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FTX crypto exchange files for chapter 11 bankruptcy protection

Sam Bankman-Fried also stepped down as FTX CEO as John J. Ray III takes over during the bankruptcy process.

TJ Denzer

November 11, 2022 7:32 AM

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It was a calamitous week for cryptocurrency exchange company FTX, and it seems to be getting even worse as the company looks to file for chapter 11 bankruptcy protection. The company announced its filing recently, and as it enters the process, CEO Sam Bankman-Fried is also stepping down from the role. He will be replaced by John J. Ray III, who will oversee the company through the bankruptcy process.

The filing and CEO swap were announced by FTX in a statement posted on the company’s Twitter on November 11, 2022. According to the filing, the company will voluntarily commence proceedings related to chapter 11 bankruptcy, including the “process to review and monetize assets for benefit of global stakeholders.”

In stepping into the CEO role in place of Bankman-Fried, John Ray III shared a statement that he hopes the bankruptcy process will provide peace of mind to shareholders.

“The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders,” Ray said in his statement. “The FTX Group has valuable assets that can only be effectively administered in an organized, joint process. I want to ensure 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.”

FTX has been in dire straits for a while now. This week began with Binance looking like it might bail the company out with an acquisition of FTX, but then Binance backed out of a deal completely. This led to Sam Bankman-Fried then issuing a public apology in an address of FTX’s liquidity.

With this move into chapter 11 bankruptcy proceedings, it looks like FTX at the end of its rope. Stay tuned as we continue to follow-up with further information and updates.

TJ Denzer

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.