FTX Files for Chapter 11 Bankruptcy; CEO Steps Down – Bloomberg

Source: S&P Global Market Intelligence

FTX Trading Ltd. filed for Chapter 11 bankruptcy with a federal court in Delaware and Sam Bankman-Fried resigned as CEO, Bloomberg News reported Nov. 11.

More than 130 entities associated with FTX.com, FTX US and Alameda Research Ltd. were listed in the filings. The Alameda petition listed assets and liabilities of at least $10 billion each, making it the largest bankruptcy in the U.S. in 2022, according to the report.

FTX's filing in the U.S. Bankruptcy Court for the District of Delaware reportedly did not include plans for reorganization. The initial filings also did not provide any explanation for the firm's downfall, the news outlet noted.

The general counsel of FTX US, Ryne Miller, had also been working with advisers to preserve "whatever is preservable" but had warned against being optimistic for a positive outcome, according to a previous report by Bloomberg, which cited an internal memo.