liquidity rescue.

In his letter to employees, Mr. Ray wrote: “We have long and hard days ahead of us.”. He called the bankruptcy move “the beginning of a journey.”

Bitcoin price immediately dropped more than $1,000 after FTX’s announcement, down to 16,500 in just a few minutes.

Du Lam (According to CNBC)

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