FTX, along with 130 affiliates, including FTX.US and Alameda Research, filed for Chapter 11 bankruptcy amid the liquidity crisis.
press release pic.twitter.com/rgxq3QSBqm
—FTX (@FTX_Official) November 11, 2022
CEO Sam Bankman-Fried will also step down and be replaced by John Ray III.
According to a press statement dated November 11, SBF will continue to assist the new CEO in ensuring an orderly transition. The statement also said that company employees will continue to act in various capacities.
Speaking about development, Ray said:
“Chapter 11 Immediate Relief is appropriate to provide an opportunity for FTX Group to assess the situation and develop processes to maximize the recovery of its stakeholders. There are valuable assets that can only be effectively managed through a collaborative process that is well-established and I urge all employees, customers, creditors, contracting parties, shareholders, investors, governmental authorities and other stakeholders to: We want to ensure that this effort is carried out with diligence, thoroughness and transparency, and stakeholders need to understand that the event is moving fast and new teams are only recently involved. Stakeholders should review the materials filed in the minutes over the next few days for more information.”
The FTT dropped 22% following the news, according to CryptoSlate data.
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