Sam Bankman-Fried will be stepping down from his position as CEO of the FTX Group, according to a notice issued to the FTX official Twitter account this morning. According to the memo, a total of 130 businesses connected to Bankman-FTX Fried’s Group have also started voluntary bankruptcy proceedings.
FTX’s new CEO John J. Ray III stated that the company has “valuable assets that can only be effectively administered in an organized, joint process” and pointed out that LedgerX LLC, FTX Digital Markets Ltd, FTX Australia Pty Ltd., and FTX Express Pay Ltd. are not a part of the Chapter 11 proceedings.
At several public and private organizations, such as Enron Corp., Fruit of the Loom, and Nortel Networks, Ray previously held the positions of CEO, chief reorganization officer, and other comparable positions.
“The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders,” said Ray in a statement.
However, according to a report by Coingape, John J. Ray III is registered for insider trading. Due to his failure to disclose his financial affairs while holding positions of responsibility, John J. Ray III has been named in the allegations.
The bankruptcy filing includes the names of more than 100 other organizations. The corporate structure of FTX is a highly intricate web of related-party transactions, tax havens, and banking licenses. FTX Trading Ltd., the controlling entity, is based in the Bahamas and was founded in Antigua & Barbuda. Regulators in both nations have stated they are looking into the matter.
Bankman-Fried resigned after expressing regret for FTX’s collapse in a thread on Twitter on Thursday. “I’m sorry. That’s the biggest thing. I f**ked up and should have done better,” he tweeted