FTX Owes 50 Largest Creditors Over  Billion: Court Filing

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

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

The deposit, which clarifies the extent of potential losses suffered by FTX customers, 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 creditor claim is $226 million, followed by another of $203 million.
  • The document, prepared by the bankruptcy attorneys, also noted that the debt figures do not imply anything owed to insiders of the crypto exchange and are subject to change as more information comes to light.
  • Debtors strive for full access to customer data.
  • The 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 Nov. 11 in what was billed as one of the most publicized crypto implosions.
  • Several shocking discoveries have since been made by new FTX CEO John J. Ray III, who has accused FTX Group of not maintaining reliable financial information or security controls regarding its digital assets.
  • He also claimed that former FTX chief Sam Bankman-Fried, along with co-founder Gary Wang, controlled access to the major companies’ digital assets. Ray further criticized the use of software to conceal the misuse of client funds.
  • The Bahamas court-appointed liquidators also argued that FTX may have been involved in serious fraud and mismanagement.

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