FTX Estimates That It May Have Over 1 Million Creditors in Its Upcoming Bankruptcy Petition

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Last Updated on November 15, 2022 by Bitfinsider

According to a new bankruptcy filing, the beleaguered cryptocurrency exchange FTX may have more than one million creditors, indicating the enormous impact of its failure on crypto traders.

FTX said in its Chapter 11 bankruptcy petition filed last week that it had more than 100,000 creditors with claims.

However, in an updated filing on Tuesday, the company’s attorneys stated: “There may be more than one million creditors in these Chapter 11 cases.”

In such situations, debtors are typically compelled to give a list of the names and addresses of the top 20 unsecured creditors, according to the attorneys. However, considering the magnitude of its debts, the group plans to submit a list of its 50 largest creditors by Friday at the latest.

According to the filing, each of FTX’s principal parent businesses has selected five new independent directors, including former Delaware district judge Joseph J. Farnan, who will serve as the company’s lead independent director.

The company’s attorneys said that FTX has been in communication with “dozens” of U.S. and international regulators during the previous three days. Among these are the U.S. Office of the United States Attorney, the Securities and Exchange Commission, and the Commodity Futures Trading Commission.

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