Bitcoin fell to a two-year low in trading Friday on news that cryptocurrency exchange FTX has initiated bankruptcy under Section 11 of the U.S. Bankruptcy Code.
The company’s CEO, Sam Bankman-Fried, has stepped down, according to a statement circulated by FTX via Twitter. John Ray III has been named the company’s new CEO.
Bitcoin is losing 3.8% in trading, at $16,803 as of 5:40 p.m. Ksk. Earlier in the session, it was down to a two-year low of $16,351.52, Coindesk notes.
Ether (Ethereum) fell 4.5% to $1255.8 and Binance Coin fell 6.2% to $285.11.
Earlier on Friday, the head of the world’s largest cryptocurrency exchange Binance, Changpeng Zhao, said during a conference in Indonesia that the cryptocurrency sector is facing a crisis similar to the financial crisis of 2008, which could lead to the collapse of several companies in the sector in the coming weeks.
