![FTX files for bankruptsy](https://static01.nyt.com/images/2022/11/11/multimedia/11ftx-bankruptcy-1-6c31/11ftx-bankruptcy-1-6c31-superJumbo.jpg?quality=75&auto=webp)
FTX Trading on Friday filed for Chapter 11 bankruptcy, capping a sudden and startling downfall for one of the world's largest cryptocurrency exchanges.
Founder and CEO Sam Bankman-Fried also resigned from the company, which appointed John J. Ray III as its new chief executive. Bankman-Fried plans to stay with FTX while it works through the bankruptcy process, according to a statement on Friday.
"The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders," Ray said in the statement.