FTX Submits Chapter 11 Bankruptcy Filing, Sam Bankman-Fried Resigns

Summary:

• FTX has filed for bankruptcy after pausing withdrawals earlier.
• The chapter 11 bankruptcy filing covers all members of FTX Trading Limited including FTX US, Alameda, and around 130 other affiliated entities.
• Founder and CEO Sam Bankman-Fried has also resigned.

Cryptocurrency exchange FTX filed for chapter 11 bankruptcy under the United States Bankruptcy code after a botched bailout deal with Binance and a massive “liquidity crunch”.

FTX.US, the American subsidiary of Sam Bankman-Fried’s crypto exchange giant, and his trading firm Alameda Research are included in the filing, per Friday’s official announcement. 130 other affiliated companies are included in the proceedings as well.

Bankman-Fried has also stepped down as CEO but will remain to “assist in an orderly transition”, Friday’s statement read. SBF’s $32 billion fortune evaporated following revelations about insolvency and asset mismanagement at his companies including crypto exchange FTX and Alameda.