FTX Group files for bankruptcy in the United States

In addition to FTX, the group includes the US arm, FTX US, trading firm Alameda Research and about 130 affiliated companies

11.11.2022 - 14:30

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2 min

What’s new? The official Twitter of the crashed cryptocurrency exchange FTX published a press release with information about the start of bankruptcy proceedings under Article 11 in the US court. The bankruptcy will not only affect FTX, but also the US arm, FTX US, trading firm Alameda Research and about 130 other companies that are part of the FTX Group.

Press Release pic.twitter.com/rgxq3QSBqm
— FTX (@FTX_Official) November 11, 2022

What else is known? On the evening of November 10, Bankman-Fried pleaded guilty to the FTX collapse. He talked about looking for partners to raise funds and keep the exchange running. Later it became known that Alameda Research lost about $8 billion worth of FTX’s customer deposits. According to the Alameda Research filing, its assets and liabilities are valued between $10 billion and $50 billion.

John J. Ray was appointed FTX’s new CEO, the lawyer who previously handled the scandalous bankruptcy case of the US energy company Enron. As a result of falsified statements in 2001, owners of its shares lost $74 billion.

On the morning of November 11, the entire staff of Alameda Research was fired, and now the FTX Group founder Sam Bankman-Fried stepped down as CEO. He stepped down and will be engaged in providing assistance in the transition period for the company.

For what led to the lightning-fast collapse of the FTX exchange and how events will develop further, read the GetBlock Magazine’s article.

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