The cryptocurrency exchange FTX Group declares bankruptcy

The cryptocurrency exchange FTX Group, which has about 130 affiliated companies, announced on Friday that it has filed for voluntary Chapter 11 bankruptcy. FTX Trading Ltd., doing business as FTX.com, West Realm Shires Services, Inc., and Alameda Research Ltd. have all declared bankruptcy.

According to FTX Group, CEO Sam Bankman-Fried has resigned and has been replaced by John J. Ray III. Bankman-Fried and “many employees” of the FTX Group in various countries are expected to remain with the company to assist with operations during the bankruptcy, according to the company.

“The immediate relief of Chapter 11 is appropriate to allow FTX Group to assess its situation and develop a process to maximize recoveries for stakeholders,” new FTX CEO Ray said in a tweet.

The statement said there are approximately 130 affiliated companies in the FTX Group entering bankruptcy proceedings.

However, the bankruptcy does not effect FTX Digital Markets Ltd., FTX Australia Pty Ltd., FTX Express Pay Ltd., or LedgerX LLC, according to the corporate statement.

Delaware is where the bankruptcy was filed.

After blocking withdrawals for two days, FTX reopened them on Thursday. Trading “may be suspended on FTX U.S. in a few days,” FTX warned at the time. FTX’s valuation earlier this year was $32 billion.

According to Ray’s tweet, “The FTX Group has valuable assets that can only be efficiently managed in a coordinated, cooperative process.” We will perform this work with diligence, thoroughness, and transparency, I want to assure every employee, every customer, creditor, contract party, stockholder, investor, governmental authority, and other stakeholder.

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