FTX, FTX US and Alameda will file for Chapter 11 bankruptcy in the United States; SBF resigns

FTX CEO Sam Bankman-Fried has stepped down but "will stay on to help with an orderly transition" before being replaced by John Ray.

In one week, crypto exchange FTX went from being proposed for acquisition by Binance to address its liquidity issues to filing for Chapter 11 bankruptcy in the District of Delaware.

In a Nov. 11 tweet, FTX said that approximately 130 FTX Group companies — including FTX Trading, FTX US, under West Realm Shires Services, and Alameda Research — had commenced bankruptcy proceedings in the United States. United. FTX CEO Sam Bankman-Fried has also resigned and will be replaced by John Ray.

Press release pic.twitter.com/rgxq3QSBqm

“The immediate Chapter 11 relief is appropriate to give the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders,” Ray said. "FTX Group has valuable assets that can only be managed effectively through an organized and joint process."

In a subsequent tweet, Bankman-Fried echoed his Nov. 10 apology, saying he was "truly sorry" for the situation with FTX:

"I hope things can find a way to straighten out. I hope it brings them some transparency, trust and governance. In the end, I hope it can be better for customers."

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. The announcement did not include details of a...