4u Created
Image default
Crypto

Troubled Crypto Exchange FTX Files for Chapter 11 Bankruptcy Protection, CEO Steps Down – Bitcoin News


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 Associated Firms Voluntarily Commence Bankruptcy Proceedings

After days of confusion and speculation, the firm FTX has announced it has filed for Chapter 11 bankruptcy in the U.S., according to a Twitter statement. The letter details that West Realm Shires Services (FTX International’s parent firm), Alameda Research, and approximately 130 additional affiliated firms have commenced voluntary proceedings.

Sam Bankman-Fried (SBF), FTX’s CEO has stepped down from the role of CEO and has been replaced by an individual named John J. Ray III.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 follows a tumultuous three days where FTX’s valuation slid from $32 billion to zero. It also follows the discussions with Binance as the world’s largest exchange said it would acquire FTX but then announced it would be backing out of purchasing 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.

Tags in this story
130 companies, alameda, Anthony Scaramucci, Chapter 11, Crypto, crypto exchange, ftx, FTX Alameda Research, FTX Australia, FTX Bankruptcy, FTX digital markets, FTX Express Pay, FTX Files Bankruptcy, FTX firms, LedgerX, Skybridge Capital

What do you think about FTX’s parent company West Realm Shires Services and affiliated companies filing for Chapter 11 bankruptcy? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





Source link

Related posts

Ukraine’s Cyberpolice Expose Members of Crypto Fraud Scheme Making €200 Million a Year – Bitcoin News

‘Wolf of Wall Street’ Jordan Belfort Says He’d Be Shocked if You Didn’t Make Money Investing in Bitcoin Long Term – Markets and Prices Bitcoin News

Indian Commerce Giant Flipkart Will Allow Customers to Purchase Items in the Metaverse – Metaverse Bitcoin News