In a week, cryptocurrency exchange FTX has gone from proposing a takeover by Binance to fix its liquidity problems to filing for Chapter 11 bankruptcy in the District of Delaware.
In a tweet on November 11, FTX said that some 130 companies in the FTX Group, including FTX Trading, FTX US – under West Realm Shire Services – and Alameda Research, had initiated bankruptcy proceedings in the United States. FTX CEO Sam Bankman-Fried has also resigned from his position and he will be succeeded by John Ray.
Press Release pic.twitter.com/rgxq3QSBqm
— FTX (@FTX_Official) November 11, 2022
“Immediate Chapter 11 relief is appropriate to provide the FTX Group with an opportunity to assess its situation and develop a process to maximize recoveries for stakeholders”Ray said. “The FTX Group has valuable assets that can only be effectively managed in an organized and joint process.”
According to the presentation, LedgerX, FTX Digital Markets -the group’s subsidiary in the Bahamas-, FTX Australia and FTX Express Pay will not be party to the bankruptcy proceedings.
This news is in development and will be updated.
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