Cryptocurrency platform FTX announced this Friday (11) that it has appealed for the protection of the Bankruptcy Law in the United States and reported that its founder, Sam Bankman-Fried, has resigned.
“FTX Trading (…) and approximately 130 companies affiliated with the FTX Group have initiated the voluntary ‘Chapter 11’ procedure” of the United States Bankruptcy Act, to “value” their assets, FTX announced in a statement posted on Twitter. .
Chapter 11 allows companies to reorganize during difficult times without immediate pressure from creditors.
Affiliates involved include exchange platforms FTX.us in the United States and FTX.com in the rest of the world, as well as the investment fund Alameda Research, launched by Bankman-Fried before FTX.
Bankman-Fried was replaced by John J. Ray III and “will assist with the transition as per the rules,” the statement said.
“The Chapter 11 regime is appropriate to give FTX Group the opportunity to assess the situation and implement a maximum recovery procedure for investors,” Ray said.
The vertiginous fall of the FTX shook the cryptocurrency world. A week ago, the group was considered the second largest cryptocurrency platform in the world, and its founder, a privileged interlocutor for regulators.
Press reports revealed, however, that his Alameda Research fund invested in crypto assets issued by FTX.com in a complex mechanism. Accusations of investing client funds have multiplied.
FTX’s difficulties increased after the announcement by industry number one, Binance, about the sale of a cryptocurrency linked to its competitor. On Tuesday (8), the company offered to buy FTX.com, withdrawing the next day.
Exacerbated instability in the sector sent cryptocurrencies crashing this Friday (11), with bitcoin shedding 4.5% at $16,794.