Per Reuters and CNBC
After Sam Bankman-Fried left FTX Digital Markets, the parent company of FTX US located in the Bahamas, the company filed for Chapter 15 bankruptcy.
Here's what happened:
- FTX initially filed for Chapter 11 bankruptcy protection in the US.
- SBF stepped down as CEO and was succeeded by John J. Ray III.
- FTX's Bahamas unit, FTX Digital Markets, filed for Chapter 15 bankruptcy.
Chapter 15 bankruptcy is a legal filing allowing foreign debtors to file for bankruptcy in the US court system. This is for insolvency cases of people or businesses with assets in multiple countries.
If successfully filed, FTX will have effectively protected itself from creditors in the US.
