FTX lays off three of its top executives: Report
Cryptocurrency exchange FTX, which recently filed for protection in the US bankruptcy court, fired three of its top executives, including co-founder Gary Wang, the the wall street journal reported Friday, citing an FTX spokeswoman.
The other fired executives were engineering director Nishad Singh and Caroline Ellison, who ran FTX’s trading arm, Alameda Research, the newspaper said.
FTX did not immediately respond to a request for Reuters for comment.
Read also | FTX bankruptcy filing reveals staggering mismanagement
The crypto exchange filed for bankruptcy protection last week and former Wall Street trader Sam Bankman-Fried resigned as chief executive after rival exchange Binance pulled out of the business. an acquisition project.
Bankruptcy proceedings in the United States involve several companies of the FTX group with more than 100,000, if not more than a million creditors.
According to interviews with several people close to Bankman-Fried and previously unreported company communications, the company secretly took risks with client funds to support a trading company owned by Bankman-Fried, which led to the collapse of the business.
Read also | Why the Crypto Collapse Matters
The company had been subject to some regulatory scrutiny thanks to the dozens of licenses it had acquired through its many acquisitions. But that hasn’t protected its clients and investors, who are now facing losses totaling billions of dollars.
Several crypto firms have since braced for the fallout from FTX’s collapse, with many counting their exposure in the millions to the embattled exchange.