The Top 50 Creditors Are Owed Close to $3.1 Billion by Now-bankrupt FTX

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Last Updated on November 21, 2022 by Bitfinsider

The US bankruptcy court has granted protection to the cryptocurrency exchange FTX, which claims to owe its 50 largest creditors over $3.1 billion.

Without naming them, the exchange stated in a court statement on Saturday that its top ten debtors are owed almost $1.45 billion.

In one of the most publicized crypto meltdowns, FTX and its affiliates filed for bankruptcy in Delaware on November 11. As a result, an estimated million consumers and other investors are expected to have lost billions of dollars.

The cryptocurrency exchange announced on Saturday that it has started a strategic evaluation of its worldwide assets and is putting some firms up for sale or reorganization. According to a different court filing, a hearing on FTX’s so-called first-day motions is scheduled for Tuesday morning before a US bankruptcy judge.

One of the biggest and most influential actors in the cryptocurrency sector saw a spectacular decline with the swift collapse of FTX.

The FTX Group stated that it has spoken with “dozens” of US and international regulatory organizations, including the US Attorney’s Office, the US Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission, and that there may be more than 1 million creditors in the US cases that have already been filed.

According to a statement made by the Royal Bahamas Police Force on Sunday, authorities in the Bahamas, where FTX is headquartered, are looking into whether any illegal activity connected to the collapse of the company may have taken place. The bitcoin assets owned by FTX Digital Markets, an FTX unit domiciled in The Bahamas that filed for Chapter 15 bankruptcy protection on Tuesday, have also been taken over by the Bahamian government.

On Thursday evening, the Securities Commission of The Bahamas declared that it has authorized the transfer of all of FTX Digital Markets’ digital assets, which are now being sent to a digital wallet under its control for “safekeeping.”

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