Cryptocurrency firm FTX on Friday announced that it has filed for bankruptcy in the United States. The world’s second-largest cryptocurrency firm also said that its Chief Executive Officer Sam Bankman-Fried has stepped down. He will be replaced by John Ray.
“FTX Group has commenced voluntary proceedings under Chapter 11 of the United States Bankruptcy Code in the District of Delaware in order to begin an orderly process to review and monetise assets for the benefit of all global stakeholders,” the company said in a statement.
Chapter 11 of the United States Bankruptcy Code allows a company to restructure its debts under the supervision of the court while continuing operations.
Press Release pic.twitter.com/rgxq3QSBqm
— FTX (@FTX_Official) November 11, 2022
The development came after cryptocurrency platform Binance agreed to buy FTX on Wednesday, but backed down a day later.
Binance had said that it aborted the deal after it was made aware of the mishandling of customer funds and alleged investigations by United States agencies against FTX.
As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of https://t.co/FQ3MIG381f.
— Binance (@binance) November 9, 2022
On Friday, Ray said that filing for bankruptcy will give FTX…