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FTX, FTX US, and Alameda file for Chapter 11 bankruptcy in US; SBF resigns

FTX CEO Sam Bankman-Fried has resigned his position, and will be succeeded by John Ray.

Within a week, crypto exchange FTX has gone from proposing an acquisition by Binance to sort out its liquidity issues to filing for bankruptcy under Chapter 11 in the District of Delaware.

In a Nov. 11 tweet, FTX said roughly 130 companies in FTX Group including FTX Trading, FTX US — under West Realm Shire Services — and Alameda Research had started proceedings to file for bankruptcy in the United States. FTX CEO Sam Bankman-Fried has also resigned his position, and will be succeeded by John Ray.

Press Release pic.twitter.com/rgxq3QSBqm

— FTX (@FTX_Official) November 11, 2022

“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,” said Ray. “The FTX Group has valuable assets that can only be effectively administered in an organized, joint process.”

According to the filing, LedgerX, FTX Digital Markets — the group’s subsidiary in the Bahamas — FTX Australia, and FTX Express Pay will not be parties to the bankruptcy proceedings.

This story is developing and will be updated.

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