FTX owes nearly $3.1 billion to top 50 creditors, court filings revealed
Struggling crypto exchange FTX owes more than $3 billion (approximately Rs 18,346 crore) to its top 50 creditors. A filing from Chapter 11 bankruptcy protection on Saturday revealed amounts owed to unspecified creditors, the largest of which is a little over $226 million (about Rs 2,240 crore). According to the filing, its top 10 creditors have just under $1.45 billion (about Rs 11,771 crore). In total, it added nearly $3.1 billion (about Rs 25,166).
Although the filing does not reveal the names of the parties involved in the rapid demise of the FTXthe document outlines the range of potential losses its customers face.
FTX’s top ten creditors alone have more than $100 million (about Rs. 812 crore) each in unsecured claims, which, according to the filing, equates to more than $1.45 billion (approximately Rs. 1.45 billion) 11,771 Rs. crore) combined. The filing explains that the debt is not linked to any debt owed by those in the company and is subject to change as more information becomes available.
The company also states in the petition that its debt figures may not be entirely accurate as there may be payments made to creditors that are not reflected on the books or records. of the company.
United States, bankrupt company are required to disclose information about their debts as part of an insolvency proceeding. Creditors will have to consider having FTX pay its debts when bankruptcy occurs.
FTX said it has assets and liabilities of at least $10 billion (about Rs. 81,181 crore) each in preliminary court papers. According to FTX’s attorney, the case may involve more than a million creditors.
FTX was once the world’s third largest exchange with a valuation of nearly $32 billion (approximately Rs 2,59,780) before a liquidity crisis toppled the company earlier this month. Bankman-Fried announced on November 11 before his resignation that FTX, his trading firm Alameda Research and its affiliated companies would file for bankruptcy.