FTX fires three of its top executives – WSJ

Nov 18 (Reuters) – Cryptocurrency exchange FTX, which recently sought protection in a U.S. bankruptcy court, has fired three of its top executives, including co-founder Gary Wang, The Wall reported on Friday. Street Journal, quoting 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 comment from Reuters.

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. Read more

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 more

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.

Reporting by Akanksha Khushi in Bengaluru; Editing by William Mallard, Rovert Birsel

Our standards: The Thomson Reuters Trust Principles.

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