Blog
/
Crypto exchanges
Expert verified
5 min read

Sam Bankman-Fried Resigns As FTX Files For Bankruptcy Protection

Ayush Pande
Written by:
Ayush Pande
Reviewed by:
Ayush Pande
Sam Bankman-Fried Resigns As FTX Files For Bankruptcy Protection
Our Editorial Standards:

Cryptocurrencies can be volatile and high risk. Though our articles are for informational purposes only, they are written in accordance with the latest guidelines from tax agencies around the world and reviewed by certified tax professionals before publication. Learn more about our Risk Warning and Our Editorial Process.

In the words of John Ray III, “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.”

The curtains have finally come down on the FTX liquidity crisis as the exchange has filed for Chapter 11 bankruptcy in Delaware’s Federal Court, with Sam Bankman-Fried stepping down as its CEO.

This marks one of the biggest collapses in the crypto industry since Celsius declared insolvency in July.

As per FTX’s press release, John J. Ray III was appointed as the CEO of FTX. Ray, who has previously overseen Enron’s bankruptcy process, will now be responsible for managing FTX’s operations in Sam Bankman’s stead. 

Meanwhile, Sam will remain with FTX to assist in its “orderly transition.”

John Ray III added,

"The FTX Group has valuable assets that can only be effectively administered in an organized, joint process."



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


Besides FTX International, a total of 130 subsidiary firms, including FTX US, Alameda Research, and West Realm Shires, have also initiated their bankruptcy proceedings.

In fact, the filings for Alameda Research alone account for $10B to $50B worth of liabilities from over 100K creditors.

Currently, FTX International has suspended all withdrawals. FTX US has advised users to move their assets off the platform as it may soon halt trading services.

Sam Bankman tweeted that although FTX has filed for bankruptcy, the exchange may still be able to provide funds to its user base.

How we reviewed this article

All Bitcompare articles go through a rigorous review process before publication. Learn more about our Risk Warning and the Bitcompare Editorial Process.

Sam Bankman-Fried Resigns As FTX Files For Bankruptcy Protection

The curtains have finally come down on the FTX liquidity crisis, with the exchange filing for bankruptcy in Delaware’s Federal Court and Sam Bankman-Fried stepping down as its CEO.
Dot
April 6, 2025
Ayush Pande

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

TABLE OF CONTENTS
Sam Bankman-Fried; Photo Source: News7H
In the words of John Ray III, “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.”

The curtains have finally come down on the FTX liquidity crisis as the exchange has filed for Chapter 11 bankruptcy in Delaware’s Federal Court, with Sam Bankman-Fried stepping down as its CEO.

This marks one of the biggest collapses in the crypto industry since Celsius declared insolvency in July.

As per FTX’s press release, John J. Ray III was appointed as the CEO of FTX. Ray, who has previously overseen Enron’s bankruptcy process, will now be responsible for managing FTX’s operations in Sam Bankman’s stead. 

Meanwhile, Sam will remain with FTX to assist in its “orderly transition.”

John Ray III added,

"The FTX Group has valuable assets that can only be effectively administered in an organized, joint process."



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


Besides FTX International, a total of 130 subsidiary firms, including FTX US, Alameda Research, and West Realm Shires, have also initiated their bankruptcy proceedings.

In fact, the filings for Alameda Research alone account for $10B to $50B worth of liabilities from over 100K creditors.

Currently, FTX International has suspended all withdrawals. FTX US has advised users to move their assets off the platform as it may soon halt trading services.

Sam Bankman tweeted that although FTX has filed for bankruptcy, the exchange may still be able to provide funds to its user base.

Sam Bankman-Fried Resigns As FTX Files For Bankruptcy Protection

HomeCrypto exchanges
Contents
Sam Bankman-Fried; Photo Source: News7H
In the words of John Ray III, “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.”

The curtains have finally come down on the FTX liquidity crisis as the exchange has filed for Chapter 11 bankruptcy in Delaware’s Federal Court, with Sam Bankman-Fried stepping down as its CEO.

This marks one of the biggest collapses in the crypto industry since Celsius declared insolvency in July.

As per FTX’s press release, John J. Ray III was appointed as the CEO of FTX. Ray, who has previously overseen Enron’s bankruptcy process, will now be responsible for managing FTX’s operations in Sam Bankman’s stead. 

Meanwhile, Sam will remain with FTX to assist in its “orderly transition.”

John Ray III added,

"The FTX Group has valuable assets that can only be effectively administered in an organized, joint process."



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


Besides FTX International, a total of 130 subsidiary firms, including FTX US, Alameda Research, and West Realm Shires, have also initiated their bankruptcy proceedings.

In fact, the filings for Alameda Research alone account for $10B to $50B worth of liabilities from over 100K creditors.

Currently, FTX International has suspended all withdrawals. FTX US has advised users to move their assets off the platform as it may soon halt trading services.

Sam Bankman tweeted that although FTX has filed for bankruptcy, the exchange may still be able to provide funds to its user base.

Ayush Pande

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

In the words of John Ray III, “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.”

The curtains have finally come down on the FTX liquidity crisis as the exchange has filed for Chapter 11 bankruptcy in Delaware’s Federal Court, with Sam Bankman-Fried stepping down as its CEO.

This marks one of the biggest collapses in the crypto industry since Celsius declared insolvency in July.

As per FTX’s press release, John J. Ray III was appointed as the CEO of FTX. Ray, who has previously overseen Enron’s bankruptcy process, will now be responsible for managing FTX’s operations in Sam Bankman’s stead. 

Meanwhile, Sam will remain with FTX to assist in its “orderly transition.”

John Ray III added,

"The FTX Group has valuable assets that can only be effectively administered in an organized, joint process."



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


Besides FTX International, a total of 130 subsidiary firms, including FTX US, Alameda Research, and West Realm Shires, have also initiated their bankruptcy proceedings.

In fact, the filings for Alameda Research alone account for $10B to $50B worth of liabilities from over 100K creditors.

Currently, FTX International has suspended all withdrawals. FTX US has advised users to move their assets off the platform as it may soon halt trading services.

Sam Bankman tweeted that although FTX has filed for bankruptcy, the exchange may still be able to provide funds to its user base.

Written by
Ayush Pande