Questions raised on lack of transparency in crypto sector as FTX files for bankruptcy

Questions raised on lack of transparency in crypto sector as FTX files for bankruptcy

Representations of cryptocurrencies are seen in front of displayed FTX logo in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration

Crypto exchange FTX’s rapid fall from grace has shaken up investors’ confidence in the industry.

The FTX Group announced late on Friday that it is filing for Chapter 11 bankruptcy in the United States. In its statement shared on Twitter, the company also said that its CEO Sam Bankman-Fried will be replaced by John J Ray III. Bankman-Fried will, however, “assist Ray and independent professionals” as the company undergoes bankruptcy proceedings.

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