Collapsed crypto exchange FTX owes top 50 creditors over $3 billion, new filing says

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  • A list of FTX’s top 50 unsecured creditors shows that the largest lender of the bunch is owed more than $226 million.
  • Overall, unsecured claims amount to $3.1 billion.
  • FTX filed for Chapter 11 bankruptcy protection earlier this month.

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Embattled cryptocurrency exchange FTX owes its creditors $3 billion, according to a new filing over the weekend.

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A list of FTX’s top 50 unsecured creditors, which does not include their names and other identifiable information, shows that the largest of them are owed more than $226 million. The second largest unsecured creditor is claiming more than $203 million in unpaid debt from FTX.

Overall, unsecured claims – labeled as if they were not secured by collateral – amounted to $3.1 billion. According to an earlier bankruptcy filing, FTX may have more than 1 million creditors.

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Disgraced founder of FTX, Sam Bankman-Fried, stepped down as CEO earlier this month as the company filed for Chapter 11 bankruptcy protection.

FTX, which was once worth $32 billion, collapsed within days after the CEO of a rival firm, Binance, said his exchange would destroy its FTT token. FTT, FTX’s native token, fell as a result, leaving FTX illiquid.

The Securities and Exchange Commission and the Justice Department are reportedly investigating what happened.

Bitcoin and other cryptocurrencies were trading lower on Monday. More than $260 billion in crypto market value has been wiped out since Zhao’s 6 November tweet.

Bankman-Fried has been accused by her peers of major mismanagement and fraud in the crypto industry.

According to earlier CNBC reporting, his exchange allegedly used customer funds to conduct risky trades.

In a damning account of FTX’s demise last week, its new CEO John Ray III said in a filing that several of the FTX Group companies “did not have appropriate corporate governance.”

On Thursday, FTX said it had credible evidence that the exchange had taken assets into the custody of the Bahamian government.

The company’s new chief is now seeking to sell off or reorganize his global empire.

Neither FTX nor Bankman-Fried were available for comment when contacted by CNBC on Monday.

Crypto investors have been burned this year by several high-profile failures that have caused ripple effects. Earlier this year, the collapse of the so-called stablecoin TeraUSD affected many companies and contributed to the downfall of major hedge fund Three Arrows Capital.

The latest collapse to shake the market has raised questions about the opacity of big businesses in crypto, an industry that is often seen as more decentralized and transparent than traditional finance.

Bank of England deputy governor John Cunliffe said the FTX debacle has given regulators more incentive to crack down on cryptocurrencies.

“We shouldn’t wait until this gets bigger and bigger to develop the regulatory framework needed to prevent a crypto shock, which is very likely to happen,” Cunliffe said in a speech at Warwick Business School on Monday. could have a more destabilizing effect.”

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