Sam Bankman-Fried Resigns as Ceo After His Cryptocurrency Exchange Declares Bankruptcy

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Last Updated on November 11, 2022 by Bitfinsider

FTX, the cryptocurrency exchange founded by Sam Bankman-Fried, has filed for Chapter 11 bankruptcy in the United States, according to a company statement released on Twitter. Additionally, Bankman-Fried has resigned as CEO and has been replaced by John J. Ray III.

Involved in the voluntary procedures are Alameda Research and roughly 130 other related firms.

It concludes a turbulent week for one of the largest companies in the industry.

In a matter of days, FTX’s worth plummeted from $32 billion to nothing as liquidity dried up, users sought withdrawals, and rival exchange Binance tore up its nonbinding agreement to acquire the company. Thursday, FTX founder Sam Bankman-Fried stated that he “f-ed up.”

This week, Anthony Scaramucci, founder of SkyBridge Capital and former director of Trump’s communications, flew to the Bahamas to assist Bankman-Fried as an investor and buddy. When he arrived, it appeared beyond the scope of a basic liquidity rescue, he says. When he and other investors initially evaluated FTX as a potential business partner, he said he did not observe any signs of this mismanagement.

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