Crypto exchange FTX has initiated US bankruptcy proceedings and CEO Sam Bankman-Fried has resigned, after a liquidity crisis at the cryptocurrency group that has prompted intervention from regulators around the world.

The distressed crypto trading platform had been struggling to raise billions in funds to stave off collapse after a wave of withdrawals and after a potential rescue deal by larger rival Binance collapsed within a day.

The company said in a statement on Friday, shared via a tweet, that FTX and its affiliated crypto trading fund Alameda Research and approximately 130 other companies have commenced voluntary Chapter 11 bankruptcy proceedings in Delaware.

John J Ray III has been appointed CEO of the group. Bankman-Fried will assist with an orderly transition.

“I’m really sorry, again, that we ended up here,” said FTX founder Bankman-Fried in a series of tweets after the commencement of the bankruptcy filing.

In his tweets, Bankman-Fried said the bankruptcy filing “doesn’t necessarily have to mean the end for the companies” and that he was “optimistic” the group’s new CEO would “help provide whatever is best”.

In its bankruptcy petition, FTX said that it has $10bn to $50bn in assets, $10bn to $50bn in liabilities, and more than 100,000 creditors.

“The FTX group has valuable assets that can only be effectively administered in an organized joint process,” Ray said in the statement.

“I want to ensure every employee, customer, creditor, contract party, stockholder, investor, governmental authority and other stakeholders that we are going to conduct this effort with diligence thoroughness and transparency.”

Some investors, including Sequoia and SoftBank, had already marked FTX investments to zero. Skybridge Capital is working to buy back its FTX stake, the alternative investment firm’s founder Anthony Scaramucci said in an interview with CNBC on Friday.


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