FTX owes $3.1 billion to its 50 largest creditors
The bitcoin exchange FTX, which is undergoing bankruptcy proceedings, and related entities have outstanding obligations to their 50 largest creditors totaling $3.1 billion. This is according to court filings.
— Wu Blockchain (@WuBlockchain) November 20, 2022
The names of creditors are not disclosed; the largest creditor had claims of $226 million. Overall, the sums range from tens of millions to hundreds of millions of U.S. dollars.
The investigation into the listed sums, including payments that may have been made but are not yet reflected in reports, is ongoing. Work is also underway to obtain full access to client data, — the document states.
On November 15, FTX reported having more than a million creditors .
Bloomberg called an unlikely return of funds to clients.
According to Crypto Fund Research, losses for crypto funds stemming from FTX’s bankruptcy could amount to up to $5 billion. The crisis has affected 25-40% of crypto-industry investment vehicles that had invested in the bitcoin exchange or its utility token FTT.
The current CEO of the exchange, John Ray, blamed its former management for concealing the illicit use of customer funds.
Lawyers interviewed by the press expressed pessimism about the former head’s future. In their view, the U.S. Department of Justice has everything it needs to bring criminal charges against Bankman-Fried and other top executives.
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