Cryptocurrency Exchange FTX Files for Chapter 11 Bankruptcy
Cryptocurrency exchange FTX and 130 of its affiliates filed for Chapter 11 protection on November 11, 2022 in Delaware. The company’s collapse came shortly after its rival Binance walked away from a proposed acquisition of FTX, which left the company scrambling to raise billions of dollars amid a rush of customers withdrawing funds from the exchange.
FTX, a top five cryptocurrency exchange before its implosion, reportedly had at the time of the Chapter 11 filing $9 billion in liabilities and $900 million in liquid assets.
Although it is too early to know the eventual impact, FTX's collapse is certain to ripple through the crypto space.