FTX declares bankruptcy, CEO Sam Bankman-Fried resigns

FTX, once the third-largest crypto exchange, filed for Chapter 11 bankruptcy in the U.S. Sam Bankman-Fried, founder and CEO of FTX, resigned and John J. Ray III was named CEO.

FTX declares bankruptcy, CEO Sam Bankman-Fried resigns

Photo Credit: Sam Bankman-Fried/Forbes

FTX US and Alameda Research are among 130 linked entities that have filed for bankruptcy. FTX Digital Markets, LedgerX, FTX Australia, and FTX Express Pay are not included, the exchange said.

“The immediate relief of Chapter 11 is appropriate to allow the FTX Group to examine its circumstances,” Ray added.

This announcement comes after a week of FTX’s collapse as the company sought acquisitions and fresh funding.

Binance signed an intent to acquire FTX on Tuesday. After analyzing FTX’s structure and books, Binance reneged 24 hours later.

Binance hoped to provide liquidity to FTX’s customers, but the challenges are beyond its control.

Due to business due diligence and public reports of mishandled client funds and purported U.S. agency investigations, Binance has opted not to acquire FTX.

Bankman-Fried tweeted Thursday that FTX International was seeking funding and in talks with “a number of parties.” He stated that all funds and collateral “would go to users.”

According to CoinMarketCap, FTX has slid from third to 62nd. 54th is FTX US. Kraken is the third-largest cryptocurrency exchange after Coinbase and Binance.

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