On November 14, 2022, the CFTC announced that, on November 11, 2022, counsel for LedgerX LLC, d/b/a FTX US Derivatives (FTX), submitted to the CFTC's Division of Clearing and Risk (DCR) a formal withdrawal of FTX’s request to amend FTX’s amended order of registration as a derivatives clearing organization (DCO) which would have permitted FTX to offer margined crypto derivatives products that were not fully collateralized directly to participants rather than clearing the products through a futures commission merchant (FCM). According to the CFTC, it had not approved the FTX application before receipt of the FTX request to withdraw.

The FTX request to amend was originally submitted to the CFTC on December 6, 2021. On March 10, 2022, the CTFC issued a request for comment on a proposal from FTX, to amend its order of registration as a DCO to permit FTX to clear crypto futures contracts and options futures contracts that are non-intermediated – that is, an FCM need not be interposed between market participants and the DCO (see Legal Update, Crypto Exchange FTX Files with CFTC to Offer Disintermediated Retail Crypto Derivatives).

The FTX proposal had initially received a positive response from, and piqued interest among, the derivatives market and regulators. On May 10, 2022, in a keynote address by CFTC Chairman Rostin Behnam at the ISDA 36th Annual General Meeting, noted in reference to the FTX DCO request that, "The request represents an innovative proposal that deserves careful consideration as to whether its operation will meet core principles that prioritize customer protections, market stability, and resiliency, among other important safeguards."

On November 11, 2022, FTX Trading Ltd. dba FTX.com, announced via a message disseminated through social networks that it, West Realm Shires Services Inc. dba FTX US, Alameda Research Ltd. and approximately 130 additional affiliated companies (collectively, the FTX Debtors), commenced voluntary proceedings under Chapter 11 of the United States Bankruptcy Code in the District of Delaware. John J. Ray III was appointed Chief Executive Officer of the FTX Group after Sam Bankman-Fried resigned as Chief Executive Officer.