FTX Owes Close to $3.1 Billion to Its Top 50 Creditors, Reveals Court Filing

The 50 largest claims are all from customers owed $21 million (roughly Rs. 170 crore) or more.

FTX Owes Close to $3.1 Billion to Its Top 50 Creditors, Reveals Court Filing

Photo Credit: Unsplash/ Jonathan Borba

The identities of the creditors were redacted by FTX in its recent court filing.

Highlights
  • FTX's top ten creditors are owed about $1.45 billion
  • FTX and its affiliates filed for bankruptcy on November 11
  • FTX prior to its collapse was the world's third-largest exchange

Embattled cryptocurrency exchange FTX owes more than $3 billion (roughly Rs. 18,346 crore) to its top 50 creditors. A filing from its Chapter 11 bankruptcy protection proceedings on Saturday revealed the amount owed to unidentified creditors, with the biggest being slightly more than $226 million (roughly Rs. 2,240 crore). According to the filing, its top 10 creditors come in at just under $1.45 billion (roughly Rs. 11,771 crore). In total, it added up to almost $3.1 billion (roughly Rs. 25,166 crore).

Even though the filing did not disclose the names of the parties wrapped up in the swift demise of FTX, the document makes clear the scope of the potential losses its clients face.

FTX's top ten creditors alone have more than $100 million (roughly Rs. 812 crore) each in unsecured claims, according to the filing, equal to more than $1.45 billion (roughly Rs. 11,771 crore) combined. The filing explained that the debt does not involve anything owed to company insiders and is subject to change as more information becomes available.

The company also stated in the motion that its debt figures may not be entirely accurate because there could be payments that have already been made out to creditors, but aren't reflected on the company's books or records.

In the US, bankrupt companies are required to disclose information about their debts as part of insolvency proceedings. Creditors will get to weigh in for FTX to repay its debts as the bankruptcy unfolds.

FTX said it has assets and liabilities of at least $10 billion (roughly Rs. 81,181 crore) each in preliminary court papers. The case may involve more than one million creditors, according to lawyers for FTX.

FTX was once the world's third-largest exchange with a valuation of nearly $32 billion (roughly Rs. 2,59,780 crore) before a liquidity crisis toppled the company earlier this month. Bankman-Fried announced on November 11 before stepping down that FTX, his trading firm Alameda Research, and affiliated companies would file for bankrupty.


What are the best wireless and wired earphones you can buy in India? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Further reading: Cryptocurrency, FTX
Shomik Sen Bhattacharjee
Shomik is a senior sub-editor at Gadgets 360. As someone who's screened the consumer tech space for the past four years, he's now shifted focus to the crypto-verse. When not converting currency values in his head, you may find him in an intense five-a-side football match or grinding out the newest Destiny 2 weekly challenge on his Xbox. You can reach him for tips or queries at ShomikB@ndtv.com. More
Oukitel WP21 Rugged Phone With 9,800mAh Battery, Dual-Displays, Night Vision Camera Unveiled: All Details
Featured video of the day
Qualcomm's Fastest Chipset Launched, and Review of the Sony WF-LS900N Earbuds
Share on Facebook Tweet Snapchat Share Reddit Comment google-newsGoogle News

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2022. All rights reserved.