HomeBlockchainBlockchain NewsBankrupt FTX owes $3 billion to its Top Creditors

Bankrupt FTX owes $3 billion to its Top Creditors

According to a court document, the bankrupt cryptocurrency exchange FTX owes its 50 largest creditors close to $3.1 billion.

After experiencing a week-long liquidity problem, the exchange, which had a value of $32 billion earlier this year, filed for Chapter 11 bankruptcy on November 11. Sam Bankman-Fried, its 30-year-old founder, also gave up his position as CEO.

Customers make up all 50 of FTX’s major creditors. According to the Saturday filing, the biggest creditor is owed more than $226 million. Another eight creditors each owe more than $100 million, and its second-largest creditor is also due more than $200 million. According to the redacted list, FTX owes its top 10 debtors a total of $1.45 billion.

Ten times as many as its first estimate of 100,000 creditors, FTX stated last week that it may have over 1 million creditors.

Former Enron CEO John J. Ray, who is now the CEO of FTX, asserted that he had never seen “such a catastrophic failure of corporate controls and such a complete absence of trustworthy financial information” as at FTX.

In a press announcement on Saturday, FTX stated that it had started a “strategic evaluation” of its global assets and was putting some of its businesses up for sale or reorganization.

In a press release on Saturday, Ray stated, he have instructed the team at the FTX Debtors to prioritize the preservation of franchise value as best they can in these challenging circumstances.

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