FTX files for Chapter 11 Bankruptcy

FTX crypto exchange’s new team decided to file for Chapter 11 Bankruptcy in the United States.

FTX was a popular crypto exchange, but a couple of days ago. Now this exchange is not able to provide services because of the mismanagement of the user’s funds. Exchange completely suspended its services, which means users can’t withdraw their funds & also can’t trade. Perhaps the exchange suspended its services due to the low liquidity crisis but still trading of Tron blockchain-supported crypto assets is allowed, thanks to the efforts of Tron founder Justin Sun.

On 11 November, FTX exchange announced via its official Twitter account that the exchange’s new team decided to file for Chapter 11 Bankruptcy, in favour of the benefits of all the FTX stakeholders.

The press release noted that Sam Bankman-Fried (SBF) is no longer the CEO of this exchange and now Johan J Ray III is the new CEO of this exchange. Now under the leadership of the  New CEO all the FTX employees from different countries will help in the proceedings of bankruptcy.

Mr. Ray said that the  Bankruptcy decision has been taken because of the FTX exchange aiming to increase the benefits for the FTX stakeholders as much as possible.

Next Possibilities For FTX 

However, reports claimed that FTX exchange was planning to raise funds by the next week, to help the exchange but here this bankruptcy news is confirming that FTX exchange may not continue its services & probably it will stop its services forever.

But still, Bankruptcy under Chapter 11 allows any business to operate its business from a new position, by leaving the credits & past matters on pause mode. So here we can expect that FTX exchange may jump in the crypto sector with new name, but still this is only assumption.

Read also: FTX’s head of institutional sales says his team was ‘completely in the dark during potential crisis