Cryptocurrency Exchange FTX Files for Bankruptcy, CEO Sam Bankman-Fried Resigns in Disgrace

Sam Bankman-Fried’s cryptocurrency exchange, FTX, has reportedly filed for Chapter 11 bankruptcy in the United States after a week of significant scandals and upheaval in the cryptocurrency space. The crypto boss and Democratic megadonor popularly known as “SBF” later stepped down.

CNBC reports that cryptocurrency exchange FTX has filed for Chapter 11 bankruptcy in the United States after a week of turmoil in the cryptocurrency space. Breitbart News previously reported that crypto exchange Binance backed out of plans to acquire rival platform FTX, leaving the company on the brink of collapse.

Sam Bankman-Fried, Founder and Managing Director of FTX Cryptocurrency Derivatives Exchange, speaks at the Institute of International Finance (IIF) Annual Members Meeting in Washington, DC, U.S., Thursday, October 13, 2022. The theme for this year’s conference is “The Search for Stability in a Time of Uncertainty, Realignment, and Transformation.” Photographer: Ting Shen/Bloomberg via Getty Images

Within days, FTX went from a $32 billion valuation to bankruptcy as its cash evaporated, customers demanded their money, and Binance officially ended a deal to buy the FTX. company.

In a rambling Twitter thread that attempts to explain the current state of FTX, Democratic CEO and megadonor Sam Bankman-Fried wrote, “I’m sorry. This is the most important thing. I screwed up and I should have done better.

This week, Anthony Scaramucci, the founder of SkyBridge Capital and notorious Trump critic, reportedly traveled to the Bahamas to help Bankman-Fried as a friend and investor. Scaramucci said that upon his arrival, the company seemed to have serious problems far beyond a simple cash flow problem. He didn’t notice any mishandling when he and other investors evaluated FTX as a potential trading partner.

Scaramucci said on CNBC’s Squawk Box on Friday morning: “Fooled, I guess that’s the right word, but I’m very disappointed because I love Sam. I don’t know what happened because I was not an insider at FTX.

FTX issued a bankruptcy press release on Twitter:

Learn more about CNBC here.

Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship issues. Follow him on Twitter @LucasNolan


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