The formerly third-largest cryptocurrency exchange FTX has lost its reputation over the past week and has just revealed that it has filed for Chapter 11 bankruptcy in the United States.
Former Enron turnaround expert John J. Ray III has been named as the new CEO of FTX following the resignation of Sam Bankman-Fried, the company’s founding CEO. According to a statement from FTX, approximately 130 additional affiliated companies, including FTX US and Alameda Research, have also started the bankruptcy process. It said that FTX Australia, FTX Express Pay, and the exchange’s Bahamian subsidiary, FTX Digital Markets, as well as its U.S. options platform LedgerX, are not parties to the proceedings. Ray stated in a statement that “the immediate relief of Chapter 11 is appropriate to give the FTX Group the chance to assess its situation and develop a process to maximise recoveries for stakeholders.”