Within a week, crypto exchange FTX has gone from proposing an acquisition by Binance to sort out its liquidity issues to proceeding with 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 Shires 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