The FTX exchange declares bankruptcy after causing a storm in the cryptocurrency market

Cryptocurrency exchange FTX is set to start bankruptcy proceedings in the United States, its CEO has decided Sam Bankman Fried Step down, after a liquidity crisis hit the cryptocurrency platform and led to the intervention of regulators around the world.

The struggling cryptocurrency exchange has been struggling to raise billions in funds to stave off a crash, while being subject to intense regulatory scrutiny.

FTX, its crypto-trading fund Alameda Research, and about 130 other companies have begun voluntary Chapter 11 bankruptcy proceedings in Delaware, the company said in a statement Friday, shared via a tweet.

John J Ray III was appointed as chief executive of the group, following the resignation of Bankman-Fried, but the latter would aid in an orderly transition.

The week-long “saga” that began with the faltering of FTX and an abandoned takeover deal by rival Binance, has reached Bitcoin and other tokens that are already struggling.

Citing sources, Reuters reported that FTX was scrambling to raise about $9.4 billion from investors and competitors, as the popular cryptocurrency exchange sought to save itself after massive customer withdrawals.

The impasse represents a quick setback for 30-year-old Bankman-Fried, a famous name in the cryptocurrency world, whose fortune Forbes estimated at $17 billion just two months ago.

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