FTX filed for Chapter 11 in the U.S. after falling from prestige in the last week.
Sam Bankman- Fried resigned from his position as FTX CEO, and John J. Ray III was appointed as his replacement.
FTX said in a statement that about 130 additional companies have also begun the process of filing for Chapter 11. FTX Digital Markets, FTX Australia and FTX Express pay are not included in the proceedings.
The relief of Chapter 11 will allow the FTX Group to assess its situation and develop a process to maximize recoveries for stakeholders.
The collapse of the FTX empire came after the company sought out acquisitions and fresh capital from market players.
The world's largest exchange signed a letter of intent to buy FTX. After looking at FTX's structure and books, the plan was scrapped just a bit over 24 hours later.
The issues are beyond our control or ability to help and our hope was to be able to support FTX's customers.
As a result of due diligence, as well as the latest news reports regarding mishandled customer funds and alleged U.S. agency investigations, we have decided not to pursue the acquisition of FTX.
Bankman-Fried said that FTX International was in talks with a number of players and was looking to raise cash. He said that any money raised will be sent to users.
FTX fell from being the third largest exchange to being the 62nd. The US division is 54th. It is now the third largest exchange.
As new information comes in, this story may be updated.
All Rights Reserved © 2024
