Denver Troubled crypto exchange FTX is officially insolvent. The group of tech entrepreneur Sam Bankman-Fried claims that it applied for bankruptcy protection in the United States on Friday. Bankman-Fried also announced his resignation as CEO.
The business is now being run by star lawyer John Ray, who had already overseen the liquidation of the energy company Enron in 2001. At the time, it was the largest company bankruptcy in the United States.
FTX ran into payment difficulties on Sunday after doubts about capital reserves led to customer flight and billions of dollars in funds being withdrawn.
After the bankruptcy became known, cryptocurrencies continued to slide across the board. Bitcoin initially lost around eight percent and then recovered somewhat. Ether dropped by more than nine percent at first.
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FTT, the token of FTX, continued its free fall. It plunged below the $3 mark on Friday morning. In March, the token was worth $52.
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