As per the court filing, cryptocurrency exchange FTX owes its 50 biggest creditors almost $3.1billion. The collapsing firm, which filed for bankruptcy in the US last week, reveals it owes about $1.45billion to its top 10 creditors but has not mentioned which one.
The collapse of the world’s second-largest crypto exchange shook belief in the already unsettled cryptocurrency market. This collapse made the exchange’s boss Sam Bankman-Fried step down from his role. The exchange’s previous bankruptcy filings showed more than 1 million people and businesses could be owed money after its collapse.
On Saturday, FTX said it had embarked on a review of its global assets and was readying for the sale or reorganization of some companies.
A court hearing before a US bankruptcy judge has been designated for Tuesday.
Also read: Temasek says FTX is not worth investing now
It is vague how much people who have funds in the exchange will get back at the end of bankruptcy proceedings, though many professionals have warned it may be a small fraction of what they put into the company, In fact, last week, new FTX chief executive John Ray hit out at the way the fallen exchange was run, expressing that he had never witnessed such a complete failure of corporate controls.
Mr. Ray, who replaced Mr. Bankman-Fried, criticized a complete absence of trustworthy financial information.
Sam Bankman-Fried told the Vox news website he regretted filing for bankruptcy, stating the decision had mainly taken financial matters out of his control. He also expressed contempt for financial regulators.
The way things are transpiring it seems like the whales are not getting anything out of this until some serious court action.
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