FTX announces bankruptcy filing, Silicon Valley Venture Capital nearly $2 billion may go down the drain

CTOnews.com, November 12 (Xinhua)-- cryptocurrency trading platform FTX announced on Friday local time that it had initiated bankruptcy proceedings in the United States.

FTX said in a statement that CEO Sam Bankman-Fried has resigned but will remain at the company to assist in an orderly transition. In addition, John J. Ray III has been appointed as FTX's new CEO.

Investors from Silicon Valley and Wall Street had overrun FTX, according to the Wall Street Journal. They invested nearly $2 billion (about 14.24 billion yuan) with few strings attached and no oversight of FTX's board.

On Wednesday, local time, Sequoia Capital, a venture capital firm, said it was writing down its $150 million (1.068 billion yuan) investment in FTX by one of its funds, citing repayment risks, CTOnews.com learned.

It is reported that the bankruptcy filers include FTX Trading Ltd., which is in charge of the global trading website FTX.com, Alameda Research, a trading company founded by Bankman-Fried, and FTX.US, a US user platform.

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