Crypto Giant FTX Files for Bankruptcy, CEO Resigns

FTX, the beleaguered cryptocurrency exchange, filed for bankruptcy protection on Friday, and its Cheif Executive Sam Bankman-Fried resigned.

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FTX US, FTX's crypto hedge fund Alameda and about 130 other sister companies are included in the Chapter 11 proceedings.

John J. Ray IlI has been named as the group's new CEO, while Bankman-Fried will remain to assist in the transition.

Ray said bankruptcy protection will give FTX the chance to "assess its situation and develop a process to maximize recoveries for stakeholders."

In its bankruptcy filing, FTX says it has between $10 billion and $50 billion of estimated liabilities and assets with more than 100,000 creditors. It is the largest crypto-related bankruptcy ever, and a demise remarkable for its swiftness as well as its size, according to The Wall Street Journal (WSJ).

As reported, the bankruptcy will leave Sequoia Capital, Thoma Bravo and other investors with huge losses.

Bankman-Fried wrote on Twitter roughly an hour after the bankruptcy announcement that he was "shocked to see things unravel the way they did earlier this week."

Fazzaco reported and reviewed the recent events at FTX​.