Friday, December 2, 2022

FTX owes more than $3 billion to its top 50 creditors

Cryptocurrency platform FTX, which filed for bankruptcy this month after a rapid crash, owes more than $3 billion to its top 50 creditors, it admitted in a court document filed this weekend.

The list does not make public any identity, but it does disclose the money owed, which reaches 226 million dollars in the case of the leading creditor and includes a dozen who are owed more than 100 million.

In another previous writing, FTX estimates that it may have a total of more than a million creditors after its sudden collapse.

According to experts, the users of the affected platform will most likely never recover their funds, since – unlike what happens in traditional banking – the deposits were not guaranteed and it is not clear how much money could be left to compensate them. when the company is liquidated.

FTX had become one of the most important cryptocurrency platforms in the world in recent years and had come to be valued at around 32 billion dollars.

However, this month it fell apart in just a few days after doubts about its solvency were raised by various reports, which led many users to rush to withdraw their money, leaving it without liquidity and in search of bailout.

That capital injection never came and FTX ended up declaring bankruptcy last Friday, assuring that this was the best formula to protect its clients and seek that they can recover their money.

Since then it has been known that FTX would have used billions of dollars from its clients to finance risky bets through its investment firm Alameda Research, a practice that was initially illegal if it did not have the approval of the users.

For this reason, both the Bahamian and the United States authorities are investigating possible crimes committed by the firm founded by Sam Bankman-Fried, a 30-year-old businessman who had become one of the best-known figures in the field of cryptocurrencies. .

Likewise, a group of investors in the United States filed a class action lawsuit in Miami (Florida) against FTX, its manager, Sam Bankman-Fried, and several celebrities who promoted the platform, including athletes Tom Brady and Stephen Curry.

The whistleblowers accuse the platform of recruiting “unsophisticated investors across the country” and causing them economic damages amounting to $11 billion.

Last week, the executive named to lead the bankruptcy process, veteran John Ray III, charged that the company had a “total absence” of corporate controls and reliable financial information.

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