FTX Relieves the Deputies of Sam Bankman-Fried of Their Duties

FTX Relieves the Deputies of Sam Bankman-Fried of Their Duties 

• Bankrupt crypto FTX has fired three top executives, including a co-founder.
• Previously, FTX secured $420 million in fundraising valuing it at $25 billion.
• FTX’s former CEO sold a $300 million stake in the firm after the founding round.

The current management of the bankrupt FTX crypto exchange has sacked three deputies of Sam Bankman-Fried.

According to a Wall Street Journal (WSJ) report, FTX fired Gary Wang, Nishad Singh, and Caroline Ellison. These three served, respectively, as the exchange’s chief technology officer, engineering director, and trading expert. Notably, Gary Wang was also one of the founders of the FTX exchange, while Caroline Ellison ran the trading firm Alameda Research.

Additionally, after FTX filed for Chapter 11 bankruptcy reorganization earlier this month, Bankman-Fried resigned from the CEO position, passing the mantle of leadership to entrepreneur John J. Ray. Reportedly, Ray said in the bankruptcy filing:

I was delegated all corporate powers and authority under applicable law, including the power to appoint independent directors and commence these Chapter 11 cases on an emergency basis.

The new CEO further highlighted that FTX went down due to the concentration of power in the hands few inexperienced and corrupt people. In a recent finding, WSJ claimed that Bankman-Fried sold a $300 million stake in the company after a founding round for the crypto exchange last year, citing the company’s financial documents.

In October 2021, FTX secured $420 million in fundraising from well-known investors, including Temasek and Tiger Global, valuing the cryptocurrency exchange at $25 billion. When the former CEO spent the $300 million of the company stake, he informed investors that the payment represented a partial refund of the funds he had used to acquire Binance’s stake in FTX a few months earlier.

As FTX collapsed, crypto companies are preparing for the impact, with many estimating their exposure in the millions.

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