FTX files for bankruptcy

FTX files for bankruptcy- an one of the world's largest cryptocurrency exchanges has declared bankruptcy.

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Crypto exchange FTX filed for Chapter 11 bankruptcy protection in the U.S

FTX Group enterprises, including FTX.com, FTX US, Alameda Research, and “about 130 additional associated companies,” have filed for Chapter 11 bankruptcy.

Sam Bankman-Fried, aka SBF, resigned as CEO and founder but will assist in an orderly succession. John Ray III has been named the new CEO.

American attorney John J. Ray III first made headlines in 2004 when he was appointed to oversee the liquidation of Enron, the Texas energy company that went bankrupt in 2001 after widespread financial fraud was discovered.

Ray described bankruptcy as the start of a new road forward. “The immediate relief of Chapter 11 is appropriate to allow the FTX Group to examine its condition and devise a mechanism to optimize recoveries for stakeholders,” he said.

“I’m piecing together all of the details, but I was surprised to see things crumble the way they did earlier this week,” says the author. “I will shortly write up a more thorough post on the play by play,” he continued, “but I want to make sure that I get it properly when I do.”

According to their respective bankruptcy petitions, FTX US and Alameda Research had liabilities ranging from $10 billion to $50 billion and assets ranging from $10 billion to $50 billion. According to Bloomberg, Bankman-fortune Fried’s has dropped “100%” from $16.2 billion earlier this year.

According to the complaint, FTX Digital Markets, FTX Australia, FTX Express Pay, and LedgerX (doing business as FTX US Derivatives) are not included in the bankruptcy proceedings.

SBF, the founder of FTX, apologized via Twitter, saying, “Hopefully things can find a way to recover.”

 

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