FTX’s largest creditors have claims ranging from hundreds of millions to tens of millions of dollars, per a recently filed court document.
It suggests FTX has an estimated one million creditors. The largest single claim is for $226 million and the second largest is for $203 million. However, the identities of these creditors are not mentioned but the claims of top 50 creditors amount to approximately $3.1 billion, media reports said.
“The Top 50 List is based on the Debtors’ currently available creditor information, including customer information that was able to be viewed but is not otherwise accessible at this time,” the document, prepared by bankruptcy lawyers explained.
“The Debtors’ investigation continues regarding the amounts listed, including payments made but not yet reflected on the Debtors’ books and records. The Debtors are working to obtain full access to customer data.”
FTX has hired Sullivan & Cromwell and Landis Rath & Cobb as bankruptcy lawyers.
There is no clarity yet on how much creditors will be able to recover at the end of bankruptcy proceedings. Experts believe it could be just a fraction of what they have put in.
The words of FTX’s new CEO John Ray assume importance as he castigated the financial management at the failed crypto exchange. Ray had called it a colossal “failure of corporate controls” and rued the “complete absence of trustworthy financial information.”
On the other hand, the disgraced FTX founder Bankman-Fried told a media outlet that regrets filing for bankruptcy as it swept away his financial control.
