Crypto sell-off resumes as week-long FTX saga ends in bankruptcy filing

Cryptocurrencies resumed their sell-off on Friday morning as FTX announced it has filed for Chapter 11 bankruptcy in the U.S.

Bitcoin fell 6% to $16,576.50, while ether lost 7% to $1,215.67, according to Coin Metrics. They’re down 21% and 25%, respectively, for the week.

Sam Bankman-Fried – the CEO of the company that became a so-called white knight for the industry, helping bring crypto to the masses through his relationships with high-profile celebrities, regulators, and institutions in addition to his exchange product – has also resigned, according to a statement posted to FTX’s Twitter account Friday.

Investors are still monitoring the fallout of FTX and its sister company, the trading firm Alameda Research, still unclear on the extent of the damage that will spread to the rest of the market.

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FTX was valued at $32 billion during its last funding round. Some of the biggest names in finance — including SoftBank, BlackRock, Tiger Global, Thoma Bravo, Sequoia, and Paradigm.

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