FTX Shows Over $3 Billion In Unsecured Debt To 50 Creditors

New court filings for the now-bankrupt FTX crypto exchange have disclosed that it owes its 50 largest unsecured creditors a total of $3.1 billion, with a couple of customers due more than $200 million each.

According to a redacted list of the top 50 creditors posted late Saturday, FTX-linked firms owe more than $226 million to their single largest unsecured creditor. The rest were classified as customers, and eleven of them have claims totaling more than $100 million.

FTX stated that firm has assets and liabilities totaling at least $10 billion. According to its lawyers, the action may involve more than one million creditors.

Currently, FTX is in the process of filing for bankruptcy, where around one million creditors are expected to chase the liquidation. Bankman-Fried has already stepped down from management and was replaced by Enron liquidator John J. Ray III as CEO.

Ray was reportedly shocked upon seeing “a complete failure of corporate controls and such a complete absence of trustworthy financial information” in the crypto exchange.

FTX’s implosion has dragged some of the biggest names in the crypto industry. Most recently, Genesis Global’s lending arm announced that it is temporarily freezing redemptions and new loan originations after declaring it has around $175 million locked in FTX. 

Earlier this week, Ikigai Asset Management and BlockFi each revealed their exposure to FTX, resulting in the firms halting their respective withdrawals. In its Q3 2022 report, Galaxy Digital reportedly had around $76.8 million in cash and digital assets invested in the embattled crypto exchange, around $47.5 million of which is in the process of being withdrawn.

Information for this briefing was found via Bloomberg and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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