CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

FTX crypto scandal: exchange owes $3.1bn to creditors, as bankruptcy hearing set for Tuesday

By Daniela Ešnerová

10:32, 21 November 2022

Broken FTX logo
FTX owes its biggest creditor over $260m – Photo: Shutterstock

Collapsed cryptocurrency trading platform FTX owes a whopping $3.1bn (£2.6bn, €3.6bn) to its 50 largest creditors, documents filed to a Delaware bankruptcy court show

The list of creditors – whose names have been redacted – reveals that the top 10 featured parties have claims between $100m and $260m, totalling more than $1.4bn.

The document lists FTX’s 50 biggest claimants, but the defunct company has more than a million creditors in total, a separate court filing shows.

FTX also filed motions with the bankruptcy court for an interim relief that would allow it to pay its main creditors.

FTX token (FTT) to US dollar

The list of FTX 50 largest creditors, published on Saturday, includes claims that the debtor disputes. It doesn't include claims by any person or entity who is an insider.

Bankruptcy court hearing

FTX – which was the world’s second-largest cryptocurrency platform at just the begining of month – filed for Chapter 11 bankruptcy protection in the US on 11 November, 2022 after a tumulous week when the company wasn’t able to satisfy its clients’ withdrawals requests.

Gold

2,395.84 Price
-0.190% 1D Chg, %
Long position overnight fee -0.0196%
Short position overnight fee 0.0114%
Overnight fee time 21:00 (UTC)
Spread 0.30

ETH/USD

3,443.39 Price
-1.580% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

US100

19,781.50 Price
+1.330% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 1.8

XRP/USD

0.61 Price
+1.950% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

At the time, Sam Bankman-Fried, founder of both FTX and Alameda and former FTX’s CEO, resigned from his role. He was replaced by John Ray, a bankruptcy lawyer famous for overseeing the recovery of assets from energy firm Enron, which went bust in 2001.

Ray has assumed the role of FTX’s CEO and chief restructuring officer. As part of the bankruptcy process, FTX launched a strategic review of its global assets to “begin to maximise recoverable value for stakeholders”.

“The FTX debtors have filed today various motions with the Bankruptcy Court seeking interim relief from the court that, if granted, would allow the operation of a new global cash management system and the ordinary course payment of critical vendors and vendors at foreign subsidiaries,” the bankrupt company said in a statement on Friday.

The hearing was scheduled for Tuesday, 22 November, 2022.  

 

Rate this article

Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 630,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading