Crisis-struck cryptocurrency platform FTX has gone bankrupt in the United States and its chief executive Sam Bankman-Fried has resigned, it said.
Sam Bankman-Fried, co-founder of cryptocurrency platform FTX, has long been a vocal advocate for smoother access to the crypto market for the general public, particularly in the United StatesCrisis-struck cryptocurrency platform FTX has gone bankrupt in the United States and its chief executive Sam Bankman-Fried has resigned, it said Friday, the latest blow in a saga that has reverberated across the digital currency landscape.
Chapter 11 is a US mechanism allowing a company to restructure its debts under court supervision while continuing to operate.Bankman-Fried issued a"sincere" apology Thursday, adding FTX would do"everything we can to raise liquidity." "Stakeholders should understand that events have been fast-moving and the new team is engaged only recently."
The turmoil at FTX, at one point valued at $32 billion, is a spectacular reversal of fortune for the founder and one-time cryptocurrency wunderkind. Specialist media site CoinDesk reported that 40 percent of Alameda's balance sheet comprised FTX's FTT tokens, raising concerns of a potential conflict of interest.
The regulator, which does not usually comment on ongoing investigations, did not respond to AFP's request for comment Friday, nor did the Department of Justice.
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