Cryptocurrency Exchange FTX Files For Bankruptcy, CEO Sam Bankman-Fried Resigns In Disgrace

Sam Bankman-Fried’s FTX cryptocurrency exchange has reportedly filed for Chapter 11 bankruptcy in the US after a week of major scandals and upheaval in the cryptocurrency space. The crypto boss and Democratic megadonor popularly known as “SBF” subsequently resigned.

CNBC reports that cryptocurrency exchange FTX has filed for Chapter 11 bankruptcy in the US after a week of turmoil in the cryptocurrency space. Breitbart News previously reported that crypto exchange Binance backed out of its plans to acquire rival platform FTX, leaving the company on the brink of collapse.

Sam Bankman-Fried, founder and CEO of FTX Cryptocurrency Derivatives Exchange, speaks during the annual meeting of members of the Institute of International Finance (IIF) in Washington, DC, USA, on Thursday, October 13, 2022. This year’s theme conference theme is “The Search for Stability in an Age of Uncertainty, Realignment and Transformation”. Photographer: Ting Shen/Bloomberg via Getty Images

In a matter of days, FTX plummeted from a $32 billion valuation to now facing bankruptcy as its liquidity evaporated, customers demanded their money back, and Binance officially terminated the deal to buy the company.

In a strange Twitter thread trying to explain FTX’s current situation, CEO and Democratic bigwig Sam Bankman-Fried wrote: “Sorry. That’s the biggest thing. I fucked up and I should have done better.”

This week, Anthony Scaramucci, founder of SkyBridge Capital and a notorious Trump critic, reportedly traveled to the Bahamas to help Bankman-Fried as both a friend and an investor. Scaramucci said that when he arrived, the company appeared to be in serious trouble far beyond a simple liquidity issue. He noticed no mishandling when he and other investors evaluated FTX as a potential business partner.

Scaramucci told CNBC’s Squawk Box on Friday morning: “Duped I guess is the right word, but I’m very disappointed because I like Sam. I don’t know what happened because I wasn’t familiar with FTX.”

FTX posted a press release about the bankruptcy on Twitter:

Read more on CNBC here.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan

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