It happened after Bankman-Fried was forced to sell his company FTX to its competitor Binance due to liquidity problems. Binance is the largest platform in crypto land. However, the deal between the two crypto exchanges failed. Binance withdrew a day after announcing the acquisition.
LOOK. Technology journalist Kenneth Dée explains in two minutes what crypto coins are exactly.
FTX had to raise billions in funds to stay afloat while under heightened scrutiny by global regulators.
The company now said in a statement via Twitter that FTX, its affiliated crypto trading fund Alameda Research and about 130 other companies in the state of Delaware have voluntarily filed for bankruptcy. This is a so-called Chapter 11 procedure. This will allow the company to continue operating under judicial supervision as it works on a plan to repay creditors.
John J Ray III is the new CEO of the group. Bankman-Fried will remain in the company for a while to ensure an orderly transfer of power.
His loss of 16 billion euros in one day was the largest crypto loss ever. Two months ago, his wealth was estimated at 17 billion by business magazine Forbes.
richest people
In the real-time lists of the richest people in the world by Forbes and Bloomberg (the Billionaires Index, with the 500 richest people in the world), he no longer appears today.
The soap did the prices of various crypto coins not in the least good. The most famous, bitcoin, has already lost almost a fifth of its value this month.
Tomorrowland had 7 million sponsorship deal with fallen crypto exchange FTX
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