FTX has fired three of its top executives – WSJ

Cryptocurrency exchange FTX, which recently filed for US bankruptcy court protection, has fired three of its top executives, including co-founder Gary Wang, the Wall Street Journal reported, citing an FTX spokeswoman.

The newspaper said the other two dismissed executives were engineering director Nishad Singh and Carolyn Ellison, who had been running the trading arm of FTX Alameda Research.

FTX did not immediately respond to a Reuters request for comment.

The cryptocurrency exchange filed for bankruptcy protection last week and former Wall Street trader Sam Bankman-Fried stepped down as CEO after rival exchange Binance walked away from a proposed acquisition. Read more

Bankruptcy proceedings in the United States involve several FTX Group companies with more than 100,000, possibly more than 1 million creditors.

According to interviews with several people close to Bankman-Fried and previously unreported company communications, the company was secretly risking clients’ money to support a Bankman-Fried-owned business, which led to the company’s collapse. Read more

The company has been subject to some regulatory oversight with dozens of licenses acquired through numerous acquisitions. But that has not protected its customers and investors, who now face billions of dollars in losses.

Since then, many cryptocurrency firms have been preparing for the fallout from the FTX collapse, with many counting their exposure in the millions to the beleaguered exchange.

Reporting was provided by Akanksha Khushi in Bengaluru; Editing by William Mallard, Rovert Purcell

Our standards: Thomson Reuters Trust Principles.

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