Cryptocurrency Exchange FTX Will Start Bankruptcy Procedure In US, CEO Decided Sam Bankman Fried Resignation, after a liquidity crisis hit the cryptocurrency platform and led to the intervention of regulators around the world.
The struggling cryptocurrency exchange has struggled to raise billions to avoid a meltdown, despite being subject to intense regulatory scrutiny.
FTX, its cryptocurrency trading fund Alameda Research, and about 130 other companies have entered voluntary Chapter 11 bankruptcy proceedings in Delaware, the company said in a statement on Friday, shared via a tweet.
John J Ray III was named CEO of the group, following Bankman-Fried’s resignation, but the latter would help in an orderly transition.
The week-long “saga” that began with FTX faltering and an abandoned acquisition deal by rival Binance has caught up with Bitcoin and other tokens that are already struggling.
Citing sources, Reuters reported that FTX was scrambling to raise around $ 9.4 billion from investors and competitors as the popular cryptocurrency exchange tried to save itself after massive customer withdrawals.
The impasse is a quick setback for 30-year-old Bankman-Fried, a famous name in the world of cryptocurrencies whose fortune Forbes estimated at $ 17 billion just two months ago.
