FTX files for bankruptcy, Sam Bankman-Fried steps down from CEO role

FTX, alongside 130 affiliated companies including FTX.US and Alameda Research, has filed for Chapter 11 bankruptcy amid the liquidity crunch.

Press Release pic.twitter.com/rgxq3QSBqm

— FTX (@FTX_Official) November 11, 2022

CEO Sam Bankman-Fried also resigned from his position and will be replaced by John Ray III.

According to the Nov. 11 press statement, SBF would continue to assist the new CEO to ensure an orderly transition. The statement also stated that employees in the company would continue to act in their various capacities.

Speaking on the development,  Ray said:

“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. Stakeholders should understand that events have been fast-moving and the new team is engaged only recently. Stakeholders should review the materials filed on the docket of the proceedings over the coming days for more information.”

FTT is down 22% following the news, according to CryptoSlate data.

Journalist at CryptoSlate

Oluwapelumi is a believer in the transformative power Bitcoin and the blockchain industry holds.