FTX Bankruptcy: Bahamas liquidators transfer case to Delaware, creditors’ names will be redacted

The judge overseeing the FTX cryptocurrency exchange’s bankruptcy case today agreed to keep the names and addresses of the 50 largest creditors – who owe nearly $3.1 billion – redacted until further notice.

Judge John Dorsey made the decision Tuesday in Delaware bankruptcy court during FTX’s first hearing.

Judge Dorsey also said he would formally transfer the Chapter 15 bankruptcy case filed by the Bahamas liquidators from New York to Delaware. The Bahamas regulators previously wanted to gain control over FTX’s bankruptcy proceedings.

James Bromley, attorney for FTX’s new management, called the stock market fall one of “the most sudden and catastrophic crashes in American corporate history,” during the highly publicized case.

document Archived FTX revealed on Saturday that the exchange owes $3.1 billion to the 50 largest creditors. Bromley added that former FTX CEO Sam Bankman-Fried also used digital asset exchange FTX as his “personal fiefdom.”

FTX lost billions of dollars in investor money when it imploded earlier this month.

The exchange allegedly used client funds to undertake risky investment projects through Alameda Research, a trading firm founded by Bankman-Fried.

After running the bank on the stock market, the company was forced to admit that it did not hold individual reserves of clients’ assets, culminating in a withdrawal freeze and subsequent bankruptcy.

This story is developing and will be updated.

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