FTX, until recently thought to be one of cryptocurrency’s top platforms, has announced it entered voluntary Chapter 11 Proceedings.
The announcement on Friday morning is the latest chapter of a really stunning turn of fortunes for the crypto exchange, a timeline of events that have helped trigger fresh selling across the crypto market.
FTX files for bankruptcy
After FTX halted withdrawals, it entered an agreement with Tron (TRX) to have the platform’s users exchange and withdraw their various Tron-related assets by swapping them 1:1 to their external wallets. The development also coincided with a brief return to withdrawals as we highlighted on Thursday.
However, on Friday, FTX said it had disabled the Tron feature and “strongly advised against depositing.” Shortly after, the embattled crypto platform – led by Sam Bankman-Fried – announced it had filed for Chapter 11 bankruptcy.
A press release shared on Twitter says the filing involves FTX.com, Alameda Research, FTX US and approximately 130 affiliated companies.
Bankman-Fried has also resigned as FTX Group CEO, and will only remain as part of the process to achieve an orderly transition. The new FTX CEO is John J. Ray III.
Press Release pic.twitter.com/rgxq3QSBqm
— FTX (@FTX_Official) November 11, 2022
FTX’s implosion has quickly spiralled since Tuesday, with Binance’s decision to back away from a nonbinding deal following a due diligence report sealing the fate towards today’s filing.