A press release announces that crypto exchange FTX has filed for bankruptcy and its CEO Sam Bankman-Fried has resigned.
According to the announcement posted on the crypto exchange’s Twitter account, FTX, Alameda Research and 130 affiliates have filed for Chapter 11 bankruptcy in the United States.
In the press release, FTX Group’s newly appointed CEO, John J. Ray III, said:
“The immediate Chapter 11 relief is appropriate to give FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders.
The FTX Group has valuable assets that can only be effectively managed through an organized, joint process.”
FTX, no longer able to meet the withdrawal
While seeking to raise $9.4 billion to bring the crypto exchange back to normal operations, the now ex-CEO of FTX, Sam Bankman-Fried, is stepping down from his position but will assist the new management in this bankruptcy process.
In distress, the FTX crypto exchange is no longer able to meet the withdrawal requests of all its customers. The former CEO, Sam Bankman-Fried, is said to have used 10 billion of customer funds to support Alameda Research, another FTX company.
While FTX came to the aid of crypto platforms that went bankrupt, such as BlockFi or Voyager Digital, it is now FTX that finds itself in bankruptcy to the surprise of everyone.
A descent into hell for the former CEO Sam Bankman-Fried, a regular on TV shows, who declared a few days ago that “FTX is doing well”.
After stopping withdrawals on its cap, FTX asked for help from Binance, which was thinking of buying out its rival, only to withdraw from its letter of intent.
Now, FTX has no choice but to file for bankruptcy in an attempt to turn itself around through legal proceedings.
Following this announcement, the Bitcoin price is down around $16,870, click here to follow the BTC price live.