FTX files for Chapter 11 bankruptcy as CEO Sam Bankman-Fried resigns

From The Verge: Crypto’s no-good, very bad 2022 got even worse as FTX (along with its international platform, the independent FTX.us exchange, and Alameda Research), previously the world’s third-largest crypto exchange by volume, couldn’t come up with the money to satisfy customers’ withdrawal requests and then suffered an aborted acquisition attempt by a competitor.

Now, the company is filing for Chapter 11 bankruptcy in the United States while announcing that founder and CEO Sam Bankman-Fried has resigned from his post. Seamus Hughes pointed out that the bankruptcy filing itself is now available (pdf), and it lists a total of 134 corporate entities included in today’s announcement, as well as the appointment of crypto investor Stephen Neal as chairman of the board for FTX and Alameda.

The negative ripple effect across the industry started last night with Blockfi, another crypto services firm, freezing customer withdrawals as a result of the FTX problems. After the announcement, the price of Bitcoin dropped sharply before recovering slightly and remains under the $17,000 mark.

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