FTX, once valued at $32 billion and considered the world's most trusted cryptocurrency exchange, has filed for bankruptcy after a liquidity crisis revealed massive financial irregularities. Founder Sam Bankman-Fried has resigned and faces potential criminal charges.

The collapse began when rival exchange Binance revealed it was selling its holdings of FTX's native token. The announcement triggered a bank run that exposed an $8 billion hole in FTX's finances, with customer funds apparently having been used to prop up a related trading firm.

The implosion has sent shockwaves through the cryptocurrency industry and renewed calls for stricter regulation of digital assets.