Beleagured crypto exchange FTX said Friday that it filed for bankruptcy and that its CEO Sam Bankman-Fried stepped down, just days after revealing a devastating financial crunch that has started to take down the broader digital currency market.
“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,” John Ray III, the company’s new CEO,The bankruptcy filing was poised to deal another blow to the crashing crypto market and further destroy the industry’s standing in Washington, where FTX and political megadonor Bankman-Fried in recent months led a campaign to influence emerging laws and regulations.
“The FTX Group has valuable assets that can only be effectively administered in an organized, joint process,” said Ray, who was also involved in winding down Enron. “I want to ensure 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.”
FTX’s U.S. operation, which Bankman-Fried claimed Thursday had been “not financially impacted by this shitshow,” is among the entities seeking bankruptcy protection. A source with knowledge of the situation said that “there aren’t many people left” at the company’s U.S. operation.
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And it's gone....
Given the WeWork x-ceo outcome, we'll look forward to seeing him back in banking soon.🤨🧐 PSA:Because its new doesn't mean it's for you.
I warned u folks...years ago...economics
I bet that golden parachute is not made of crypto
Chapter 11 is at least not as bad as chapter 7.