Collapsed crypto exchange FTX has revealed it owes its 50 biggest creditors nearly $3.1bn, as it presses ahead with bankruptcy.
The crypto exchange, FTX, which was formerly led by disgraced founder Sam Bankman-Fried, said in court documents released yesterday and obtained by Reuters that it owed over $1.45 billion to only its top 10 debtors.
Two weeks ago, FTX filed for Chapter 11 bankruptcy, leaving millions of consumers and investors facing billions of dollars in losses. Energy colossus Enron’s winding up has been parachuted under the supervision of John Ray III, who previously oversaw the bankruptcy proceedings. Ray III called Enron’s bankruptcy the worst example of corporate mismanagement he had ever seen.
“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,”
he wrote in a filing with the Delaware bankruptcy court last week. Under Ray, the company has started a strategic examination of its vast global holdings and is getting ready to sell certain operations or reorganize others in an effort to “begin to maximize recoverable value for stakeholders”.
Some of the companies Ray mentioned as being part of FTX “had solvent balance sheets, responsible management, and important franchises”. The firm’s collapse has shaken the cryptocurrency market and raised concerns about a possible outbreak of disease.
One of the biggest companies affected by the consequences is the cryptocurrency lender Genesis, which last week stopped allowing withdrawals from its website. The Wall Street Journal said that Genesis executives are apparently working overtime to secure a $1 billion loan from investors.
