FTX Owes Over $3 Billion to 50 Largest Creditors: Court Filing

Collapsed crypto exchange FTX owes nearly $3.1 billion to its top 50 creditors, as per filing from its Chapter 11 bankruptcy protection proceedings. It was earlier reported that the company may have more than one million creditors in total.

The filing, which brings clarity to the scope of the potential losses faced by FTX clients, also reveals that the ten largest creditors alone have more than $100 million each in unsecured claims. They are collectively owed $1.45 billion.

  • The largest single claim by a creditor is for $226 million, followed by another at $203 million.
  • The document, prepared by the bankruptcy lawyers, also noted that the debt figures do not involve anything owed to the insiders of the crypto exchange and are subject to change as more information unravels.
  • The debtors are working to access full access to customer data.

  • The news comes after FTX Trading Ltd. and approximately 101 additional affiliated companies – “FTX Debtors” – announced the launch of a strategic review of their global assets to begin to maximize recoverable value for stakeholders.
  • The group had filed for bankruptcy in Delaware on November 11 in what was touted as one of the highest-profile crypto implosions.
  • Several shocking discoveries have been made since then by FTX’s newly appointed CEO John J. Ray III, who accused FTX Group of failing to maintain trustworthy financial information, or security controls, with respect to its digital assets.
  • He also claimed that the former FTX chief Sam Bankman-Fried, along with co-founder Gary Wang, controlled access to the digital assets of the main businesses. Ray further criticized the usage of a software for concealing the misuse of customer funds.
  • Court-appointed Bahamian liquidators also argued that FTX might have been involved in serious fraud and mismanagement.

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newsby.top • 2022