Crypto exchange FTX owes nearly .1 billion to top 50 creditors |  Cryptocurrencies

Crypto exchange FTX owes nearly $3.1 billion to top 50 creditors | Cryptocurrencies

Collapsed cryptocurrency exchange FTX owes its 50 biggest creditors nearly $3.1bn (£2.6bn), according to a filing with a US bankruptcy court.

The exchange owes about $1.45 billion to its top 10 creditors, it said in a court filing over the weekend, without naming them. The largest creditor owes $226 million.

The collapse of FTX shook the cryptocurrency industry and reduced the paper fortune of its 30-year-old founder, Sam Bankman-Fried, from over $15 billion to almost nothing in a matter of days.

FTX and its subsidiaries filed for bankruptcy in Delaware on November 11, leaving around 1 million creditors, although the extent of the losses is not yet fully known due to alleged poor record keeping. The company said on Saturday that at least 101 companies worldwide were part of the bankruptcy proceedings.

The exchange was the second-largest in the world until concerns over its solvency triggered a surge in withdrawals, which revealed it had no assets worth the notional billions of dollars that it had. he demanded.

The company, which has been taken over by bankruptcy experts, said on Saturday it had launched a strategic review of its global assets and was preparing for the sale or reorganization of certain businesses, with the hiring of the bank d Perella Weinberg Partners investment. A hearing on FTX’s first-day motions is scheduled for Tuesday morning before a U.S. bankruptcy judge, according to a separate court filing.

FTX warned on Sunday that stolen cryptocurrency in the final stages of its collapse was being transferred to other exchanges. The allegedly stolen cryptocurrency was worth $270 million on Sunday, according to analysts who track the transactions. FTX asked other exchanges to help return the assets to the bankruptcy court.

(1/2)  Exchanges should be aware that certain funds transferred from FTX Global and related debtors without authorization on 11/11/22 are being transferred to them through intermediate wallets.

— FTX (@FTX_Official) November 20, 2022

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(1/2) Exchanges should be aware that certain funds transferred from FTX Global and related obligors without authorization on 11/11/22 are being transferred to them via intermediary wallets.

—FTX (@FTX_Official) November 20, 2022

FTX had secured backing from prominent investors including venture capital firm Sequoia Capital, the world’s largest asset manager BlackRock and a series of well-known hedge fund managers. He also paid endorsements from celebrities like American football star Tom Brady and comedian Larry David.

The company named John Ray III, a restructuring expert who previously oversaw the Enron bankruptcy, one of the most notorious and significant frauds in US history, as chief executive. In a filing with the Delaware bankruptcy court, he wrote: “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of reliable financial information as has produced here.”

Speaking on Monday, a deputy governor of the Bank of England said the implosion of FTX showed the need to bring crypto into the regulatory framework.

“While the crypto world…is not currently large enough or interconnected enough with traditional finance to threaten the stability of the financial system, its ties to traditional finance have grown rapidly,” Jon Cunliffe said during a Warwick Business School event.

“We should not wait until it is big and connected to develop the regulatory frameworks needed to prevent a crypto shock that could have a much larger destabilizing impact,” he added.

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