World Crypto Global
- Written by: Solomon Oladipupo
- Fri, 11 Nov 2022
- Israel
<p class="MsoNormal text-align-justify">Beleaguered Bahamian cryptocurrency exchange, FTX, has filed for <a href="https://www.financemagnates.com/terms/b/bankruptcy/" target="_blank" id="41b3ef0d-d805-441d-8443-121890264e94_1" class="terms__main-term">bankruptcy</a> protection in the United States, and Sam Bankman-Fried, its Founder and CEO, has resigned.</p><p class="MsoNormal">The crypto exchange disclosed these on Friday, announcing on Twitter that the FTX Group has kick-started voluntary proceedings under Chapter 11 of the United States Bankruptcy Code in the District of Delaware. </p><blockquote class="twitter-tweet"><p dir="ltr" lang="en">Press Release <a href="https://t.co/rgxq3QSBqm">pic.twitter.com/rgxq3QSBqm</a></p>— FTX (@FTX_Official) <a href="https://twitter.com/FTX_Official/status/1591071832823959552?ref_src=twsrc%5Etfw">November 11, 2022</a></blockquote><p class="MsoNormal">The Group involved in the bankruptcy protection proceedings includes FTX.com, the exchange's United States subsidiary FTX.US, Hong Kong-based subsidiary Alameda Research Limited, and “approximately 130 additional affiliated companies”. The goal of the proceeding is to “review and monetize assets for the benefit of all global stakeholders,” FTX said.</p><p class="MsoNormal text-align-justify">A New Chief</p><p class="MsoNormal text-align-justify">Also, the Bahamian exchange, whose collapse was precipitated by its <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/" target="_blank">recent liquidity crisis</a>, has appointed John J. Ray III to take over from Bankman-Fried as the CEO. However, FTX said Bankman-Fried will remain in the organization to provide assistance for a smooth transition.</p><p class="MsoNormal">Speaking on the bankruptcy proceedings, Ray noted that the process is important because “the FTX Group has valuable assets that can only be effectively administered in an organized, joint process.”</p><p class="MsoNormal">“The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to asset its situation and develop a process to maximize recoveries for stakeholders,” Ray explained, adding that the exchange would conduct the process “with diligence, thoroughness and transparency.”</p><p class="MsoNormal">However, in the press statement published on Twitter, FTX pointed out that some of its subsidiaries were excluded from the proceedings. These are LedgerX LLC, FTX Digital markets Limited, FTX Australia Pty Limited and FTX Express Pay Limited.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.
