Crypto exchange FTX filed U.S. bankruptcy proceedings on Friday and Sam Bankman-Fried stepped down as CEO, after a rapid liquidity crisis at the cryptocurrency group that has prompted intervention from regulators around the world, Trend reports citing Reuters.
The distressed crypto trading platform had been struggling to raise billions in funds to stave off collapse after traders rushed to withdraw $6 billion from the platform in just 72 hours and rival exchange Binance abandoned a proposed rescue deal.
Research and approximately 130 other companies have commenced voluntary Chapter 11 bankruptcy proceedings in Delaware.
John J Ray III has been appointed to take over as CEO from Bankman-Fried, the statement said.
"I'm really sorry, again, that we ended up here," said FTX founder Bankman-Fried, in a series of tweets after the commencement of the bankruptcy filing.
In his tweets, Bankman-Fried said the bankruptcy filing "doesn't necessarily have to mean the end for the companies" and that he was "optimistic" the group's new CEO would "help provide whatever is best".
In its bankruptcy petition, FTX Trading said that it has $10 billion to $50 billion in assets, $10 to $50 billion in liabilities, and more than 100,000 creditors.