FTX faces more than a million creditors

In its bankruptcy filing, FTX said there were about 100,000 creditors, but in reality, the number is 10 times higher.

CNBC quoted FTX 's lawyers : "Under US bankruptcy law, the FTX cryptocurrency exchange has more than one million creditors." Within 72 hours of Sam Bankman-Fried 's filing for bankruptcy, the company's attorneys contacted dozens of regulatory agencies in the US and other countries, including the US Attorney's Office. , Securities and Exchange Commission, Commodity Futures Trading Commission.

Creditors are defined as investment funds and depositors on the FTX exchange. Initially, the company planned to make a list of the 20 largest creditors. However, after consideration, the lawyers will come up with 50 names by November 18.

Sam Bankman-Fried, founder of the FTX exchange. Photo: Coindesk

FTX is not the only crypto company to go bankrupt this year. Previously, two big names, Celsius and Voyager Digital , also faced huge debt after the collapse. In these cases, platform participants are identified as "unsecured creditors", meaning that users are only considered for "compensation" after the interests of large investment funds are settled.

Before its collapse, FTX was valued at $32 billion and had more than a million users. The failure of the company negatively impacted the entire industry as many sought to sell off tokens and move funds off the exchange. On November 14, the CEO of Binance and Crypto sought to reassure the community with a "statement" of the company's financial situation. Changpeng Zhao said Binance's withdrawals have only increased slightly, while Crypto chief Kris Marszalek said the company has a "very strong balance sheet".

On November 11, FTX declared bankruptcy after reports of financial vulnerabilities were published. A wave of sell-off of the exchange's FTT token occurred, causing the token price to drop from $19 to $4. The company's attorneys are facing a serious crisis in handling the related assets and complex business left behind by Sam Bankman-Fried.

Late last week, a CNBC source said that the investment fund Alameda Research, which is closely related to FTX, has "borrowed" billions of dollars from FTX customers. According to US law, these two organizations used customers' money without permission.

Sam Bankman-Fried declined to comment on the allegations involved.

Jamie Burke, CEO and founder of venture capital firm Outlier Ventures, said: "I think the signs of interest in market makers and brokers are becoming increasingly clear. Those are the actions. unethical behavior".

Financial and Cryptocurrency News Forum by Company Remitano Network

Copyright © 2017 - ALO. All rights reserved