Sam Bankman-Fried Steps Down As FTX CEO

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Sam Bankman-Fried: “Hopefully things can find a way to recover.”

SAM BANKMAN-FRIED — The CEO of crypto exchange FTX recently took to social media to announce that he stepped down from his post.

Sam Bankman-Fried
Photo: Bloomberg

Sam announced in his tweet that he filed FTX, FTX US, and Alameda for “voluntary Chapter 11 proceedings” in the United States. He also apologized and express his hope that the company would be able to continue as a going concern following its bankruptcy.

“Hopefully things can find a way to recover. Hopefully this can bring some amount of transparency, trust, and governance to them. Ultimately hopefully it can be better for customers,” he said in his tweet. “I’m piecing together all of the details, but I was shocked to see things unravel the way they did earlier this week.”

His statement came after his estimated personal wealth reportedly plummeted nearly 94% to $991.5 million in a single day.

According to a report, Chapter 11 bankruptcy allows a company to come up with a plan in order to reorganize itself and to also keep its business alive while it works to pay back its creditors.

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FTX, in a company statement posted on Twitter, announced that Sam has resigned as the CEO of the company and will remain to assist in an orderly transition. The company also said that John J. Ray III has been appointed as the company’s new CEO.

The company also said that “approximately 130 additional affiliated companies” are part of the proceedings – including FTX.us and Alameda Research.

According to Ray, the “immediate relief” of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and to develop a process to maximize recoveries for its stakeholders.

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