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Cryptocurrency exchange FTX has filed for bankruptcy in the United States, the company said on Friday.
Sam Bankman-Fried, the company’s CEO and founder, has also left his position but will “assist in an orderly transition.”
The new CEO is John Ray III.
The development comes hours after Tron founder Justin Sun said he is prepared to pump in billions to rescue FTX.
Bankman-Fried told investors on Wednesday that the company needs at least $4 billion in new investment to stay afloat since it now has a shortfall of up to $8 billion.
Sun entered into negotiations with FTX after Changpeng Zhao, CEO of Binance walked away from the deal to acquire FTX citing corporate due diligence, news reports alleging mishandled customer funds, and U.S. agency investigations against the Bahamas-based exchange.
Sun said the company is ready to cover losses once it finishes doing its own due diligence.
“I don’t have an exact number, but on our side, we know the concept, and I think at this kind of level there is something on the table here,” Sun said.
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Photo via Shutterstock.
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Image and article originally from www.benzinga.com. Read the original article here.