The embattled crypto exchange FTX has informed the public that the FTX parent firm West Realm Shires Services, Alameda Research, and approximately 130 additional affiliated companies have filed for Chapter 11 bankruptcy protection in Delaware.
FTX’s parent company, Alameda Research, and 130 affiliated firms voluntarily initiate bankruptcy proceedings
According to one Twitter, after days of confusion and speculation, firm FTX has announced that it has filed for Chapter 11 bankruptcy in the US. Statement, The letter noted that West Realm Shires Services (the parent firm of FTX International), Alameda Research and about 130 additional affiliated firms have initiated voluntary action.
Sam Bankman-Fried (SBF), FTX’s CEO has stepped down from the role of CEO and has been replaced by an individual named John J. Ray III. “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,” the FTX statement said on Friday.
The news comes three days after FTX’s valuation dropped from $32 billion to zero. It also follows discussions with Binance as the world’s largest exchange said it would acquire FTX, but then announced that it would withdraw from buying FTX after due diligence.
The announcement does exclude specific FTX-related subsidiaries including Ledgerx, FTX Digital Markets, FTX Australia, and FTX Express Pay. According to the founder of Skybridge Capital, Anthony Scaramucci, he flew out to the Bahamas to help SBF but saw that the issue was more than just a liquidity issue.
