FTX Owes Over $3 Billion to Top 50 Creditors: Court Deposit

Collapsed cryptocurrency exchange FTX owes nearly $3.1 billion to its 50 largest creditors, according to a Chapter 11 bankruptcy filing. It was previously reported that the company may have more than 1 million creditors in total.

The archive, which highlights the scale of potential losses facing FTX clients, also reveals that the top ten creditors alone have more than $100 million each in unsecured claims. Together they owe $1.45 billion.

  • The largest single claim from a creditor is $226 million, followed by another claim at $203 million.
  • The document, which was prepared by bankruptcy lawyers, also noted that the debt figures do not include anything owed to insiders of the cryptocurrency exchange and could change as more information is revealed.
  • Debtors have full access to customer data.
  • This news comes after FTX Trading Ltd. And approximately 101 additional affiliates – “FTX debtors” – announced the launch of a strategic review of their global assets to begin maximizing recoverable value for stakeholders.
  • The group had filed for bankruptcy in Delaware on November 11 in what has been described as one of the largest cryptocurrency crashes.
  • Several shocking revelations have since been made by FTX’s new CEO John J. Ray III, who has accused the FTX Group of not maintaining reliable financial information, or security controls, regarding its digital assets.
  • It also alleged that former FTX CEO Sam Bankman-Fried, along with co-founder Gary Wang, controlled access to key companies’ digital assets. Ray also criticized the use of software to hide the misuse of client funds.
  • Court-appointed Bahamian liquidators have also alleged that FTX may have engaged in serious fraud and mismanagement.

FTX Holds Over $3 Billion to 50 Biggest Creditors: Court File appeared first on CryptoPotato.

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