FTX to file for US bankruptcy protection, CEO resigns

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ReutersLast Updated: Nov 11, 2022, 08:09:00 PM IST

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The move comes days after larger rival Binance walked away from a proposed acquisition and left it scrambling to raise about $9.4 billion from investors and rivals.

'Poster child' no more: FTX debacle sparks investor rethink of battered crypto market — It was only a few months ago that Bankman-Fried, 30, had been seen as a crypto white knight, salvaging beleaguered crypto firms that faltered as prices cratered.

Cryptocurrency exchange FTX said on Friday it was commencing bankruptcy proceedings in the United States and Sam Bankman-Fried is resigning from his role as chief executive officer.

The move comes days after larger rival Binance walked away from a proposed acquisition and left it scrambling to raise about $9.4 billion from investors and rivals.

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The embattled company was seeking a lifeline after a liquidity crunch due to customers withdrawing funds at a frenetic pace.

It also fans concerns about the future of the crypto industry, which faces an uphill task of regaining favor among retail investors after several blowups this year.