Embattled cryptocurrency exchange FTX filed for bankruptcy protection Friday after a week of catastrophic hits to the platform. The company also announced that Founder and Chief Executive Officer Sam Bankman-Fried, known as SBF, is stepping down.
The collapse of FTX this week has rippled through the entire cryptocurrency realm, tanking coin values. Bitcoin’s value dropped below $16,000 this week, a low not seen since November 2020.
“The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders,” said FTX Group’s new CEO, John J. Ray III.
Ray is a lawyer and corporate restructuring expert who oversaw the Enron liquidation after its 2001 collapse.
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