Sam Bankman-Fried resigns as CEO and FTX declares bankruptcy



Sam Bankman-Fried's crypto exchange FTX has filed for Chapter 11 bankruptcy in the United States. The company announced in a statement on Twitter.

Sam Bankman-Fried resigns as CEO and FTX declares bankruptcy

While Sam Bankman-Fried stepped down as CEO and was replaced by John J. Ray III, the outgoing chief will assist with the leadership transition.

Some 130 additional subsidiaries are part of the proceedings, including Alameda Research, Bankman-Fried's cryptocurrency trading company, and FTX.us, the company's US subsidiary.

In the 23-page bankruptcy filing obtained by CNBC, FTX indicates it has more than 100,000 creditors, assets between $10 billion and $50 billion, and liabilities between $10 billion and $50 billion. Bankman-Fried also indicated that he would appoint Stephen Neal as the company's new chairman of the board.

"Immediate Chapter 11 relief is appropriate to provide the FTX Group with the opportunity to assess its situation and develop a process to maximise recoveries for stakeholders," said FTX's new chief, Ray.

"The FTX Group has valuable resources that can only be effectively administered in an organised and joined-up process. I want to assure every employee, customer, creditor, contractor, shareholder, investor, government authority and other stakeholders that we will conduct this effort with diligence, thoroughness and transparency," Ray continued.