The Conversation (0)
Ariana Baio
Nov 11, 2022
Cryptocurrency Exchange FTX Teeters Near Bankruptcy
Video
Cryptocurrency giant FTX announced on Friday it had filed for Chapter 11 bankruptcy and their CEO who was dubbed "the next Warren Buffet" just weeks ago would be stepping down.
The announcement comes as a shock as FTX has been considered the "gold standard" of cryptocurrency exchanges. The company spent millions marketing itself as a reliable exchange.
FTX commercials have featured celebrities like Larry David and Tom Brady.
Sign up for our free Indy100 weekly newsletter
30-year-old founder and CEO, Sam Bankman-Fried, known by his initials as SBF, was dubbed "the next Warren Buffet" for building a crypto exchange empire.
Before this week, Bankman-Fried's net worth was worth more than $15 billion, but by Friday he was valued at zero, according to Bloomberg.
"I'm really sorry, again, that we ended up here," he tweeted on Friday.
None— CRG (@CRG) 1668176130
FTX's collapse is the latest crypto company to experience hardships since the cryptocurrency crash earlier this year.
Although it is one of the least expected given Bankman-Fried's confidence.
\u201cFrom the cover of Fortune to Chapter 11 bankruptcy in 3 months flat\n\nSam Bankman-Fried is out as CEO of FTX Group and his $16 B fortune wiped out\n\nSo no, he probably isn't the next Warren Buffett\u201d— JeannieLee@CBC (@JeannieLee@CBC) 1668178806
\u201cSBF... a wolf in sheeps clothing. Can't seem to get over this feeling. Disappointed. Disgusted. Shocked. Nine years in this space and I'm not sure I've felt the way I do today. \nHe lobbied politicians, hired celebrities, promoted by the media as the next Buffet. Deserves prison\u201d— Felipe (@Felipe) 1667999749
FTX said Bankman-Fried resigned but would remain at the company to assist with the transition as John J Ray III takes over.
Bankman-Fried told followers he would provide a more in-depth statement, "soon".
Have your say in our news democracy. Click the upvote icon at the top of the page to help raise this article through the indy100 rankings.
Top 100
