London Daily

Focus on the big picture.
Friday, Mar 14, 2025

Sam Bankman-Fried steps down as FTX CEO as his crypto exchange files for bankruptcy

Sam Bankman-Fried steps down as FTX CEO as his crypto exchange files for bankruptcy

Alameda Research and approximately 130 additional affiliated companies are part of the voluntary proceedings.
Sam Bankman-Fried, founder and chief executive officer of FTX Cryptocurrency Derivatives Exchange, during an interview on an episode of Bloomberg Wealth with David Rubenstein in New York, US, on Wednesday, Aug 17, 2022.

Sam Bankman-Fried's cryptocurrency exchange FTX has filed for Chapter 11 bankruptcy in the U.S., according to a company statement posted on Twitter. Bankman-Fried has also stepped down as CEO and has been replaced by John J. Ray III, though the outgoing chief will stay on to assist with the transition.

Alameda Research, Bankman-Fried's crypto trading firm, and approximately 130 additional affiliated companies are part of the voluntary proceedings.

"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 the new FTX chief, Ray.

"The FTX Group has valuable assets that can only be effectively administered in an organized, joint process. I want to ensure every employee, customer, creditor, contract party, stockholder, investor, governmental authority and other stakeholder that we are going to conduct this effort with diligence, thoroughness and transparency," continued Ray.

He added that stakeholders should understand that events have been fast-moving and the new team is engaged only recently and that they should review the materials filed on the docket of the proceedings over the coming days for more information.

It caps off a tumultuous week for one of the biggest names in the sector.

In the space of days, FTX went from a $32 billion valuation to bankruptcy as liquidity dried up, customers demanded withdrawals, and rival exchange Binance ripped up its nonbinding agreement to buy the company. FTX founder Sam Bankman-Fried admitted on Thursday that he "f---ed up."

Anthony Scaramucci, the founder of SkyBridge Capital and short-time Trump communications director, flew to the Bahamas this week to help Bankman-Fried as an investor and friend. When he got there, he says, it appeared beyond the point of a simple liquidity rescue. He said he didn't see evidence of this mishandling when he and other investors first screened FTX as a potential business partner.

"Duped I guess is the right word, but I am very disappointed because I do like Sam," Scaramucci said on CNBC's Squawk Box Friday morning. "I don't know what happened because I was not an insider at FTX."

The Chapter 11 proceedings exclude the following subsidiaries: LedgerX LLC, FTX Digital Markets Ltd., FTX Australia Pty Ltd., and FTX Express Pay Ltd.
Newsletter

Related Articles

0:00
0:00
Close
Meta Set to Introduce Community Notes Feature in March as Part of New Content Moderation Approach
Trump Family in Discussions for Investment in Binance
UK Prime Minister Suggests Significant Changes to the Governance of the National Health Service.
France Takes Strong Stance Against Potential US Tariffs on Alcoholic Drinks
Donatella Versace to Resign as Creative Director Following Almost 30 Years.
Trump's Ambassador Nominee Confirmed Canada’s Autonomy in the Face of Trade Strains
Netanyahu Rejects UN Conclusions on Gaza as 'Untrue'
Trump Speaks on the Possibility of a Ukraine Ceasefire Amid Continued Tensions
Trump Reaffirms Interest in Greenland Acquisition Amid Geopolitical Issues
French Prime Minister Bayrou Declares Position Against US Tariff Menaces
These are currently increasing in the UK.
Trump's Encounter with the Irish Prime Minister Takes an Unforeseen Twist Regarding Fashion and Economic Matters.
Isabel, a Russian native, wed Zahid Ali Khan, describing it as "love at first sight." She adores him for his character, not his $740 million fortune.
Chair Refers to Transgender Representative as 'Mr. McBride' During Congressional Meeting
The ICC's Revenge on Behalf of Drug Dealers, Against Philippine President Duterte, Who Fought Them and Saved 100 Million Filipinos from the Drugs-Death Industry—ignoring the fact that every victory comes at a cost
Canada Expresses Concerns Regarding U.S. Trade Policies Before G7 Meeting
FBI Alerts of Increasing Smishing Scams Aiming at Mobile Users
World Bank Officials Facing Examination for Travel-Related Carbon Emissions
EU and Canada Declare Countermeasures in Response to U.S. Steel and Aluminum Tariffs
Tiger Woods and Elin Nordegren: An In-Depth Exploration of Their Marital Struggles and Current Co-Parenting Efforts
Ex-Philippine President Rodrigo Duterte Detained in Manila Under ICC Warrant
Mark Carney Chosen as Head of Canada's Liberal Party, Poised to Assume Role of Prime Minister
Russia Kicks Out British Diplomats in Escalated Tensions
Significant Rescue Effort in Progress Following Collision Between Tanker and Cargo Ship in the North Sea
Pope Francis Exhibits Signs of Recovery, Yet Remains Hospitalized
Report of Radioactive Coolant Leak at Europe’s Largest Nuclear Reactor
Trump Administration Launches Self-Deportation App for Undocumented Immigrants
Syria Wraps Up Military Campaign Amid Extensive Violence and Large-Scale Executions
Trump Remarks on the Arrest of a Pro-Palestinian Student at Columbia University
Former Labour MP Mike Amesbury to Resign Following Assault Conviction
Chancellor Rachel Reeves Prepares for Spring Statement Amid Economic Challenges
Home Secretary Denies Public Inquiry into Sir David Amess's Murder
UK Energy Bills to Increase by 80 Pence to Support Discounts for Households Near Pylons
Russian Teacher Under Investigation After Explicit Content Incident in Classroom
Poland Plans Comprehensive Military Training for All Adult Males Amid Enhanced Defense Initiatives
Lithuania Withdraws from Cluster Munitions Convention Amid Security Concerns
Escalating Vandalism Targets Tesla Amid Political Controversies
Former Security Adviser Cautions That UK Troop Presence in Ukraine May Last for Years
Demonstrations Break Out as Individual Ascends Big Ben Carrying Palestinian Flag
Reform UK MP Rupert Lowe Suspended Amid Allegations of Violence and Bullying
Private spacecraft Athena has successfully landed close to the Moon's south pole.
Trump Administration Unveils Gold Card Visa Program Exempting Foreign Assets from U.S. Taxation
Trump Holds White House Summit for Cryptocurrency Leaders Amid Financial Scandals
Ukraine's Foreign Minister Highlights the Importance of the US in Attaining Peace
Trump Discovers Negotiating with Russia More Manageable than with Ukraine During Ongoing Conflict
Google Eliminates Women's History Month and Various Cultural Celebrations from Calendar App
Pope Francis Offers Thanks Despite Continuing Health Issues
King Charles III Reveals Curated Playlist on Apple Music in Anticipation of Commonwealth Day.
Disney's Biggest Cruise Ship Set to Debut in Singapore
Pamela Bach-Hasselhoff, the former 'Baywatch' star, tragically took her own life at the age of 62.
×