Crypto collapse: 'Gold standard' FTX files for bankruptcy, CEO resigns
Sam Bankman-Fried
One of the biggest and most influential companies in the cryptocurrency sector, FTX Group, announced on Friday that it had filed for bankruptcy in the US and that its CEO had quit.Sam Bankman-Fried, the 30-year-old crypto genius behind the exchange, will stay on, according to FTX, to help with a smooth transition.
Included in the bankruptcy proceedings are FTX US, 130 other sister firms, and FTX's cryptocurrency hedge fund Alameda.
Many exchange staff are anticipated to continue on to run the business under Chapter 11, according to FTX, which said that John Ray III has been named the new CEO.
FTX will have the opportunity to "assess its situation and develop a process to maximize recoveries for stakeholders," according to Ray.
The collapse of FTX, which seemed inconceivable only a few days ago, is upending the whole cryptocurrency sector. After significant concerns regarding the state of the FTX balance sheet were raised last week, it was precipitated by a crisis resembling a bank run.
Shan Jun Fok, co-founder of Moonvault Partners, a crypto investment firm based in Hong Kong said, “Everyone’s a little bit in shock. A lot of people trusted FTX as the gold standard.”
)
Xi Jinping's new AI bloc: China launches 'World AI Body' with Pakistan and Russia in, India out
&im=FitAndFill=(700,400))
Why the S-400 uses solid rocket fuel instead of liquid fuel
)
Explained: Why Rodri won the FIFA World Cup Golden Ball over Lionel Messi
)
Japan is selling a refrigerator to cool the human body for Rs 9 lakh. It is already a hit in Tokyo
)
Revealed! The hidden ritual Marc Cucurella performed before Spain won the FIFA World Cup
)
Mumbai court gives life sentences to 44 Somali pirates despite mercy plea
)
US-Iran conflicts: Houthis announce maritime blockade on Saudi Arabia, Iran attacks MQ-9 drone hangar | Gravitas
)
‘Iran can survive sanctions, but can’t truly live’: Dy FM warns of economic cost of war
)
Sonam Wangchuk's connection with George Soros and Ford Foundation explained!
)
‘Netanyahu will not be arrested in any way, shape, or form in US’: Trump’s counter to Mamdani
)
'There is no need for...': PM Modi takes a veiled dig at Rahul Gandhi, sends big message amid Parliament March
)
FACT CHECK: Was Abhijit Dipke detained during CJP's Parliament march? Here's what police say
)
UP BTech gold medalist dies by suicide after failing in nearly 50 govt job attempts, leaves note for father
)
'Could be bombed at any moment': What Iran's Araghchi told Trump envoy Witkoff during negotiations
)
Jail over Khamenei post: J&K youth returns home after 3 months in Saudi custody
)
Salman Khan breaks silence on health concerns after viral Mumbai appearance
)
'George Soros playbook': Understanding the foreign funding network around Sonam Wangchuk
)
Indus treaty can no longer function in its current form, says India; plans 5,500 mw of new J&K hydro projects
&im=FitAndFill=(700,400))
New OTT releases this week (July 20-26, 2026): Musafir Cafe, Adarsh Baal Vidyalaya, 72 Hours- 5 new titles coming on Netflix, Prime Video and more
&im=FitAndFill=(700,400))
2026 FIFA World Cup awards: Full list of Golden Boot, Golden Ball, Golden Glove and every major winner
)
US-Iran war: Report suggests US lost 42 aircraft, including fighter jets, reaper drones
)
JD and Usha Vance welcome fourth child: Who serves as acting US vice president during Vance's paternity leave?
&im=FitAndFill=(700,400))
Spain World Cup victory parade in Madrid: Champions celebrate second FIFA World Cup title with over million fans
)
Heavy sanctions loom over Argentine players after ugly brawl following final whistle in World Cup final
)
As Russia pounds Ukraine, Kyiv grapples with a growing manpower shortage in the military | Gravitas
)
Truck loaded with stones, metro stations closed: What's happening at Jantar Mantar now
&im=FitAndFill=(700,400))
Why US fighter jets use seamless bubble canopies compared to Russian jets
&im=FitAndFill=(700,400))
Why the F-22’s cockpit glass is thicker than a standard fighter jet
)
Student union leaders call off hunger strike at Jantar Mantar after civil society appeal, but protest continues
)
Tulsi Gabbard's brother Batarti accused of luring children to hotel room in Hawaii
)
Argentina's racism problem: How football chants reflect a deeper historical legacy
)
US strikes Iran, sirens heard in Kuwait, one American soldier killed in Iraq: What's happening in West Asia
)
'What is wrong...': Anna Hazare breaks silence on Sonam Wangchuk's protest, makes an appeal to Centre
Currently, regulators are working feverishly to determine what went wrong, and some lawmakers are calling for a crackdown.
Also Read:Moody's cut India's GDP growth projections for 2022 to 7 per cent
On Thursday, the Bahamas' securities regulators, where FTX.com is headquartered, froze a portion of the exchange's assets. The Justice Department and Securities and Exchange Commission are both looking into FTX, according to a story in The Wall Street Journal. The DOJ declined to comment, and the SEC stated that it does not comment on whether or not investigations are underway.
Bankman-Fried, whose fortune reportedly amounted to $25 billion but has since disappeared, has been one of the faces of the cryptocurrency sector. He was revered as the "white knight" of the cryptocurrency sector, saving faltering businesses. Elite investors like BlackRock and Sequoia Capital supported FTX, which quickly became one of the largest cryptocurrency exchanges in the world.
(with inputs from agencies)