Image: © Stanislav/Stock.adobe.com
Recent bankruptcy filings suggest FTX may have more than 1m creditors, with the top 10 creditors owed roughly $1.45bn.
Collapsed cryptocurrency exchange FTX has revealed that it owes nearly $3.1bn to its 50 largest creditors.
The creditors were revealed in a filing in the Delaware bankruptcy court, with their names redacted. The documents show the top 10 creditors are each owed between $100m and $226m, adding up to a total of roughly $1.45bn.
FTX announced on 11 November that it had filed for bankruptcy. The collapse of one of the biggest exchanges has caused a significant fallout in the crypto market.
the list of the top 50 creditors in the FTX bankruptcy was published today. names have been redacted, but we can see that ten parties have claims between $100M and $226M pic.twitter.com/P0s7lKFMNE
— Molly White | @molly0xfff@hachyderm.io (@molly0xFFF) November 20, 2022
The details on the top 50 creditors only scratch the surface of the potential impact of the FTX collapse. Recent bankruptcy filings suggest the exchange may have more than 1m creditors, which could mean a massive impact on crypto traders.
The crypto exchange said it has launched a strategic review of its global assets and plans to sell or reorganise some of its businesses, Reuters reports.
It is currently under investigation from multiple authorities, due to claims that company founder and former CEO Samuel Bankman-Fried (SBF) secretly transferred $10bn of customer funds from FTX to his trading company Alameda.
Earlier this month, a source told Reuters that the US Securities and Exchange Commission is investigating FTX’s handling of customer funds and its crypto-lending activities. Authorities in the Bahamas are also investigating whether any criminal misconduct occurred.
FTX’s Bahamas-based unit filed for bankruptcy protection in the US last week. Authorities in the Bahamas have also taken control of cryptocurrency assets held by FTX for “safekeeping”.
Last week, a US House committee said that it plans to hold a hearing next month to investigate the collapse of FTX.
FTX was started in 2019 by SBF, who also co-founded the crypto-focused trading firm Alameda in 2017.
The crypto exchange reached a valuation of $18bn in a 2021 funding round, which saw backing from major tech investors such as SoftBank and Sequoia. It had more than 1m users on its mobile and desktop platforms at its peak and made more than $1bn in revenue last year, according to 2022 statistics.
10 things you need to know direct to your inbox every weekday. Sign up for the Daily Brief, Silicon Republic’s digest of essential sci-tech news.
