Crypto exchange FTX filed for bankruptcy in the U.S., the company announced Friday.
CEO and founder Sam Bankman-Fried also resigned his role, but will “assist in an orderly transition.” John Ray III is the new CEO.
FTX Group, which includes the FTX.com entity as well as FTX US, Alameda Research and “approximately 130 additional affiliated companies” have all filed for chapter 11 bankruptcy proceedings, according to a press release.
FTX Digital Markets, FTX Australia, FTX Expess Pay and LedgerX (which does business as FTX US Derivatives) are not included, the release said.
“The FTX Group has valuable assets that can only be effectively administered in an organized, joint process,” Ray said in a statement. “I want to ensure every employee, customer, creditor, contract party, stockholder, investor, governmental authority and other stakeholder that we are going to conduct this effort with diligence, thoroughness and transparency.”
Events have been “fast-moving” and the new team in place only just began, he said.
Bitcoin’s price immediately fell $500 on news of the bankruptcy, dropping to $16,700 within minutes.
Bankruptcy documents were not immediately available in the federal court database PACER.
UPDATE (Nov. 11, 2022, 13:30 UTC): Adds additional context. This story is developing and will be updated.
