Crypto Exchange FTX Owes $3B to Top 50 Lenders – IT Pro – News

Cryptocurrency exchange FTX owes its top 50 creditors more than $3 billion. This is according to a court document. The largest creditor is expected to receive more than $225 million from the bankrupt company.

Ten creditors have claims of $100 million or more, says Bloomberg. The information comes from a mandatory document from the bankrupt company, which lists the fifty largest creditors. That list can be found online. There are no creditors’ names; the statements are made anonymous.

All 50 creditors filed claims for at least $21 million, bringing the total to $3.1 billion. In total, the cryptocurrency exchange may have more than a million creditors. This is because customers have lost their cryptocurrency due to the bankruptcy.

Cryptocurrency exchange FTX ran into trouble earlier this month when it was discovered that the exchange was linked to Alameda Research, as a result of which the company was revealed to have fewer liquid assets than previously thought. This especially became a problem when the CEO of Binance, FTX’s biggest competitor, sold its FTT tokens. FTT is the currency of FTX itself. That sale sparked a bank run, with users selling their tokens and the value plummeting.

FTP extension filed for deferred payment earlier this weekwhere the company under the supervision of a bankruptcy judge investigates how interested parties can recover as much money as possible. The company must develop a restructuring plan. Bankman-Fried stepped down as CEO on Friday. US market regulator SEC is investigating the situation at FTX. Binanza it would initially detect FTXbut he later refrained from doing so.