FTX (along with its international platform, the independent FTX.us exchange, and Alameda Research) couldn't come up with the money to satisfy customers.
Sam Bankman-Fried, the company's founder and CEO, has resigned from his post as the company prepares to file for Chapter 11 in the US. A total of 134 corporate entities are included in today's announcement as well as the appointment of Stephen Neal as chairman of the board for FTX and Alameda.
Blockfi froze customer withdrawals as a result of the FTX problems.
Bankman-Fried's personal assets peaked at $26 billion in March of this year and then plummeted to zero over a few days. According to The Wall Street Journal, the founder used $10 billion in customer funds from the exchange to support his other business. SBF said he fucked up and should have done better, but didn't say how the shortfall happened.
SBF said in a thread that he was shocked to see things unraveling. I want to make sure that I get it right when I write a full post on the play by play.
The reported $8 billion hole in the company's balance sheet was caused by a liquidity crunch spurred by a report about the arrangement and a statement from the founder of the company.
Bankman-Fried would stick around to participate in an orderly transition. The investors in FTX have already marked down the value of their holdings to $0 as they wait to find out if there is any value left. On Friday morning, the Mercedes AMG F1 team announced a suspension of its sponsorship deal with FTX, although there is no word on other sports partnerships.
John J. Ray III is the new CEO of the FTX Group. I wanted to make sure that every employee, customer, creditor, contract party, stockholder, investor, governmental authority and other stakeholder that we are conducting this effort with diligence, thoroughness and transparency.
Sir Lewis Hamilton's F1 car will not bear FTX branding at this weekend's race according to Sam Bankman- Fried.
All Rights Reserved © 2024
