Troubled Crypto Exchange FTX Files for Chapter 11 Bankruptcy Protection, CEO Steps Down

The embattled crypto speech FTX has informed the nationalist that the FTX genitor steadfast West Realm Shires Services, Alameda Research, and astir 130 further affiliated companies person filed for Chapter 11 bankruptcy extortion successful Delaware.

FTX’s Parent Company, Alameda Research, and 130 Associated Firms Voluntarily Commence Bankruptcy Proceedings

After days of disorder and speculation, the steadfast FTX has announced it has filed for Chapter 11 bankruptcy successful the U.S., according to a Twitter statement. The missive details that West Realm Shires Services (FTX International’s genitor firm), Alameda Research, and astir 130 further affiliated firms person commenced voluntary proceedings.

Sam Bankman-Fried (SBF), FTX’s CEO has stepped down from the relation of CEO and has been replaced by an idiosyncratic named John J. Ray III. “The contiguous alleviation of Chapter 11 is due to supply the FTX Group the accidental to measure its concern and make a process to maximize recoveries for stakeholders,” the FTX connection said connected Friday.

The quality follows a tumultuous 3 days wherever FTX’s valuation slid from $32 cardinal to zero. It besides follows the discussions with Binance arsenic the world’s largest speech said it would get FTX but past announced it would beryllium backing retired of purchasing FTX aft owed diligence.

The announcement does exclude circumstantial FTX-related subsidiaries including Ledgerx, FTX Digital Markets, FTX Australia, and FTX Express Pay. According to the laminitis of Skybridge Capital, Anthony Scaramucci, helium flew out to the Bahamas to assistance SBF but saw that the contented was much than conscionable a liquidity issue.

What bash you deliberation astir FTX’s genitor institution West Realm Shires Services and affiliated companies filing for Chapter 11 bankruptcy? Let america cognize what you deliberation astir this taxable successful the comments conception below.

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