Sam Bankman-Fried's FTX has filed for Chapter 11 in the US. Bankman-Fried stepped down as CEO and was replaced by John J. Ray III.
A number of companies are part of the voluntary proceedings.
The relief of Chapter 11 will allow the FTX Group to assess its situation and develop a process to maximize recoveries for stakeholders.
Valuable assets of the FTX Group can only be effectively administered in a joint process. Ray wants to make sure that every employee, customer, creditor, contract party, stockholder, investor, governmental authority and other stakeholder that we are conducting this effort with diligence, thoroughness and transparency.
Stakeholders should be aware that events have been fast- moving and the new team is only recently engaged, and that they should review the materials filed on the docket of the proceedings for more information.
One of the biggest names in the sector had a rough week.
FTX went from a $32 billion valuation to bankruptcy in a matter of days as customers demanded withdrawals and rival exchange ripped up its nonbinding agreement to buy the company. Sam Bankman- Fried admitted on Thursday that he had fucked up.
Anthony Scaramucci, the founder of SkyBridge Capital, flew to the Bahamas this week to help Bankman- Fried as an investor and friend. He says it appeared beyond the point of a simple rescue when he arrived. When he and other investors first looked at FTX as a potential business partner, he didn't see evidence of mismanagement.
"Duped I guess is the correct word, but I am very disappointed because I do like Sam." I don't know what happened because I was not an employee.
The Chapter 11 proceedings don't include the following subsidiaries.
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Jack was a contributor to this report.
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