Crypto exchange FTX files Chapter 11; John J. Ray III appointed CEO

By Wendy Van Sickle

Columbus, Ohio, Nov. 11 – FTX Trading Ltd. said it, FTX US, Alameda Research Ltd. and about 130 affiliated companies began voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware, according to a press release distributed on Twitter on Friday.

John J. Ray III was been appointed chief executive officer of FTX Group after Sam Bankman-Fried resigned from that role. Bankman-Fried will remain to assist in the transition, FTX reported.

The company filed bankruptcy with between $10 billion to $50 billion of assets and $10 billion to $50 billion of liabilities.

There are more than 100,000 creditors. The company checked the box that said that funds will be available for distribution to unsecured creditors.

“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 the release.

“The FTX Group has valuable assets that can only be effectively administered in an organized, joint process.”

The bankruptcy filing follows the exchange having put up a notice on its website on Wednesday that it is “currently unable to process withdrawals. We strongly advise against depositing.”

On Tuesday, it was announced, via Twitter, that rival Binance might provide a rescue buyout of the company.

Binance reported on Twitter that “after corporate due diligence, as well as the latest new reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com,” as previously reported.

The exchange has headquarters in The Bahamas. The case number is 22-11068.

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