Sam Bankman-Fried’s cryptocurrency exchange FTX has reportedly filed for Chapter 11 bankruptcy in the U.S. following a week of significant scandals and upset in the cryptocurrency space. The crypto boss and Democrat megadonor popularly known as “SBF” subsequently resigned.
CNBC reports that the cryptocurrency exchange FTX has filed for Chapter 11 bankruptcy in the U.S. following a week of turmoil in the cryptocurrency space. Breitbart News previously reported that the crypto exchange Binance backed out of its plans to acquire rival platform FTX leaving the firm on the brink of collapse.
Sam Bankman-Fried, founder and chief executive officer of FTX Cryptocurrency Derivatives Exchange, speaks during the Institute of International Finance (IIF) annual membership meeting in Washington, DC, US, on Thursday, Oct. 13, 2022. This year’s conference theme is “The Search for Stability in an Era of Uncertainty, Realignment and Transformation.” Photographer: Ting Shen/Bloomberg via Getty Images
Within a few days, FTX plummeted from a $32 billion valuation to now facing bankruptcy as its liquidity evaporated, customers demanded their money back, and Binance officially terminated an agreement to purchase the firm.
In a rambling Twitter thread that attempts to explain the current state of FTX, CEO and Democrat megadonor Sam Bankman-Fried wrote, “I’m sorry. That’s the biggest thing. I fucked up, and should have done better.”
This week, Anthony Scaramucci, the founder of SkyBridge Capital and notorious Trump critic, reportedly traveled to the Bahamas to assist Bankman-Fried as both a friend and an investor. Scaramucci said that when he arrived, the company appeared to be in serious trouble far beyond a simple liquidity issue. He did not notice any mishandling when he and other investors evaluated FTX as a potential business partner.
Scaramucci said on CNBC’s Squawk Box Friday morning: “Duped I guess is the right word, but I am very disappointed because I do like Sam. I don’t know what happened because I was not an insider at FTX.”
FTX posted a press release about the bankruptcy to Twitter:
There it is.@carlquintanilla pic.twitter.com/6CcjT9RNO2
— Ivan the K™, also on Mastodon (@IvanTheK) November 11, 2022
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan
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