FTX Opens Bankruptcy Procedure, SBF Resigned CEO

According to an announcement posted on the evening of November 11, cryptocurrency exchange FTX has filed for bankruptcy in the US court, Sam Bankman-Fried has also announced his resignation as CEO and John Ray is the name appointed to replace it.

On November 11, the entire crypto market was shaken by the official announcement that FTX US, Alameda Research Ltd and approximately 130 other affiliated companies (collectively, “FTX Group”) entered the Delaware area under Chapter II of the United States Bankruptcy Code.

The crypto company has filed for Chapter 11 bankruptcy to initiate an orderly process to review and monetize assets for the benefit of all its stakeholders globally. John Ray was appointed CEO of FTX Group. Sam Bankman Fried has stepped down as CEO and will continue to support the transition.

The following subsidiaries are excluded from Chapter 2 proceedings: Ledgerx LLC, FTX Digital Markets Ltd, FIX Australia Pty Ltd and FIX Express Pay Ltd.

Thus, after only 4 days since Binance CEO Changpeng Zhao exposed the liquidity problem, FTX had to declare bankruptcy when it was massively withdrawn by users.

In addition, a deficit of up to $8 billion was also disclosed. It is still unclear why the exchange has lost so much money while maintaining its position as one of the top trading platforms with millions of global users, but it is rumored that CEO Sam Bankman-Fried has taken it. User money for Alameda Research fund goes to trade and lose.

FTT also plunged as soon as the news broke.

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