Crypto exchange FTX has initiated US bankruptcy proceedings and CEO Sam Bankman-Fried has resigned, following a liquidity crisis.
On Friday, FTX announced on Twitter, that the company along with affiliated Alameda Research and around 130 other companies have begun Chapter 11 bankruptcy proceedings in Delaware.
Earlier this week, the crypto trading platform attempted to raise billions in funds to prevent its collapse due to a wave of withdrawals. A potential rescue deal by Binance also fell through.
FTX’s bankruptcy petition states it has $10bn to $50bn in assets, $10bn to $50bn in liabilities, with more than 100,000 creditors.
On Wednesday, Bitcoin fell to a two-year low of $15,632, before regaining some ground following the release of US inflation data.