FTX files for bankruptcy protection, CEO Sam Bankman-Fried steps down

FTX files for bankruptcy protection, CEO Sam Bankman-Fried steps down

FTX, Alameda, and 130 affiliated companies have commenced voluntary proceedings under Chapter 11 of the United States Bankruptcy Code. Sam Bankman-Fried has resigned from his role as Chief Executive Officer.

FTX files for bankruptcy as SBF resigns

Striving Crypto Exchange FTX has informed the public that the FTX parent firm West Realm Shires Services, Alameda Research, and approximately 130 additional affiliated companies have filed for Chapter 11 bankruptcy protection in Delaware. In its tweet hours ago, FTX Also revealed that its Chief Executive Officer Sam Bankman-Fried has stepped down.

After days of confusion and speculation during which FTX’s valuation slid from $32 billion to zero, the firm has finally declared a new course. However, the announcement does not include specific FTX-related subsidiaries such as LedgerX, FTX Digital Markets, FTX Australia, and FTX Express Pay.

FTX and its drastic decline

In the wake of the firm’s crisis, Sam Bankman-Fried (SBF), FTX’s long-time CEO, has resigned and has been replaced by an individual named John J. Ray III. According to FTX’s report:

“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.”

Things have gone soar for the one-time crypto giant over the past few days, and it continues to worsen. The recent filing represents a stunning turn for the cryptocurrency exchange, once seen as the face of the crypto industry.