On the morning of Friday, November 11, FTX released the news via an official tweet revealing that the company along with sister company Alameda Research Ltd, and associated affiliate companies, are filing for voluntary chapter 11 bankruptcy in the United States.
Throughout the week the most-followed blockchain news has been all but dominated by FTX, beginning at the top of the week when platform users were unable to process withdrawals submitted through the exchange.
Yesterday, Binance Said “No Thanks”
The news of bankruptcy comes just a day following revelations that Binance decided not to go forward with the purchase and acquisition of the troubled FTX and Alameda Research companies. The largest digital assets exchange in the world reported that upon corporate due diligence, the decision not to purchase the exchange, as it was assessed that customer funds had been potentially mismanaged. CZ, CEO of Binance, seemed to want nothing to do with the deal upon the findings, and tweeted “We tried” along with a short message this past Wednesday.
For quite some time FTX has been considered to be a major competitor of Binance, as the two companies seemed to be in a race to acquire more of the available stake in the crypto trading and exchange world over this difficult 2022 from a market perspective. It was a surprising move to many when the news broke on Tuesday, confirming that Binance was in fact looking into the potential acquisition of FTX and affiliate companies.
Specific Details Of The Bankruptcy
The official 23 page bankruptcy filing has been released, and details are available in PDF format through the Court Listener platform. In the paperwork all 134 companies, including FTX and affiliate companies, are listed as participating entities in the chapter 11 filing. The proceeding, filed in the state of Delaware, also clearly defines that Sam Bankman-Fried is stepping down and appointing new officers to run FTX and oversee the proceedings.
SBF has still affirmed that he will stay involved in the process although he is stepping down in his official capacity as now former CEO. A new FTX and Alameda Research chairman, as well as official legal counsel are all named as part of the official bankruptcy documentation as well.
What Happens Now That SBF Is Stepping Down?
Sam Bankman-Fried was not only the long-standing CEO, but also the founder of FTX and Alameda Research. SBF, once a globally-recognized idol of sorts as one of few billionaires under 30 in the world, will be replaced by newly appointed CEO, John J. Ray III immediately as the bankruptcy filing proceeds forward.
Stephen Neal, a cryptocurrency investor, was appointed by SBF as the acting Chairman of the Board for FTX and Alameda also in the wake of the major proceedings. New CEO, John J Ray III released an official statement in which he assured customers, shareholders, and everyone affected by the difficult news that the proceedings would be processed with diligence, thoroughness and transparency.
The FTX Group has valuable assets that can only be effectively administered in an organized, joint process. I wanted to assure 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.ohn J Ray, Newly Appointed CEO, FTX