The battled cryptocurrency exchange FTX declared Chapter 11 bankruptcy, reports Bloomberg. CEO Sam Bankman-Fried resigned from his leadership position at the helm of the company, passing on the CEO role to John J. Ray III, a lawyer experienced with leading companies such as Enron Corp. through bankruptcies.
The recent turn marks a big plunge in Sam Bankman-Fried’s career, who climbed up the entrepreneurial stairs to become one of the most powerful crypto businessmen. With the downfall of FTX, he will be unable to repay deposits to many crypto investors.
The fallout of the bankruptcy is spreading into the wider crypto ecosystem and affecting companies like BlockFi, which suspended withdrawals.