More than 130 entities tied to FTX.com, FTX US and trading firm Alameda Research Ltd. were listed in filings at federal court in Delaware, with the Alameda
Though Chapter 11 lets companies continue operating while they work out a plan to repay creditors, FTX’s filing on Friday morning -- a 23-page form checking boxes -- offered no hint of reorganization plans.
Bankman-Fried resigned as chief executive officer of FTX Group as part of the filing, and
“It’s such an unfortunate, stunning and shocking moment for the industry,”
Even in a global cryptocurrency landscape that’s seen numerous firms rise and fall, FTX’s bankruptcy stands out.
Not only did it operate one of the world’s largest exchanges for digital assets, it was rapidly on its way to mainstream recognition, establishing Bankman-Fried as a statesman for his industry who could speak easily with US lawmakers and regulators about shaping its future. By the time the market peaked in 2021, FTX had earned the trust of more than 5 million users worldwide, trading more than $700 billion worth of crypto that year alone.
A court will now weigh in on how to handle the interests of customers, creditors and business partners seeking to be made whole.
Bankman-Fried, an avid supporter of Democrats, also made pledges to help others, promising that one day he’d give all of his wealth away to charity and political causes. The company’s name was ubiquitous across professional sports, including Formula 1 racing, soccer, baseball and basketball, even adorning the home arena of the National Basketball Association’s Miami Heat. That arena deal was supposed to last 19 years.
Zhao’s Binance Holdings
Now US authorities are investigating Bankman-Fried as well as FTX. His wealth, which stood at around $16 billion at the start of the week, has vanished along with the reputation of a crypto wunderkind who just recently was regarded as a savior of swathes of the industry.
By Thursday, someone had removed the small-lettered signage on the Miami office door of FTX US, a domestic exchange that operates separately. On Twitter that day, Bankman-Fried reassured customers that FTX US was “100% liquid” and “not financially impacted” by FTX International’s problems.
But inside those offices it was sparse. FTX caps sat on a bookshelf, and scattered employees in hoodies watched large computer screens.
A “How are you holding up?” overheard in a hallway was met with a shrug of shoulders.
The case is FTX Trading Ltd.,
(Updates with description of initial filings, additional analyst comment and background from third paragraph.)
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