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FTX, FTX US and Alameda File for Chapter 11 Bankruptcy in US; CEO SBF Resigns

Cointime Staff· 2 min read

In a Nov. 11 tweet, FTX said roughly 130 companies in FTX Group — including FTX Trading, FTX US, under West Realm Shires Services, and Alameda Research — had started proceedings to file for bankruptcy in the United States. 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 on a potential recovery plan for FTX investors.

Bankman-Fried has also resigned but will "assist in an orderly transition." John Ray III is now in charge of the debt-ridden exchange as its new CEO and will work with other “independent professionals” during the proceedings.

FTX CEO Sam Bankman-Fried apologised, again, saying he was "really sorry" for the situation with FTX.

But “this doesn't necessarily have to mean the end for the companies or their ability to provide value and funds to their customers chiefly”, he added.

New CEO John Ray said in a statement, “The FTX Group has valuable assets that can only be effectively administered in an organized, joint process. I want to ensure every employee, customer, creditor, contract party, stockholder, investor, governmental authority and other stakeholder that we are going to conduct this effort with diligence, thoroughness and transparency.”

# FTX # Alameda # SBF

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