- New court filings reveal that the fallen crypto exchange FTX owes over $3B to its 50 largest creditors.
- The revelation emerged as part of FTX’s filings in the Delaware Bankruptcy Court.
- The massive cash includes over $1B that the exchange owes its top ten creditors. FTX stated that it was reviewing the data and could update the list.
FTX, once among the leading crypto firm, lost billion due to risk bets via Alameda Research, an affiliated trading company, utilizing investor funds. Former chief executive officer Sam Bankman-Fried quit his position earlier this month while filing for insolvency.
Meanwhile, the trading company collapse wiped out nearly all of $26B SBF’s net worth. FTX owes the largest creditor about $276 million, whereas its 15th-leading creditor needs about $21 million. Nevertheless, the numbers might be minimal compared to what the exchange owes, considering FTX last week’s confession that it might have over 1 million creditors.
The bankruptcy crypto exchange owes the 3rd-largest creditor $174 million. Though unconfirmed, the number matches what Genesis, a crypto lender, revealed ten days ago – having $175 million locked in FTX.
Meanwhile, an earlier filing suggested withholding of info about these FTX creditors and their details. The motion trusted that revealing the identification of some creditors might tip off predacious companies.
That might mean giving debtors’ rivals unfair advantages to reach out and poach those clients, interfering with the debtors; capability to sell assets & timely maximize asset value. Meantime, FTX appointed John Ray III as the new CEO to mitigate damages and clean up the firm amid the insolvency process.
Ray confirmed that he has never witnessed what FTX suffered in the absence of his career without corporate control and a lack of trustworthy monetary information.
He wrote that the event remained unprecedented considering faulty supervisory oversight abroad, compromised systems honesty, and power concentration to inexperienced, possibly compromised, and unsophisticated individuals.
Nevertheless, FTX hasn’t identified or labeled creditor and customer information amid its bankruptcy case. That triggered the move to consolidate the creditors in one file. Such an approach will ensure prompt revelation of available and relevant information.
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