Cryptocurrency platform FTX announced on Friday (11) that it had filed for bankruptcy in the United States and that chief executive Sam Bankman-Fried had resigned.

According to comprehensive foreign media reports, Binance agreed to acquire FTX earlier this week but later dropped the acquisition play, saying that the investigation results showed that FTX was in a serious liquidity crisis and faced regulatory investigations.

FTX financials show a mess

Ftx
Image Credit: Crypto News

In a statement, FTX Group indicated that it has filed for Chapter 11 bankruptcy proceedings. Under Chapter 11 bankruptcy, a business is allowed to reorganize its assets under court supervision while continuing to operate.

Their finances are in disarray, causing cryptocurrencies to fall hard. Bitcoin even took a short dive, falling more than 5% to $16,524.

Video Credit: CNBC Television

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