UPDATED 5:43 PM PT – Friday, November 11, 2022
The cryptocurrency company, FTX, has filed for bankruptcy after Chief Executive Officer Sam Bankman-Fried, has resigned.
Companies in the FTX family, which include Alameda Research. have also filed for bankruptcy in Delaware.
The company collapse has forced the White House and Congressional Democrats to affirm the need for more stringent regulations on the industry.
White House Press Secretary Karine Jean-Pierre echoed the sentiments of those who believe that Bankman-Fried should be held responsible for their actions.
“The most recent news further underscores these concerns and highlights why prudent regulation of cryptocurrencies is indeed needed,” Pierre said. “The White House, along with the relevant agencies, will again closely monitor the situation as it develops.”
After the bankruptcy of his companies, Bankman-Fried’s wealth decreased from $26.5 billion to $991 million. Their famous investors included Tom Brady and Gisele Bundchen, along with Steph Curry as an ambassador.
To note, records indicated that Bankman-Fried was one of the top donors to Democrats, giving nearly $40 million before his companies went under.