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Crypto exchange FTX files for bankruptcy as CEO Sam Bankman-Fried steps down

Crypto exchange FTX files for bankruptcy as CEO Sam Bankman-Fried steps down

Crypto exchange FTX files for bankruptcy as CEO Sam Bankman-Fried steps down
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By Anand Singha  Nov 11, 2022 9:36:01 PM IST (Updated)

Sam Bankman-Fried has resigned as CEO and will be replaced by John J. Ray III, though the outgoing chief will stay on to assist with the transition.

Cryptocurrency exchange FTX has voluntarily filed for Chapter 11 bankruptcy in the United States, according to a statement posted by the company. Sam Bankman-Fried has also resigned as CEO and will be replaced by John J. Ray III, though the outgoing chief will stay on to assist with the transition.

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According to a tweet from the company on Friday, FTX and its affiliated crypto trading fund Alameda Research and approximately 130 other companies have commenced voluntary Chapter 11 bankruptcy procedures in Delaware.
After traders flocked to withdraw $6 billion from the website in only 72 hours and rival exchange Binance abandoned a potential rescue arrangement, the distressed cryptocurrency trading platform had been scrambling to gather billions in dollars to avert collapse.
Following the commencement of the bankruptcy filing, the founder apologised in a series of tweets. Bankman-Fried said that the bankruptcy filing "doesn’t necessarily have to mean the end for the companies" and that he was "optimistic" the group’s new CEO would "help provide whatever is best".
An already struggling bitcoin and other tokens have been hurt by the week-long saga that began with a run on FTX and an abandoned takeover effort by rival Binance.
According to sources cited by Reuters, FTX was frantically trying to raise approximately $9.4 billion from investors and competitors as the exchange sought to save itself following customer withdrawals.
For 30-year-old crypto executive Bankman-Fried, whose wealth was estimated by Forbes to be over $17 billion just two months ago, the situation marks a drastic downturn.
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