ftx: FTX to file for US bankruptcy protection, CEO resigns

Synopsis

The move comes days after larger rival Binance walked away from a proposed acquisition and left it scrambling to raise about $9.4 billion from investors and rivals.

THE ECONOMIC TIMESIt was only a few months ago that Bankman-Fried, 30, had been seen as a crypto white knight, salvaging beleaguered crypto firms that faltered as prices cratered. Cryptocurrency exchange FTX said on Friday it was commencing bankruptcy proceedings in the United States and Sam Bankman-Fried is resigning from his role as chief executive officer.

The move comes days after larger rival Binance walked away from a proposed acquisition and left it scrambling to raise about $9.4 billion from investors and rivals.

The embattled company was seeking a lifeline after a liquidity crunch due to customers withdrawing funds at a frenetic pace.

It also fans concerns about the future of the crypto industry, which faces an uphill task of regaining favor among retail investors after several blowups this year.

Source

Updated: 11/11/2022 — 13:00