The Globe and Mail reports in its Saturday edition that crypto-exchange FTX filed for U.S. bankruptcy proceedings on Friday and Sam Bankman-Fried stepped down as chief executive officer after a rapid liquidity crisis at the cryptocurrency group that has prompted intervention from regulators around the world. A Reuters dispatch to The Globe says that the distressed crypto-trading platform had been struggling to raise billions in funds to stave off collapse after traders rushed to withdraw $6-billion from the platform in just 72 hours and rival exchange Binance abandoned a proposed rescue deal (all figures U.S.). The company said in a statement Friday that FTX, its affiliated crypto-trading fund Alameda Research and 130 other companies have commenced voluntary Chapter 11 bankruptcy proceedings in Delaware. FTX had raised $400-million from investors in January, increasing the valuation of the company to $32-billion. It attracted money from investors such as Singapore state investor Temasek and the Ontario Teachers' Pension Plan. John Ray has been appointed to take over as CEO. FTX is under investigation by the U.S. Securities and Exchange Commission, the Justice Department and Commodity Futures Trading Commission.
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