The major digital asset exchange FTX Trading made the announcement on Friday that its billionaire founder, Sam Bankman-Fried, had resigned from his position as CEO and filed for bankruptcy.
The Texas State Securities Board Is Investigating FTX Trading and Its Affiliate FTX US
On Friday, Bankman-Fried expressed his regret over what had transpired by sending out a series of tweets in which he used the hashtag #sorryaboutwhathappened. One can only hold out hope that things will eventually turn out for the better.
The Texas State Securities Board has been conducting an investigation into FTX Trading, its affiliate FTX US, and Bankman-Fried since the beginning of October.
The purpose of the investigation is to determine whether or not the company’s yield-paying cryptocurrency accounts are selling unregistered securities to residents of Texas.
When a company says that it has an “active application for a license that has been pending,” it means that it is not officially licensed to sell securities in the state of Texas, but that it claims to be doing so anyway.
The CEO of a competing cryptocurrency exchange, Changpeng Zhao, expressed doubts about the future of FTX, and the CEO of FTX turned down a bailout offer from Bankman-Fried, which ultimately led to the company’s demise.
According to multiple reports, investors moved quickly to withdraw their funds, making it difficult for the company to keep up with demand.
Fortune Fried’s wealth plummets to zero in just a few days
The newly appointed Chief Executive Officer of FTX Group, John J. Ray III, issued a statement in which he explained that the company had filed for bankruptcy in the state of Delaware in order to “evaluate its situation and come up with a way to maximize recoveries for stakeholders.”
About 130 different companies work together as part of the FTX Group. These companies include FTX Trading, FTX US, and Alameda Research.
After the “fall of his crypto empire,” Bloomberg reported on Friday that banker Fortune Fried’s wealth plummeted to zero in just a few short days, going from $16 billion to zero.
In March, it was reported that he had a net worth of twenty-six billion dollars.
BankmanFried Backs Beto ORourke in Texas Gubernatorial Bid
Beto O’Rourke’s bid for the governorship of Texas received significant backing from Bankman-Fried, who contributed one million dollars to the Democrat’s campaign in the final three months leading up to Tuesday’s election.
Even though O’Rourke did well in the primary election, he was not able to beat Greg Abbott, the Republican governor who was already in office.
FTX subsidiaries and affiliates that are not included in the bankruptcy filings include LedgerX LLC, FTX Digital Markets Ltd., FTX Australia Pty Ltd., and FTX Express Pay Ltd.