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FTX to file for U.S. bankruptcy protection, CEO resigns

Nov 11 (Reuters) – Cryptocurrency exchange FTX said on Friday it was starting bankruptcy proceedings in the United States and Sam Bankman-Fried stepped down from his role as chief executive officer.

The move comes days after larger rival Binance walked away from a proposed acquisition, leaving it struggling to raise about $9.4 billion from investors and rivals.

The embattled company was looking for a bailout after a liquidity crisis due to customers withdrawing funds at a furious rate.

It also supports concerns about the future of the crypto industry, which faces an uphill task to regain favor among retail investors after several explosions this year.

Reporting by Niket Nishant in Bengaluru and Dietrich Knauth in New York; Editing by Sriraj Kalluvila and Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles.

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