FTX files for Chapter 11 bankruptcy

UPDATE (9:45 a.m. ET): According to a bankruptcy filing by Alameda Research, the firm says it has more than 100,000 creditors.

Alameda also said that it has between $10 billion and $50 billion in assets and $10 billion and $50 billion in liabilities.

Per the filing, Alameda is being represented by Delaware-based law firm Landis Rath & Cobb LLP. Attorney Adam Landis is representing the company.

Bankruptcy filing embedded at the end of this report.

Crypto exchange FTX has moved to file for Chapter 11 bankruptcy, along with more than 100 corporate entities affiliated with FTX, including Alameda Research and FTX US, according to a company statement.

In the announcement, FTX said that CEO Sam Bankman-Fried has resigned. John J. Ray III, the Chicago-based attorney known for overseeing the liquidation of Enron, has been appointed to take the position. FTX said it is seeking bankruptcy protection in Delaware.

"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," Ray said in the statement. "I want to ensure every employee, customer, creditor, contract party, stockholder, investor, governmental authority and other stakeholder that we are going to conduct this effort with diligence, thoroughness and transparency."

Subsidiaries not included in the Chapter 11 proceedings include LedgerX LLC, FTX Digital Markets Ltd., FTX Australia Pty Ltd. and FTX Express Pay Ltd.

The move caps a stunning downfall, given FTX's position in the market and public prominence, as well as that of its senior leadership.

A serious liquidity crisis brought on by revelations about its balance sheet pushed FTX toward insolvency. Binance, which signed a letter of intent that could have led to an acquisition, ultimately passed on the deal, citing due diligence concerns as well as reports of investigations by American regulators.

Alameda Research by Mike McSweeney on Scribd