FTX crypto scandal: exchange owes $3.1bn to creditors, as bankruptcy hearing set for Tuesday
10:32, 21 November 2022
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.
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.
