Find Here The Details What's Inside FTX's New Filing

FTX filed a Motion that says there could be more than one million creditors in the Chapter 11 cases.

FTX operated the world’s second largest cryptocurrency exchange with its FTX.us and FTX.com platforms, operated one of the largest market-makers in digital assets with Alameda Research LLC and its affiliates.

The motion was filed to the Federal Court database system PACER on November 14, 2022. The events that have befallen FTX over the recent week are unprecedented. Barely, over a week, FTX, led by its co-founder Sam Bankman-Fried, was regarded as one of the most respected and innovative firms in the crypto industry.

How FTX Filed for Chapter 11?

As FTX faced a severe liquidity crisis which then led towards the filing of these cases on a sudden basis on November 11, 2022. After the filing, so many questions have arisen about Mr. Bankman-Fried’s leadership and his handling of FTX’s complex array of assets and businesses.

This particular situation then became dreadful Sullivan & Cromwell and Ãlvarez & Marsal North America, LLC (“Alvarez & Marsal”) were engaged to provide restructuring advice and services to FTX. And then at around 4:30 a.m. on Friday, November 11, 2022, after consultation with his own legal counsel, Mr. Bankman-Fried at last agreed to step down.

1/ Statement from John Ray, Chief Restructuring Officer and CEO of @FTX_Official — Consistent with their obligations as Chapter 11 Debtors-in-Possession, FTX US and FTX [dot] com continue to make every effort to secure all assets, wherever located.
— Ryne Miller (@_Ryne_Miller) November 12, 2022

After Mr. Bankman-Fried stepped-down, John J. Ray III, an experienced restructuring executive, was appointed Chief Executive Officer. Mr. Ray was assigned all corporate powers and authority under applicable law, that also include the power to appoint independent directors and commence these cases on an emergency basis.

Early on the next morning, the Chapter 11 case commenced, instituting the worldwide automatic stay codifìed in 11 U.S.C. $ 362. Also, the statutory stay and its enforcement are critical to ensuring that FTX can secure and marshal its assets under the leadership of Mr. Ray.

Then after the appointment, Mr. Ray began his working with FTX’s external legal, turnaround, cybersecurity and forensic investigative advisors to secure customer and debtor assets around the world. Besides Mr. Ray. new independent directors with appropriate experience have also been appointed at each of the main parent companies in the FTX group.

FTX engaged Alvarez & Marsal as proposed financial advisor. An Alvarez & Marsal team on the ground is reviewing the FTX records and assisting with the preparation of bankruptcy disclosures.

Furthermore, FTX engaged investigative, forensic and cybersecurity experts to work with the team at Sullivan & Cromwell, which includes lawyers with expertise in regulated financial institutions, cybercrime and related investigations.

However, FTX representatives have been in contact with the U.S. Attorney’s Office, the U.S. Securities and Exchange Commission, the Commodity Futures Trading Commission, and dozens of Federal, state and international regulatory agencies.