Crypto exchange FTX files for bankruptcy, CEO steps down

By Ovunc Kutlu

ANKARA (AA) - The troubled cryptocurrency exchange platform FTX filed for bankruptcy on Friday, while its CEO has stepped down amid the firm's financial turmoil that has also caused a sudden meltdown in the crypto market.

The firm said in a statement on Twitter that FTX Group, which includes quantitative trading firm Alameda Research and 130 additional affiliated companies, has filed for Chapter 11 bankruptcy in the US.

It said CEO Sam Bankman-Fried has resigned from his role as CEO but will remain to assist transition as he is replaced by John J. Ray III.

The Chapter 11 filing will provide "the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders," the statement said. The company ensured "transparency" for all related parties.

The announcement comes as FTX, the world's third-largest cryptocurrency exchange by volume, is facing investigations in the US from the Justice Department and Securities and Exchange Commission (SEC).

FTX was once valued at $32 billion, but it asked Binance, the world's biggest cryptocurrency exchange by volume, for help Tuesday for a buyout. While Binance co-founder and CEO Changpeng Zhao said FTX has "a significant liquidity crunch," the company announced Wednesday that the deal will not go through.

Bankman-Fried apologized to investors in a series of tweets Thursday, saying "I'm sorry. That's the biggest thing. I (expletive) up, and should have done better ... Because at the end of the day, I was CEO, which means that *I* was responsible for making sure that things went well. *I*, ultimately, should have been on top of everything. I clearly failed in that."