FTX Files for Bankruptcy

FTX, Sam Bankman-Fried’s cryptocurrency exchange, has filed for bankruptcy. According to a statement posted by the company on Twitter, they have filed for Chapter 11 bankruptcy protection in the United States.

CNBC reported that “Bankman-Fried has stepped down as CEO and has been succeeded by John J. Ray III, though the outgoing chief will stay on to assist with the transition.” Ray told CNBC that the “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. FTX Group has valuable assets that can only be effectively administered in an organized, joint process. I want to assure every employee, customer, creditor, contract party, stockholder, investor, governmental authority and other stakeholder that we are going to conduct this effort with diligence, thoroughness and transparency.”

It was reported that in just a matter of a few days, FTX went from a $32 billion valuation to bankruptcy, and customers in response, “demanded withdrawals and rival exchanges.” According to VOX, Sam Bankman-Fried, said in a later interview that he ultimately “regretted his decision to file for bankruptcy.”