Just-In: SBF Resigns, John Ray III Joins As New FTX CEO
On Friday morning, the troubled cryptocurrency exchange FTX declared that it has commenced Chapter 11 bankruptcy proceedings due to a massive liquidity crunch.
FTX’s New CEO Appointed
The firm also disclosed that former billionaire CEO Sam Bankman-Fried has resigned from his role following the liquidity crisis that forced a sudden unraveling of the exchange which was once valued at $32 billion.
John Ray III is now in charge of the debt-ridden exchange as its new CEO and will work with other “independent professionals” during the proceedings.
Ray said in a statement,
“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.”
He further stated stat, “Events have been fast-moving and the new team in place only just began.”
Read More: Breaking: FTX Exchange Files For Bankruptcy
However, according to a report from the U.S. Securities and Exchange Commission, John Ray III is registered for insider trading. More details can be found here.
What Led To FTX Filing Bankruptcy?
In what appeared to be a potential bailout of the troubled exchange, under a liquidity constraint, Binance signed a letter of intent on Tuesday to acquire its ailing rival, FTX. However, that plan failed a little more than 24 hours later following Binance’s due diligence on FTX.
The renowned crypto exchange, once a leader in its domain, has collapsed in less than a week.
- US Federal Reserve to Host Bitcoin and Crypto Payments Conference Tomorrow — What to Expect
- BREAKING: 21Shares Amends S-1 for Spot Dogecoin ETF Approval
- Analyst Predicts $10k ETH Price as Vitalik Buterin Launches Major Upgrade for Faster Proofs Systems
- Ripple, Coinbase, Among Others Meeting Democrats Ahead of Crypto ETF Approvals
- Insider Whale Opens $255M Bitcoin Longs as Trump Confirms Oct 31 Meeting With China
- Bitcoin Price Prediction as Gaussian Channel Turns Green Amid U.S.–China Trade Progress and Fed Rate Cut Hopes
- Solana Price Prediction: Analyst Notes Bearish Breakdown Amid Derivatives Slowdown
- Shiba Inu Price Eyes Recovery as Burn Rate Jumps 10,785% – Can SHIB Hit $0.000016?
- Ethereum (ETH) Price Prediction: Analyst Eyes $7,000 by Q4 as Bitmine Accumulates $281M ETH — Will History Repeat Itself?
- HYPE Price Teeters Amid Weak Technicals and Soaring Liquidations
- XRP Price Prediction As Ripple Announces $1B Treasury Plans – Is a Rebound Imminent?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
