Failing Crypto Exchange FTX Fires Three Top Executives

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Cryptocurrency exchange FTX, which recently filed for US bankruptcy court protection, has fired three top executives, including co-founder Gary Wang, the Wall Street Journal reported on Friday, citing an FTX spokeswoman.

The other executives fired were engineering director Nishad Singh and Caroline Ellison, who ran FTX’s trading arm Alameda Research, the newspaper reported.

FTX did not immediately respond to a request for comment.

The cryptocurrency exchange filed for bankruptcy last week and former Wall Street trader Sam Bankman-Fried resigned as chief executive after rival exchange Binance walked away from a proposed acquisition.

The US bankruptcy proceedings involve several FTX group companies with more than 100,000, and possibly more than a million, creditors.

According to interviews with several people close to Mr. Bankman-Fried and previously unreported company communications, the company was secretly taking risks with client funds to prop up a trading company owned by Mr. Bankman-Fried, thereby which led to the collapse of the company.

The company had been under some regulatory oversight through the dozens of licenses it obtained through its numerous acquisitions. But that didn’t protect its clients and investors, who are now facing billions of dollars worth of losses.

Several crypto firms are bracing for the fallout from the FTX collapse, with many counting their exposure in the millions to the embattled exchange.

Updated: November 19, 2022, 11:09 am

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