Sam Bankman-Fried, the disgraced CEO of FTX, has resigned.
His former exchange just filed for Chapter 11 in the US, wiping out a $32 billion valuation in just a few days.
The exchange bottomed out earlier this week, only to back out of a rescue deal after getting a closer look at the books.
Is it possible that customers will get their money back? FTX has more than 100,000 debts according to the filing. The assets range from $10 billion to $50 billion.
"Duped is the right word, but I am very disappointed because I do like Sam," Anthony Scaramucci, the founder of SkyBridge Capital, told CNBC. I don't know what happened because I was not an employee.
Bankman- Fried used his wealth to give to political causes and even bail out smaller exchanges.
Effective Altruism is the idea of using data to figure out how to bring as much benefit to as many people as possible.
The idea in Bankman- Fried's case was to maximize the amount of positive impact he could have on other people.
His donations were still modest even after his fall from grace. At one point, Bankman- Fried promised to give $1 billion to the next US presidential election, but later backtracked and gave less.
The picture is not the same now that his net worth has fallen. The entire team behind FTX's philanthropy team, called FTX Future Fund, resigned earlier this week.
"We are unable to perform our work or process grants, and we have fundamental questions about the legitimacy and integrity of the business operations that were funding the FTX Foundation and the Future Fund."
Bankman- Fried admitted in a statement that he had messed up and should have done better.
Sam Bankman- Fried stepped down as FTX CEO as he filed for bankruptcy.
There is more on the saga.
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