Crypto giant FTX to file for bankruptcy, CEO Sam Bankman-Fried steps down

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Crypto giant FTX to file for bankruptcy, CEO Sam Bankman-Fried steps down
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JUST IN: Crypto giant FTX and its affiliated companies have started the process to file for Chapter 11 bankruptcy, with founder and CEO Sam Bankman-Fried stepping down as CEO.

Over the past week, the exchange faced the equivalent of a bank run as observers and customers called into question whether the exchange was both liquid — meaning it could come up with currency on demand to pay customers looking to withdraw funds — and solvent, meaning its loans and investments were worth more than its debts.

allows a company to come up with a plan to reorganize itself and keep its business alive while it works to pay back its creditors.

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