Along with this news, he also announced the change of CEO and founder Sam Bankman-Fried.
The move comes days after its biggest rival, Binance, abandoned a takeover proposal and was forced to scramble to raise some $9.4 billion from investors and rivals.
As the agreement progressed, alarms appeared such as “mishandling of client funds” and investigations that the SEC (Securities and Exchange Commission of the United States) would be carrying out, which made the interested party desist.
In this context, the rest of the cryptocurrencies are dragged down.
Crash of Bitcoin, Ethereum and the rest of the cryptocurrencies
The bitcoin falls 4.5% trading below US$ 16,800 and ethereum it does the same falling 4%, to settle below US$ 1,250.
The company also announced Bankman-Fried’s resignation from his position as CEO of FTX Group. The founder of the company leaves the executive position that will be filled by John J. Ray III.
According to official information, the company “expects that FTX employees globally will remain within the company and collaborate with the new CEO and other officials during the Chapter 11 proceedings.”
“The immediate relief of Chapter 11 is appropriate to give FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders,” said the new CEO, who assured that FTX has “valuable assets”, which can be managed effectively in a “joint and organized” process.
The crypto market crisis was unleashed after sowing doubts about the solvency and lack of transparency of FTX and the Alameda investment fund, of which Sam Bankman-Fried is CEO and founder respectively.
Confidence in FTX came crashing down when Changpeng “CZ” Zhao, CEO of Binance, announced that the Chinese exchange was going to withdraw FTTs it had on the cryptocurrency exchange, as it felt there was a “significant liquidity crisis.” “.
Subsequently, Bankman-Fried acknowledged that in just 72 hours there had been net redemptions from the platform valued at 6,000 million dollars and that FTX had difficulties in providing liquidity to its clients.
Source: Ambito
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