{"id":69948,"date":"2022-11-11T17:26:52","date_gmt":"2022-11-11T15:26:52","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=69948"},"modified":"2025-09-07T23:03:49","modified_gmt":"2025-09-07T20:03:49","slug":"ftx-group-files-for-bankruptcy-sam-bankman-fried-resigns-as-ceo","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/ftx-group-files-for-bankruptcy-sam-bankman-fried-resigns-as-ceo\/","title":{"rendered":"FTX Group files for bankruptcy. Sam Bankman-Fried resigns as CEO"},"content":{"rendered":"<p>FTX Group has filed for Chapter 11 bankruptcy protection under the U.S. Bankruptcy Code. Sam Bankman-Fried has stepped down as CEO.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Press Release <a href=\"https:\/\/t.co\/rgxq3QSBqm\">pic.twitter.com\/rgxq3QSBqm<\/a><\/p>\n<p>\u2014 FTX (@FTX_Official) <a href=\"https:\/\/twitter.com\/FTX_Official\/status\/1591071832823959552?ref_src=twsrc%5Etfw\">November 11, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>John Ray III has been appointed as CEO.<\/p>\n<p>In addition to FTX Trading Ltd., the case involves about 130 affiliated entities, including Alameda Research.<\/p>\n<p>According to the press release, the filing does not include LedgerX LLC, FTX Digital Markets Ltd., FTX Australia Pty Ltd. and FTX Express Pay Ltd.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cFiling under Chapter 11 is appropriate to give FTX Group the opportunity to assess its situation and develop a process for maximum restitution,\u201d said John Ray III.<\/p>\n<\/blockquote>\n<p>According to him, the FTX Group &#8216;possesses valuable assets that can be effectively managed only within an organised joint process&#8217;.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cI want to assure every employee, client, creditor, counterparty, shareholder, investor, government agency and other interested parties that we will undertake this work with diligence, thoroughness and transparency,\u201d the CEO added.<\/p>\n<\/blockquote>\n<p>According to <a href=\"https:\/\/www.docdroid.net\/F0TqEsL\/alameda-chapter-11-db-pdf#page=4\">filing<\/a> of Alameda Research, it has more than 100,000 creditors. The company\\&#8217;s assets and liabilities are estimated at between $10 billion and $50 billion. <\/p>\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"947\" height=\"521\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/2022-11-11-18.19.21.jpg\" alt=\"FTX Group \u043f\u043e\u0434\u0430\u043b\u0430 \u0437\u0430\u044f\u0432\u043b\u0435\u043d\u0438\u0435 \u043e \u0431\u0430\u043d\u043a\u0440\u043e\u0442\u0441\u0442\u0432\u0435. \u0421\u044d\u043c \u0411\u044d\u043d\u043a\u043c\u0430\u043d-\u0424\u0440\u0438\u0434 \u0443\u0448\u0435\u043b \u0432 \u043e\u0442\u0441\u0442\u0430\u0432\u043a\u0443\" class=\"wp-image-190644\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/2022-11-11-18.19.21.jpg 947w, https:\/\/u1f987.com\/wp-content\/uploads\/2022-11-11-18.19.21-300x165.jpg 300w, https:\/\/u1f987.com\/wp-content\/uploads\/2022-11-11-18.19.21-768x423.jpg 768w\" sizes=\"auto, (max-width: 947px) 100vw, 947px\" \/><figcaption>Source: Alameda Research filing.<\/figcaption><\/figure>\n<p>Bankman-Fried expressed regret and hoped the decision would be best for customers.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">3) This doesn\u2019t necessarily have to mean the end for the companies or their ability to provide value and funds to their customers primarily, and can be consistent with other routes.<\/p>\n<p>Ultimately I\u2019m optimistic that Mr. Ray and others can help provide whatever is best.<\/p>\n<p>\u2014 SBF (@SBF_FTX) <a href=\"https:\/\/twitter.com\/SBF_FTX\/status\/1591089324006977536?ref_src=twsrc%5Etfw\">November 11, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThis doesn\u2019t necessarily have to mean the end for the companies or their ability to provide value and funds to their customers primarily, and can be consistent with other paths. In the end, I am optimistic that Ray and others can help provide whatever is best,\u201d wrote Bankman-Fried.<\/p>\n<\/blockquote>\n<p>On 9 November, the former FTX chief\\&#8217;s wealth <a href=\"https:\/\/u1f987.com\/en\/news\/bloomberg-excludes-sam-bankman-fried-from-its-billionaire-list\">plunged<\/a> by 94% \u2014 from $15.6 billion to $992 million, and now even <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-11-11\/sam-bankman-fried-s-assets-go-from-16-billion-to-zero-after-ftx-collapse?leadSource=uverify%20wall\">to zero<\/a>.<\/p>\n<p>Bitcoin reacted to the news with a drop. In the last 24 hours the asset fell by 3.2% (<a href=\"https:\/\/www.coingecko.com\/ru\">CoinGecko<\/a>). At one point the price slipped below $16,300, but has since risen above $17,000.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"677\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/BTCUSD_2022-11-11_17-50-49-1024x677.png\" alt=\"FTX Group \u043f\u043e\u0434\u0430\u043b\u0430 \u0437\u0430\u044f\u0432\u043b\u0435\u043d\u0438\u0435 \u043e \u0431\u0430\u043d\u043a\u0440\u043e\u0442\u0441\u0442\u0432\u0435. \u0421\u044d\u043c \u0411\u044d\u043d\u043a\u043c\u0430\u043d-\u0424\u0440\u0438\u0434 \u0443\u0448\u0435\u043b \u0432 \u043e\u0442\u0441\u0442\u0430\u0432\u043a\u0443\" class=\"wp-image-190634\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/BTCUSD_2022-11-11_17-50-49-1024x677.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/BTCUSD_2022-11-11_17-50-49-300x198.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/BTCUSD_2022-11-11_17-50-49-768x507.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/BTCUSD_2022-11-11_17-50-49.png 1341w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Hourly BTC\/USD chart from Binance. Data: TradingView.<\/figcaption><\/figure>\n<p>On 11 November, analyst FatMan suggested that in the event of FTX bankruptcy there is a high likelihood of detailed information about users and their transactions being disclosed. For example, <a href=\"https:\/\/u1f987.com\/en\/news\/celsius-files-for-bankruptcy-protection\">which filed for bankruptcy<\/a> crypto-lending platform Celsius Network <a href=\"https:\/\/u1f987.com\/en\/news\/celsius-network-releases-detailed-data-on-user-transactions\">published 14,000 pages of data<\/a>, containing full names and timestamps for all customer transactions, including deposits, withdrawals and liquidations.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Prepare your online presence. If FTX goes into bankruptcy, there is a good chance that full names and crypto balances of all users will be made public. It will be a privacy nightmare, and many will be blackmailed\/harmed. Consider this an eventuality and take preemptive measures.<\/p>\n<p>\u2014 FatMan (@FatManTerra) <a href=\"https:\/\/twitter.com\/FatManTerra\/status\/1591036500124528641?ref_src=twsrc%5Etfw\">November 11, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThis will be a privacy nightmare, and many will be blackmailed\/harmed,\u201d FatMan wrote.<\/p>\n<\/blockquote>\n<p>Earlier on 6 November, Binance CEO Changpeng Zhao <a href=\"https:\/\/u1f987.com\/en\/news\/alameda-research-says-it-would-buy-ftt-from-binance-at-22-per-token\">stated<\/a> about the company\\&#8217;s aim to shed the FTT token. Assets, together with BUSD, totaling around $2.1 billion, were the result of the company\\&#8217;s exit from its portfolio investment in the platform.<\/p>\n<p>8 November, Bankman-Fried and Zhao<a href=\"https:\/\/u1f987.com\/en\/news\/binance-chief-changpeng-zhao-announces-purchase-of-ftx\"> announced a strategic partnership<\/a>, but on 10 November <a href=\"https:\/\/u1f987.com\/en\/news\/binance-abandons-bid-for-ftx-justin-sun-says-he-will-help-find-a-solution\">Binance walked away from acquiring FTX<\/a>. The company said it would not be able to resolve the platform\\&#8217;s problems.<\/p>\n<p>Industry participants rushed to <a href=\"https:\/\/u1f987.com\/en\/news\/crypto-industry-participants-distance-themselves-from-ftx-and-alameda-research\">distance themselves<\/a> from Sam Bankman-Fried\\&#8217;s exchange and its affiliated Alameda Research. One of FTX\\&#8217;s investors, venture firm Sequoia Capital, <a href=\"https:\/\/u1f987.com\/en\/news\/sequoia-capital-records-213-5-million-loss-on-ftx-investments\">declared unrecoverable<\/a> investments of $213.5 million.<\/p>\n<p>According to the press, U.S. regulators <a href=\"https:\/\/u1f987.com\/en\/news\/us-regulators-investigations-into-ftx-come-to-light\">have begun examining<\/a> FTX\\&#8217;s ties to its U.S. unit and Alameda Research. The Department of Justice has also shown interest in the platform\\&#8217;s activities.<\/p>\n<p>According to Bloomberg and WSJ, the platform\\&#8217;s balance-sheet gap <a href=\"https:\/\/u1f987.com\/en\/news\/bloomberg-and-wsj-report-an-8-billion-hole-in-ftx-balance-sheet\">stood at $8 billion<\/a>. However Reuters reported a higher figure \u2014 <a href=\"https:\/\/u1f987.com\/en\/news\/tether-freezes-46-37-million-usdt-held-for-ftx-at-authorities-request\">$9.4 billion<\/a>.<\/p>\n<p>The Bahamas Securities Commission <a href=\"https:\/\/u1f987.com\/en\/news\/bahamas-regulator-freezes-ftx-assets\">blocked the assets of FTX Digital Markets<\/a> and affiliated entities, and also suspended the company\\&#8217;s license in the country.<\/p>\n<p>The Japan Financial Services Agency <a href=\"https:\/\/u1f987.com\/en\/news\/japan-regulator-orders-local-ftx-unit-to-suspend-operations\">ordered to suspend operations<\/a> at the local unit of the exchange and to operate in close-only mode. It also emerged that regulator in Cyprus intends <a href=\"https:\/\/u1f987.com\/en\/news\/cyprus-regulator-suspends-ftx-license\">to suspend the license of FTX\\&#8217;s European subsidiary<\/a>.<\/p>\n<p>Read ForkLog\\&#8217;s Bitcoin news on our <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Telegram<\/a> \u2014 crypto news, rates and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>FTX Group has filed for Chapter 11 bankruptcy protection under the U.S. Bankruptcy Code. Sam Bankman-Fried has stepped down as CEO.<\/p>\n","protected":false},"author":1,"featured_media":69949,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1435,1236,1403],"class_list":["post-69948","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-alameda-research","tag-ftx","tag-sam-bankman-fried"],"aioseo_notices":[],"amp_enabled":true,"views":"55","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69948","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=69948"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69948\/revisions"}],"predecessor-version":[{"id":69950,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69948\/revisions\/69950"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/69949"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=69948"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=69948"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=69948"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}