The crisis that gripped the cryptocurrency sector has brought about some important developments.
After efforts to rescue the company, crypto exchange FTX announced that it will file bankruptcy proceedings in the United States.
Sam Bankman-Fried is the founder of the company and has resigned as chief executive officer.
John J. Ray III, the new CEO of FTX, stated that FTX’s “valuable assets can only be effectively managed in an organized, collaborative process.”
This move comes just days after Binance, a larger competitor, walked away from an acquisition proposal.
FTX was left scrambling to raise billions from investors and competitors to plug a financial gap in the exchange that could reach as high as $8bn according to multiple reports. Customers are rushing to get out.
