FTX files for bankruptcy as Sam Bankman-Fried resigns

Darren ParkinNovember 14, 2022

3 minutes read

Less than 24 hours after FTX founder Sam Bankman-Fried offered an apology over the collapse of the exchange and promised to ‘fight to do the right thing’, the 30-year-old has now filed for bankruptcy and resigned from his position as CEO.

Only yesterday afternoon, in a series of gushing tweets about taking ultimate responsibility and being “in talks with a number of players” to help raise liquidity, he offered hope to users by claiming there were various letters of intent and terms of agreement in a drive to return funds to customers.

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A desperately slumped cryptocurrency market lifted significantly on the promise that “Every penny of that – and of the existing collateral – will go straight to users, unless or until we’ve done right by them”.

This afternoon, the markets have now been spooked into decline once more after FTX announced it was seeking bankruptcy protection in Delaware. It added that more than 100 corporate entities affiliated with FTX were also filing.

Following Bankman-Fried’s resignation, John Ray has been appointed to the role of CEO.

“The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximise recoveries for stakeholders,” the statement read.