Cryptocurrency exchange FTX owes more than $3 billion to creditors

Cryptocurrency exchange FTX owes more than $3 billion to creditors

FTX, the cryptocurrency exchange that collapsed earlier this month and filed for bankruptcy protection, said in a court filing on Saturday that it owes its 50 largest creditors more than $3 billion.
The collapsed exchange’s top ten creditors are owed about $1.45 billion. The identities of the creditors are redacted.
John Ray III, who was appointed CEO of FTX after founder Sam Bankman-Fried resigned, also said Saturday that the company has launched a strategic review of the exchange’s assets.
FTX was once the world’s third-largest exchange with a valuation of nearly $32 billion before a liquidity crisis topped the company earlier this month. Bankman-Fried announced on Nov. 11 before stepping down that FTX, his trading firm Alameda Research, and affiliated companies would file for bankruptcy.
NEW FTX BOSS CONDEMNS BANKMAN-FRIED FOR ‘COMPLETE FAILURE OF CORPORATE CONTROLS’
An estimated one million customers and other investors are facing losses in the trillions of dollars.
Ray, an attorney who oversaw the $23 billion bankruptcy of energy firm Enron, wrote in a separate court filing this week that he did “not have confidence” in FTX’s balance sheets.
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“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” Ray said in a filing on Nov. 17.
“From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.”
Fox Business’s Megan Henney contributed to this report, as well as Reuters.

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