Failed crypto exchange FTX says its top 50 creditors are seeking $3 billion in damages.
The defaulting company released the amount claimed by each of the top creditors, but did not name them or disclose any information about their headquarters, according to a Nov. United States property for Delaware County.
The exchange founded by former billionaire Sam Bankman-Fried owes about $1.45 billion to its top 10 creditors.
Bankruptcy attorneys from Landis Rath & Cobb and Sullivan and Cromwell, said they included client information that was “viewable but not accessible at this time.”
An investigation into the amounts listed, including “payments that may have been made but not yet reflected on the books and records of the Debtor,” is underway, attorneys said. know on file.
“The debtor is also working to gain full access to customer data,” the filing said. “Debtors will update the Top 50 List, as appropriate, as more information becomes available.”
FTX can have up to a million investors looking to recoup their losses. Bahamian-based brokerage has filed for bankruptcy after facing large numbers Liquidity problems when its acquirer, Binance, backed out of the merger.
“In fact, there could be more than a million creditors in these Chapter 11 Cases,” according to the Nov.
No creditor has been named, but the biggest claimant is $226 million, followed by $203 million and $174 million. Fourth and fifth claims are $159 million and $130 million respectively.
Tom Williams/CQ-Roll Call, Inc via Getty
Investors face total losses
Investors in FTX, a popular digital asset exchange and once valued at $32 billion, are likely face total damage.
FTX is an exchange used by cryptocurrency investors including retail and institutional traders, such as some hedge funds. It is backed by many well-known venture capitalists that have raised $420 million such as SoftBank, Ontario Teachers’ Pension Plan, Sequoia Capital, Temasek, Sea Capital, IVP, ICONIQ Development, Tiger Global, Ribbit Capital, Lightspeed Venture Partners, and Black Rock managed funds and accounts.
Sequoia sent a letter to its limited partners on November 9 saying that it currently values its $210 million investment in FTX at $0 and that it is a total loss.
“Based on our current understanding, we are marking our investment down to $0. “Fund still doing well,” the company said. said in a statement posted on its Twitter account.
Enterprises selling FTX
The company said on November 19 it plan to sell or reorganize John Ray, the restructuring director and new chief executive officer of FTX, said some of its business.
He is rapidly liquidating the group’s assets.
“The debtors of FTX have hired Perella Weinberg Partners LP as the lead investment bank and begin preparations to sell or reorganize certain businesses,” Ray’s office said in a statement Nov.
“Participation of the PWP [Perella Weinberg Partners] subject to the approval of the Court.”
Ray, who was a liquidator at the insolvent energy brokerage Enron, also pointed out that some of FTX’s subsidiaries are solvent, which is good news for the brokerage’s creditors, who who hope to be able to recover some of their money.
“Based on our assessment over the past week, we are pleased to hear that many of FTX’s licensed or licensed subsidiaries, within and outside the United States, have balance sheets, responsible management valuable franchises and responsibilities,” Ray said in the statement.
Some of these subsidiaries – such as LedgerX LLC and Embed Clearing LLC, for example – are not debtors in chapter 11 cases. Other subsidiaries – such as FTX Japan KK, Quoine Pte. Ltd. , FTX Turkey Teknoloji Ve Ticaret A.Ş. , FTX EU Ltd, FTX Exchange FZE and Zubr Exchange Ltd – are debtors.”
A hearing on the company’s first-day petitions is set for November 22 to be presided over by a U.S. bankruptcy judge, according to another separate court filing.
