FTX Crypto Exchange Files for Bankruptcy as CEO Bankman-Fried Resigns
Cryptocurrency exchange FTX files for Chapter 11 bankruptcy protection, citing massive liabilities and over 100,000 creditors. Founder Sam Bankman-Fried steps down as CEO and is replaced by John J. Ray III to oversee the transition.
Cryptocurrency exchange FTX files for Chapter 11 bankruptcy protection in the United States, signaling a dramatic collapse for one of the industry's largest platforms. Founder Sam Bankman-Fried resigns as chief executive and hands control over to John J. Ray III, who takes over immediately to manage the sprawling crisis.
The bankruptcy proceedings include approximately 130 affiliated companies, such as the crypto trading firm Alameda Research and the U.S. subsidiary FTX.us. Court filings reveal that the exchange holds between $10 billion and $50 billion in both assets and liabilities, with over 100,000 creditors waiting to see if they recover their funds.
The new CEO states that the immediate relief of Chapter 11 is necessary to assess the situation and maximize recoveries for all stakeholders. Ray promises to conduct a thorough and transparent joint process to organize the exchange's valuable assets during this fast-moving financial disaster.