FTX files for bankruptcy, CEO Sam Bankman-Fried resigns
FTX has officially announced they filed for bankruptcy, after not being able to solve the liquidity crisis. Moreover, CEO Sam Bankman-Fried resigned.
FTX, the third largest cryptocurrency exchange in terms of trading volume, filed for bankruptcy. The former CEO of the company, Sam Bankman-Fried, resigned from its position. With this news, Bitcoin and Ethereum fell sharply.
Inevitable dissolution, FTX filed for bankruptcy
FTX's founder and CEO, Sam Bankman-Fried has resigned and John J. Ray III has been appointed CEO. According to a statement released by FTX, approximately 130 additional affiliated companies, including FTX US and Alameda Research, have also begun the bankruptcy process. It stated that the bankruptcy proceedings do not include FTX Digital Markets, the exchange's Bahamian subsidiary, its US platforms LedgerX, FTX Australia, or FTX Express Pay.
“The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders,” Bankman-Fried said in the statement.
Press Release pic.twitter.com/rgxq3QSBqm
— FTX (@FTX_Official) November 11, 2022
According to details, liquidity crisis led to dissolution of FTX. Along with Binance's withdrawal from FTX deal, one the biggest crypto exchange FTX inevitably filed for bankruptcy. Following this, Bitcoin fell %6 to $16,500 whereas Ethereum fell %6 to $1215.00
