FTX. Alameda file for Chapter 11 bankruptcy, SBF steps down as CEO By Investing.com
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© Shutterstock By Geoffrey Smith
Investing.com — Crytocurrency exchange FTX Group said it will seek Chapter 11 bankruptcy protection, along with the hedge fund Alameda Research and over 100 other affiliates.
FTX’s founder Sam Bankman-Fried, reported by The Wall Street Journal to be under investigation by the Department of Justic and Securities and Exchanges Commission, will step down as chief executive with immediate effect, to be replaced by John J. Ray, FTX said in a statement.
Ray said the group is taking the step to “begin an orderly process to review and monetize assets for the benefit of all global stakeholders.”
The announcement comes a day at the end of a week in which FTX suffered an irresistible depositor run after reports exposed its precarious financial position. Binance, its largest rival pulled out of a mooted rescue deal after less than a day after discovering a hole in its balance sheet reported at around $8 billion. The Securities Commission of the Bahamas, which regulates FTX’s chief exchange FTX.com, applied to place it in provisional liquidation late on Thursday.
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© Shutterstock By Geoffrey Smith
Investing.com — Crytocurrency exchange FTX Group said it will seek Chapter 11 bankruptcy protection, along with the hedge fund Alameda Research and over 100 other affiliates.
FTX’s founder Sam Bankman-Fried, reported by The Wall Street Journal to be under investigation by the Department of Justic and Securities and Exchanges Commission, will step down as chief executive with immediate effect, to be replaced by John J. Ray, FTX said in a statement.
Ray said the group is taking the step to “begin an orderly process to review and monetize assets for the benefit of all global stakeholders.”
The announcement comes a day at the end of a week in which FTX suffered an irresistible depositor run after reports exposed its precarious financial position. Binance, its largest rival pulled out of a mooted rescue deal after less than a day after discovering a hole in its balance sheet reported at around $8 billion. The Securities Commission of the Bahamas, which regulates FTX’s chief exchange FTX.com, applied to place it in provisional liquidation late on Thursday.
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