The Bahamas-based company, which was recently valued at $32 billion, said Friday morning that it will file for Chapter 11 bankruptcy in the U.S.
Cryptocurrency exchange FTX CEO Sam Bankman-Fried has filed for bankruptcy just a day after he told investors that without an “injection” of cash, the company would have to file for bankruptcy.
The Bahamas-based company, which was recently valued at $32 billion, said Friday morning that it will file for Chapter 11 bankruptcy in the US.
Press Release pic.twitter.com/rgxq3QSBqm
— FTX (@FTX_Official) November 11, 2022
Sam Bankman-Fried has stepped down from his role and will remain in an advisory role to help with the transition, the company said. John J. Ray III has been appointed as the new CEO of the group, while Sam Bankman-Fried will remain with the group to help with its smooth transition.
The new CEO promised to conduct the bankruptcy process with “diligence, thoroughness and transparency.”
It is noted that within days, FTX went from a $32 billion valuation to bankruptcy as liquidity dried up, customers demanded their funds and rival Binance scrapped a non-binding deal to acquire it.
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