(MENAFN- Trend News Agency) Crypto exchange FTX filed U.S. bankruptcy proceedings on Friday
and Sam Bankman-Fried stepped down as CEO, after a rapid liquidity
crisis at the cryptocurrency group that has prompted intervention
from regulators around the world, reports citing .
The distressed crypto trading platform had been struggling to
raise billions in funds to stave off collapse after traders rushed
to withdraw $6 billion from the platform in just 72 hours and rival
exchange Binance abandoned a proposed rescue deal.
Research and approximately 130 other companies have commenced
voluntary Chapter 11 bankruptcy proceedings in Delaware.
John J Ray III has been appointed to take over as CEO from
Bankman-Fried, the statement said.
'I'm really sorry, again, that we ended up here,' said FTX
founder Bankman-Fried, in a series of tweets after the commencement
of the bankruptcy filing.
In his tweets, Bankman-Fried said the bankruptcy filing 'doesn't
necessarily have to mean the end for the companies' and that he was
'optimistic' the group's new CEO would 'help provide whatever is
best'.
In its bankruptcy petition, FTX Trading said that it has $10
billion to $50 billion in assets, $10 to $50 billion in
liabilities, and more than 100,000 creditors.
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