Due to a liquidity crisis at the FTX Group that has prompted intervention from regulators around the world, this famous Crypto exchange announces bankruptcy filing in the United States and the 30-year-old chief executive Sam Bankman-Fried, whose wealth was estimated by Forbes at around $17 billion just two months ago , will resign.
(Sam Bankman-Fried, CEO of FTX )
Before that, FTX Group has been struggling to raise billions of dollars to avoid bankruptcy while facing increased regulatory scrutiny.
FTX, its affiliated crypto trading fund Alameda Research and about 130 other companies have initiated Chapter 11 voluntary bankruptcy proceedings in Delaware, the company said in a statement shared via Twitter on November 11, 2022.
(10:14 PM, Nov 11, 2022, FTX group released a statement on Twitter about its bankruptcy. See below.)
At this moment, John J Ray III has been appointed CEO of the group. And Bankman-Fried has resigned but will assist with an orderly transition.
According to some report, this event has hit an already struggling bitcoin and other tokens. Bitcoin fell below $17,000 at this time.
As many clients ask for withdrawals, FXT was scrambling to raise about $9.4 billion from investors and rivals.