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FTX files for bankruptcy - Bankman-Fried steps down as CEO

Published 12/11/2022, 02:22 am
Updated 12/11/2022, 02:22 am

By Sam Boughedda

FTX's Sam Bankman-Fried has stepped down as CEO of the company while FTX itself has filed for Chapter 11 bankruptcy in the US, according to a statement by the cryptocurrency exchange posted on Twitter.

Bankman-Fried is being replaced by John J. Ray III, although the company said he will stay to assist with the transition. In addition, Alameda Research and "approximately 130 additional affiliated companies" have commenced voluntary proceedings.

The exchange's new Chief Executive, Ray, said in the statement that 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."

"The FTX Group has valuable assets that can only be effectively administered in an organized, joint process. 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," added Ray.

Ray also explained that stakeholders should "understand that events have been fast-moving and the new team is engaged only recently," while they should review the materials filed on the docket of the proceedings over the coming days for more information.

The announcement tops off an extraordinary collapse for the cryptocurrency exchange, which has gone from having a $32 billion valuation to bankruptcy within just a few days.

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