November 22, 2022
According to a filing in a U.S. bankruptcy court on November 11, the collapsed cryptocurrency exchange, FTX, owes its 50 largest creditors nearly $3.1 billion.
The ordeal of FTX, which has been largely blamed on mismanagement of funds, became public about a week ago when former CEO Sam Bankman-Fried began seeking a bailout from rival company Binance. The bankruptcy also reduced its Bankman-Fried,’s paper fortune from more than $15 billion to almost nothing in a matter of days.
FTX owes approximately $1.45 billion to its top ten creditors, according to a court filing over the weekend. The largest creditor owes $226 million. It stated that it owes approximately $1.45 billion to its top ten creditors.
On November 11, FTX and its affiliates filed for bankruptcy in Delaware, in one of the most high-profile crypto meltdowns, leaving an estimated 1 million customers and other investors with total losses in the billions of dollars.
According to the group, it has contacted “dozens” of U.S. and international regulatory agencies, including the U.S. Attorney’s Office, the US Securities and Exchange Commission, and the Commodity Futures Trading Commission.
Meanwhile, authorities in the Bahamas, where FTX is headquartered, have launched an investigation to determine whether any criminal misconduct occurred in connection with the company’s fall.
The sources for this piece include an article in Reuters.
