FTX Files for Chapter 11 Bankruptcy. SBF Stepping Down
FTX is declaring bankruptcy, and SBF is closing the door on its liquidity crunch.
Key TakeawaysFTX has filed for Chapter 11 bankruptcy along with its affiliate companies.
Sam Bankman-Fried will also be stepping down as FTX CEO. John J. Ray III will replace him
This news comes less than a week following a liquidity crunch that caused FTX’s catastrophic meltdown.
Share this articleJohn J.Ray III will replace Sam Bankman Fried as CEO. John J. Ray III will replace him. Ray stated in the statement:
“The immediate relief provided by Chapter 11 is appropriate to allow the FTX group to assess its situation, and develop a process for maximising recoveries for stakeholders… I want every employee, customer creditor, contract party stockholder, investor and governmental authority to know that we will conduct this effort with diligence and thoroughness.
This news adds to a week that has seen FTX and Bankman Fried suffer a devastating meltdown due to a liquidity crisis. After it was revealed that Alameda Research (a trading firm founded by Bankman-Fried) was insolvent, the exchange’s problems were first discovered. FTX was then hit by a bank run. This was exacerbated by the announcement of Binance CEO Changpeng Zhao. Customers fled with their funds, causing a crisis both for FTX as well as Alameda. FTX stopped withdrawing funds, causing major concern among exchange users. Binance had announced that it would buy the exchange for a reported $1 fee. However, Binance pulled out of the deal hours later. Since then, it has been revealed that FTX has a $9.4 Billion hole in its accounts. Bankman-Fried also misappropriated customer funds on FTX and sent billions of dollars of assets to Alameda in order to help them out of the May disaster. The scandalous founder is now facing serious consequences. U.S agencies such as the Securities and Exchange Commission and the Department of Justice have begun investigating the matter. While most FTX users can withdraw their funds, the crypto community has been calling on Bankman-Fried and Alameda’s insiders to be held accountable. The market selloff resulted in the crypto market’s global value falling below $900 million for the very first time in months. The crypto space is now anticipating major consequences over the next few years. Despite what FTX has claimed, the chances that customers will be able to retrieve their assets any time soon are even slimmer. This story is still in development and will be updated as more details become available. Share this article Decentral Media, Inc. does not act as an investment advisor. We do not provide personalized investment advice or any other financial advice. This website’s information is subject to change at any time. The information on this website could become obsolete or incorrect. You may not be able to update any information that is outdated, incomplete or inaccurate. We also reserve the right to change any information that is incorrect, incomplete or outdated. If you need investment advice about an ICO, IEO or other investment, we strongly recommend that you consult a licensed financial advisor or other qualified financial professional. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.See full terms and conditions.Recommended News