Cryptocurrency exchange FTX has officially filed for bankruptcy.
The Bahamas-based company, recently valued as high as $32 billion, said on Friday morning that it will file for Chapter 11 bankruptcy proceedings in federal court in Delaware.
Sam Bankman-Fried has also stepped down as CEO and has been replaced by John J. Ray III, though the outgoing chief will stay on to assist with the transition.
“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 the new FTX chief, Ray.
“The FTX Group has valuable assets that can only be effectively administered in an organized, joint process. 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,” continued Ray.
He added that stakeholders should understand that events have been fast-moving and the new team is engaged only recently and that they should review the materials filed on the docket of the proceedings over the coming days for more information.