FTX Declares Bankruptcy

Crypto exchange FTX has issued an official press release announcing the start of voluntary bankruptcy proceedings in the US, with CEO Sam Bankman-Fried stepping down.

The press release reports that FTX and its affiliated cryptocurrency trading fund Alameda Research and around 130 other companies have begun voluntary bankruptcy proceedings. An orderly process to value and monetise the assets for the benefit of all concerned should begin in a Delaware court.

I'm really sorry, again, that we ended up here,

said FTX founder Bankman-Fried in a series of tweets after the bankruptcy proceedings began.

He added that filing for bankruptcy "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."

John J Ray III has been appointed to replace Bankman-Fried as CEO and will facilitate an orderly transition.

FTX struggled to raise about $9.4 billion from investors and competitors as the exchange tried to save itself after withdrawing customer funds. However, some investors, including Sequoia and SoftBank, have already zeroed in on FTX's investment.