In less than a week, FTX crypto exchange, 3rd largest crypto exchange in the world went from suggesting that Binance buy it to fix its liquidity problems to moving forward with filing for Chapter 11 bankruptcy in the District of Delaware.

In a tweet on November 11, FTX said that about 130 of its companies, including FTX Trading, FTX US, under West Realm Shires Services, and Alameda Research, had started the process of filing for bankruptcy in the US. CEO of FTX Sam Bankman-Fried has also left his job, and John Ray will take his place.

“The immediate relief of Chapter 11 is right because it gives the FTX Group a chance to look at its situation and figure out how to get the most money back for everyone,” said Ray. “The FTX Group has valuable assets that can only be managed well if everyone works together in a planned way.”

The filing says that LedgerX, FTX Digital Markets (which is a branch of the group in the Bahamas), FTX Australia, and FTX Express Pay will not be involved in the bankruptcy proceedings.

There were no details about a possible plan to help FTX investors get their money back in the announcement. Many users have tried to withdraw tokens from the exchange because there have been reports of liquidity problems, but at the time of publication, FTX’s website said that it couldn’t process withdrawals.

FTX US says it may stop trading on its platform in the next few days.

There have been a lot of bankruptcies in 2022, from Voyager Digital to Celsius, and the failure of FTX is the most recent one. Many lawmakers around the world have responded to the situation with FTX and others by telling governments to speed up crypto regulations

https://altcoin.ng/ftx-exchange-the-3rd-largest-crypto-exchange-has-filed-for-bankruptcy/