FTX crypto exchange owes biggest creditors $3.1bn

Image source: Investing.com UK

According to a court document, cryptocurrency exchange FTX owes its 50 biggest debtors over $3.1 billion (£2.6 billion).

The troubled company, which filed for bankruptcy in the US last week, claims to owe its top 10 creditors $1.45 billion, although it has not named any of them.

The second-largest cryptocurrency exchange in the world going under has rocked the already unstable cryptocurrency market’s faith.

Sam Bankman-Fried, the head of the exchange, also resigned as a result of it.

Following its collapse, more than one million people and businesses may be owed money, according to FTX’s prior bankruptcy filings.

FTX announced on Saturday that it has started an assessment of its global assets and is getting ready to sell or reorganise some businesses.

Tuesday will see a court appearance before a US bankruptcy judge.

Although many analysts have cautioned that it may only be a small portion of what they invested in the company, it is unknown how much those who have cash in the exchange will receive back after bankruptcy proceedings.

John Ray, the newly appointed chief executive of FTX, criticised the management of the defunct cryptocurrency exchange last week, claiming he had never “seen such a catastrophic collapse of corporate controls.”

Mr. Ray, who took over for Mr. Bankman-Fried, criticised the “total lack of reliable financial information.”

According to Mr. Bankman-Fried, declaring bankruptcy was a mistake because it largely removed financial matters from his control, as he expressed to the Vox news website. His contempt for financial regulators was also evident.

Leave a Reply

Your email address will not be published. Required fields are marked *