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Fallen Crypto Exchange FTX Owes Over $3.1bn to its Largest Creditors

Avatar Written by Abdullah Shahid · 1 min read>
FTX
FTX who filed for bankruptcy just last week revealed that it owes money to over more than one million people and businesses

Once regarded as the world’s third largest crypto exchange, bankrupt crypto exchange ‘FTX’, just announced that it currently owes over $3.1 billion (PKR 698,446,120,000) to 50 of its biggest creditors.

The numbers were revealed by FTX in its recent court filing after it announced bankruptcy just last week. It was also revealed that from the $3.1 billion owed, the firm owes around $1.45 billion to its top 10 creditors. As of now, the firm refuses to name any of the creditors.

FTX’s massive collapse was not just a disaster for CEO Sam Bankman Fried who lost 94% of his wealth in a day but also its creditors and other crypto based businesses and exchanges.

Reports suggest that soon after FTX fall, investors started to lose confidence in other credible crypto exchanges. Crypto and blockchain based businesses also saw a loss in users thus resulting in a lot of industry giants criticizing FTX.

FTX bankruptcy filings revealed that currently the exchange owes money to over a million people and businesses. Following the events , FTX will soon start reviewing its global assets and reorganize or sell some of its business ventures.

While the fallen organization is hoping to pay off most of its creditors, the hopes are quite low. Crypto experts have revealed that the creditors will probably receive only a fraction of the money they put into the firm.

Currently FTX’s former CEO has stepped out from his position and new CEO John Ray has revealed information about the operations of FTX. “Complete absence of trustworthy financial information” said Ray while criticizing operations under ex-CEO Sam Bankman.

 

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