- Crypto is in chaos after FTX files for bankruptcy.
- Sam Bankman-Fried has stepped down as the firm`s CEO.
- SBF recently apologized for the ongoing turmoil.
The once third-largest cryptocurrency exchange FTX has lost its reputation over the past week. The troubled firm has just revealed that it has filed for Chapter 11 bankruptcy in the United States.
Former Enron turnaround expert John J. Ray III has been named as the new CEO of FTX following the resignation of Sam Bankman-Fried, the company’s founding CEO.
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.
CEO John J. Ray III.
It is important to note that Bankman-Fried will stay on at the business to help Ray make the transition to the executive position.
In total, the Chapter 11 petition included more than 130 FTX-linked firms.
The action brings to an end a tremendous week for FTX, which was previously among the leading figures in the cryptocurrency industry. The corporation was valued at $32 billion before the week began. Conversely, customers sought their money back, and liquidity started to disappear, causing FTX to collapse.
“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,” said new CEO John J. Ray III.
Bankman-Fried on his side apologized for the ongoing situation Thursday, Tweeting;
I’m sorry. That’s the biggest thing. I fucked up, and should have done better.
Alameda Research, FTX’s sister firm, is currently “winding down trade,” according to Bankman-Fried, who added that this won’t have an impact on FTX customers in the United States.
He says that FTX International is solely to blame for the liquidity shortage. “FTX US, the U.S.-based exchange that accepts Americans, was not financially impacted by this shitshow. It’s 100% liquid.” – SBF said
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