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Crypto company that faces scrutiny from Texas regulators files for bankruptcy after competitor questioned its viability

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FTX’s collapse came after customers raced to cash out their deposits when a major competitor questioned its viability and declined to buy the company in a bailout deal.

Sam Bankman-Fried, CEO and Founder of FTX, in Washington, D.C., on Sept. 15. The crypto company announced Friday that it's filing for bankruptcy and Bankman-Fried has resigned., our daily newsletter that keeps readers up to speed on the most essential Texas news.

The bankruptcy filing in Delaware — which includes FTX Trading, FTX US, Alameda Research and about 130 additional affiliated companies collectively known as the FTX Group — seeks to allow the group to “assess its situation and develop a process to maximize recoveries for stakeholders,” newly-appointed FTX Group CEO John J . Ray III said in a statement.on Friday said Bankman-Fried’s assets went “from $16 billion to zero in days” as a result of the “downfall of his crypto empire.

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