FTX Group has submitted bankruptcy proceedings. Sam Bankman-Fried resigned
FTX Group has submitted an insolvency application in accordance with Chapter 11 of the US Code of Bankruptcy. Sam Bankman-Fried left the post of CEO.
John Ray III was appointed to the position of general director.
In addition to FTX Trading Ltd., We are talking about about 130 affiliated legal entities, including Alameda Research.
According to the press release, the statement does not include Ledgerx LLC, FTX Digital Markets Ltd., FTX Australia Pty Ltd. and FTX Express Pay Ltd.
“[Submitting an application in accordance with Chapter 11] it is appropriate to give FTX Group the opportunity to evaluate its situation and develop a procedure for maximum compensation,” said John Ray III.
According to him, FTX Group «has valuable assets that can be effectively controlled only within the framework of an organized joint process».
“I want to assure each employee, client, creditor, counterparty, shareholder, investor, government body and other interested side in the fact that we will carry out this work with zeal, thoroughness and transparency,” CEO added CEO.
According to Alameda Research, she has more than 100,000 creditors. The assets and obligations of the company are estimated in the range from $ 10 billion to $ 50 billion.
Bankman-Fried expressed regret and hope that the decision made is the best for customers.
3) This sodaesn’T Necessarily has to mean the end for the commander or their Ability to Provide Value and Funds to Their Customers Chiefly, and Can be Consistent Is Rounts.
Ultimatly I’m Optimistic that mr. Ray and Others Can Help Provide Whatver Is Best.
– SBF (@SBF_FTX) NOVEMBER 11, 2022
“This does not have to mean the end for companies or their ability to provide value and funds mainly to its customers, and may be compatible with other ways. Ultimately, I am optimistic about the fact that Ray and others can help provide all the best, ”Bankman-Fried wrote.
On November 9, the state of the ex-head of the FTX collapsed by 94%-from $ 15.6 billion to $ 992 million, and now at all to zero.
On November 11, Fatman analyst suggested that in the case of FTX bankruptcy https://gagarin.news/news/amp-cryptocurrency-review-utility-benefits-for-investors-where-to-buy/, there is a high probability ”of disclosure of detailed information about users and their transactions. For example, the Celsius Network Cryptoland Platform has submitted an application for insolvency of the Celsius Network platform, containing the full name and temporary marks for all customer transactions, including deposit, withdrawal and liquidation.
Prepare Your Online Pressence. IF FTX Goes Into Bankrupy, There is a Good Chance that Full Names and Crypto Balances of All Users Will Be Made Public. It will be a private nightmare, and many Will Beckmailed/Harmed. Consider this An eventuality and Take Preemptive Measures.
– Fatman (@fatManterra) november 11, 2022
“It will be a nightmare for confidentiality, and many will undergo blackmail/harm,” Fatman wrote.
Recall, on November 6, CEO Binance Chanpen Zhao announced the company’s desire to get rid of FTX FTX Utility Token. Assets with Busd in a total of ~ $ 2.1 billion steel by the company’s output from portfolio investment in the platform.
On November 8, Bankman-Fried and Zhao announced strategic partnership, but on November 10, Binance refused to absorb ftx. The company said they could not solve the problems that have arisen from the platform.
Industry participants hastened to distance themselves from the Exchange of Sam Bankman-Frida and the associated Alameda Research. One of the FTX investors, the venture company Sequoia Capital, recognized the investment in the amount of $ 213.5 million irrevocable.
According to media reports, American regulators have begun studying FTX ties with a unit in the United States and Alameda Research. The Ministry of Justice also became interested in the activity of the platform.
According to Bloomberg and WSJ, the “hole” in the balance of the platform amounted to $ 8 billion. However, Reuters voiced a large amount – $ 9.4 billion.
The Bahamas Securities Commission blocked the assets of FTX Digital Markets and affiliated legal entities, and also suspended the company’s license in the country.
The Japanese Financial Services Agency ordered the local exchange to suspend the operations and go to Close-Only mode . It also became known that the Cyprus regulator intends to suspend the license of the FTX European branch.
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