The once-third-largest crypto exchange FTX has fallen from prestige in the past week and has now announced it filed for Chapter 11 bankruptcy in the U.S.
FTX CEO and founder Sam Bankman-Fried has resigned from his role, and Enron turnaround veteran John J. Ray III has been appointed as the new CEO.
About 130 additional affiliated companies — including FTX US and Alameda Research — have also begun the bankruptcy process, FTX said in a statement. The exchange’s Bahamian subsidiary, FTX Digital Markets, and its U.S. options platform LedgerX, alongside FTX Australia and FTX Express Pay are not included in the proceedings, it stated.
“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,” Ray said in a statement.
This news comes after a week-long collapse of the FTX empire as the company attempted to keep