Troubled Crypto Exchange FTX Files for Bankruptcy Protection
The troubled crypto exchange FTX has informed the public that the FTX parent company, West Realm Shires Services, Alameda Research, and approximately 130 additional affiliated companies have filed for Chapter 11 bankruptcy protection in Delaware.
Alameda Research and 130 Associated Firms Commence Bankruptcy Proceedings
After
days of utter confusion and speculation, FTX has announced it has filed for
Chapter 11 bankruptcy in the US in a Twitter statement. The crypto giant has informed
that West Realm Shires Services, Alameda Research, and approximately 130
additional affiliated firms have commenced voluntary proceedings.
Sam
Bankman-Fried (SBF), FTX’s CEO, has stepped down from the role of CEO. He has
been replaced by an individual named John J. Ray III. "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," the FTX statement said on Friday.
The
news follows three days of hectic negotiations that failed with Binance. The
second-largest crypto exchange, FTX’s valuation slid from USD 32 billion to zero. The world’s
largest exchange, Binance, said it would acquire FTX but then announced it would be backing out of the
purchase after due diligence.
The
announcement excludes specific FTX-related subsidiaries, including Ledgerx, FTX
Digital Markets, FTX Australia, and FTX Express Pay. The founder of Skybridge
Capital, Anthony Scaramucci, flew out to the Bahamas to help SBF
but saw that the issue was more than just a liquidity issue.
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