Bankrupt crypto exchange FTX owes its top 50 creditors about $3 billion

FTX filed for bankruptcy on November 11 after a week in a liquidity crisis.

Bankrupt crypto exchange FTX owes its 50 biggest creditors nearly $3.1 billion.
All 50 of FTX’s largest creditors are customers. The biggest creditor is owed more than $226 million.
Collectively, FTX owes about $1.45 billion to its top 10 creditors.

Bankrupt crypto exchange FTX owes its 50 biggest creditors nearly $3.1 billion, according to a Saturday court filing seen by Insider.

The exchange — which was worth $32 billion earlier this year — filed for Chapter 11 bankruptcy on November 11, after a week of liquidity crisis. Its 30-year-old founder Sam Bankman-Fried also resigned as CEO.

All 50 of FTX’s largest creditors are customers. The single biggest creditor is owed more than $226 million, according to the Saturday filing. Its second largest creditor is also owed over $200 million, while another eight are owed over $100 million each. Collectively, FTX owes about $1.45 billion to its top 10 creditors, according to the redacted list.

Last week,  FTX said it may have over 1 million creditors — 10 times more than its initial estimate of 100,000 creditors.

FTX’s new CEO John J. Ray —  who oversaw the bankruptcy of Enron in 2001 — said he had never seen “such a complete failure of corporate controls and such a complete absence of trustworthy financial information” as at FTX.

FTX  said in a press release on Saturday it was launching a “strategic review” of its global assets, and is preparing for the sale or reorganization of some of its businesses.

“I have instructed the team at the FTX Debtors to prioritize the preservation of franchise value as best we can in these difficult circumstances,” Ray said in its Saturday press release.

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Source:: Businessinsider

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