Bankrupt FTX crypto boss resigns

NEW YORK (AFP) — Crisis-struck cryptocurrency platform FTX has gone bankrupt in the United States and its chief executive Sam Bankman-Fried has resigned, the latest blow in a saga that has reverberated across the digital currency landscape.

The filing comes Saturday after the world's biggest cryptocurrency platform Binance agreed to buy its rival earlier this week but backed out, leading market players to consider possible regulator responses.

FTX Group announced in a statement Friday that it filed for Chapter 11 bankruptcy proceedings, adding it has begun an "orderly process to review and monetize assets for the benefit of all global stakeholders."

Chapter 11 is a US mechanism allowing a company to restructure its debts under court supervision while continuing to operate.

Apology

This week's financial chaos at FTX has seen major cryptocurrencies, including bitcoin, plunge.

Bankman-Fried issued a "sincere" apology Thursday, adding FTX would do "everything we can to raise liquidity."

The cash-strapped company added in its statement that it has appointed John J. Ray as chief executive with immediate effect.

"The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation," said Ray in the statement.

"Stakeholders should understand that events have been fast-moving and the new team is engaged only recently."

"Many employees of the FTX Group in various countries are expected to continue with the FTX Group and assist Mr. Ray and independent professionals in its operations during the Chapter 11 proceedings," the statement said.

Deal falls apart

Binance agreed to buy FTX.com on Tuesday — before scrapping the takeover just a day later.

Binance chief executive Changpeng Zhao defended himself against accusations of any purposeful plot after the deal fell apart.

"FTX going down is not good for anyone in the industry. Do not view it as a win for us. User confidence is severely shaken," he tweeted.

The platform's collapse came as a shock even for an already turbulent industry.