Bankman-Fried resigns as CEO of FTX, bankruptcy proceedings start

In a note issued on the FTX official Twitter account this morning, FTX stated that Sam Bankman-Fried will be stepping down from his role as CEO of the FTX Group.

According to the memo, around 130 firms associated with Bankman-FTX Fried’s Group have also initiated voluntary bankruptcy procedures.

New CEO John J. Ray III said that FTX has “valuable assets that can only be successfully handled in an organized, collaborative process” and emphasized that LedgerX LLC, FTX Digital Markets Ltd, FTX Australia Pty Ltd, and FTX Express Pay Ltd. are not included in the Chapter 11 proceedings.

Ray has served as CEO, chief restructuring officer, and in other comparable capacities for a number of public and private firms, including Enron Corp., Fruit of the Loom, and Nortel Networks.

The FTX bankruptcy followed claims of a $9 billion hole in the company’s financial sheet, according to some estimates.

In the previous two weeks, Bankman-$32 Fried’s billion corporations crumbled amid accumulating evidence that the connection between FTX and Alameda Research, the trading arm he also co-founded, was very unstable. Regulatory and legal authorities are now investigating this arrangement and the accusation that FTX borrowed client cash from Alameda, which was then used to place dangerous crypto wagers.

Binance abandoned its ambition to purchase FTX, announcing through Twitter on Wednesday afternoon that it will not pursue the acquisition. According to a Binance statement, the decision was “the consequence of business due diligence as well as the most recent press stories alleging mismanaged client cash and purported US government investigations.”

Thursday on Twitter, Bankman-Fried apologized for FTX’s downfall, prompting his resignation. Bankman-Fried noted on Twitter that the firm was in discussions with “a number of stakeholders” as it sought liquidity.

Also Read: Ripple Executive Has Made A Surprising Proposal To FTX Workers