Sam Bankman-Fried (SBF), Founder of FTX, FTX US and Alameda has announced on Twitter that he has filed for Chapter 11 bankruptcy proceedings in the United States.
The Chapter 11 bankruptcy proceedings affects FTX International, FTX US, Alameda and 130 other affiliated companies.
On the same day, Sam Bankman-Fried also resigned from his position as CEO of the FTX Group. John J. Ray III is now the current CEO of the FTX Group.
The purpose of initiating the Chapter 11 proceedings is to give the FTX Group the opportunity to assess its situation. It also allows the Group to develop ways to hopefully maximize recoveries for stakeholders.
This latest development comes as negotiations for other companies to acquire FTX International, most notably from Binance, had fallen through.
To learn more about Binance’s previous plan to rescue FTX International, click here. Also, check out our article on the “war” between SBF and CZ which started the recent cascade of events.
What happens next?
If the FTX Group does eventually go down the bankruptcy route, the assets and liabilities of the Group, and the affected stakeholders would need to be identified. And the Group’s assets potentially liquidated. Distribution of users’ funds (if any) will only occur at the final stages of the proceedings, which could be years away.
Therefore, affected users are recommended to access their accounts and collect screenshots or downloads of all deposits, withdrawals, balances, and account information. It is suggested to keep this information safe in case it becomes necessary in future proceedings.
To download your account and transaction records on FTX, access your FTX account. Then, simply go onto the relevant Balances, Deposits, or Withdrawals tab, and click on the small cloud icon. This will download a .csv file containing your transaction records.