Crypto exchange company FTX filed for bankruptcy
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The company's CEO, Sam Bankman-Fried, has filed for bankruptcy.
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FTX has filed for bankruptcy in the US.
Cryptocurrency exchange FTX has filed for bankruptcy in the US, seeking court protection as it seeks a way to return money to users.
Read next: Bitcoin crashes below $17,000 after Binance cancels FTX acquisition
The company's CEO, Sam Bankman-Fried, resigned as the chief executive, according to the company. Bankman-Fried, before the company's downfall, was in charge of the world's second-largest crypto exchange.
In a week, the FTX empire collapsed, shaking confidence in the crypto market.
"I'm really sorry, again, that we ended up here. Hopefully, things can find a way to recover," said Bankman-Fried, nicknamed the 'King of Crypto', wrote on Twitter on Friday. "I was shocked to see things unravel the way they did."
Bankman-Fried was one o the stars in the crypto field, drawing comparisons to investment magnate Warren Buffett. On Monday, his net worth was over $15 billion.
Bankman-Fried tried to organize a bailout but failed - this left FTX struggling to raise billions of dollars and many customers unable to retain their money.
The company can continue to operate if filed for bankruptcy, while also restructuring its debts under court supervision.
FTX said the goal was to "begin an orderly process to review and monetize assets for the benefit of all global stakeholders".
"The FTX Group has valuable assets that can only be effectively administered in an organised, joint process," said John J Ray III, the new CEO who has experience with high-profile bankruptcy cases.
Bankman-Fried, before sleeping on $0, was a major donor for the Democrats.
Former CEO of Megaupload Kim Dotcom commented on the news of FTX's bankruptcy in a tweet:
The FTX thief stole $1 billion from his customers and donated $100 million to Democrats.
— Kim Dotcom (@KimDotcom) November 13, 2022
10% for the big guy?
