* FTX filed for Chapter 11 bankruptcy proceedings on Thursday, following a spectacular financial collapse
* The crypto exchange was the world's fourth largest and recently valued as high as $32 billion
* CEO Sam Bankman-Fried resigned amid allegations that he mishandled customer funds
* SEC is probing reports that FTX misappropriated customer deposits to pay for risky hedge fund bets
FTX, the troubled cryptocurrency exchange, has filed for bankruptcy after a stunning financial implosion exposed concerns about its handling of customer funds and rocked broader crypto markets.
The Bahamas-based company, recently valued as high as $32 billion, said on Friday morning that it and its associated firms will file for Chapter 11 bankruptcy proceedings in federal court in Delaware.
Embattled FTX founder and CEO Sam Bankman-Fried has resigned his role and will remain in an advisory role to assist in an 'orderly transition', the company said.
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Update #1: Embattled crypto exchange FTX files for bankruptcy (AP)
Update #2: Sam Bankman-Fried steps down as FTX CEO as his crypto exchange files for bankruptcy (CNBC)
WNU Editor: FTX had a good thing going by just earning their commissions from customers who wanted to buy and sell their crypto assets on the platform. Unfortunately the egos and greed from the executives went out of control and now they are all facing years of litigation and the possibility of jail time. As for the customers and investors. Their money is gone forever.
And now there are worries that the collapse of FTX is going to spread to other platforms .... Crypto Lender BlockFi Suspends Withdrawals in FTX Contagion (Bloomberg).
Why people keep their crypto assets in these exchanges has always escaped me. Get your own crypto wallet, and keep your crypto wealth there.