FTX Owes Approximately $3.1 Billion to 50 Biggest Creditors
Collapsed cryptocurrency exchange FTX owes nearly $3.1 billion to its 50 biggest creditors according to a filing in a US bankruptcy court.
The largest creditor is owed approximately $226 million. FTX owes approximately $1.46 billion to its top 10 creditors.
The affiliates of FTX and the company itself filed for bankruptcy in Delaware on November 11. An estimated one million creditors have witnessed losses. The numbers have not yet been confirmed due to alleged poor record keeping by FTX.
The implosion and eventual collapse of FTX has sent the crypto market down a spiral. The paper fortune of FTX’s founder, Sam Bankman-Fried has taken a plunge from $15 billion to almost nothing.
FTX was second biggest crypto exchange in the world after Binance. However, due to the concerns of its solvency sparked a surge in withdrawals, exposing FTX’s empty claims of possessing assets worth billions of dollars.
FTX launched a strategic review of its global assets on Saturday and was preparing for the sale or reorganisation of some businesses after hiring investment bank Perella Weinberg Partners.
The company has been taken over by bankruptcy experts. According to a separate filing court, a hearing of FTX’s first-day motions is set for the morning of 22nd November before a US bankruptcy judge.
The crypto exchange on Sunday stated the cryptocurrency stolen in the final stages of the collapse was being transferred to other exchanges. FTX has asked other exchanges to help return the assets to the bankruptcy court. According to analyst tracking the transactions, the allegedly stolen cryptocurrency was worth $270 million.