Cryptocurrency exchange FTX owes more than $3 billion to creditors
Federal defense attorney Ronald Chapman discusses the class action lawsuit against FTX and Elizabeth Holmes’ sentencing.
FTX, the cryptocurrency exchange that collapsed earlier this month and filed for bankruptcy protection, said in a court filing on Saturday that it owes its 50 largest creditors more than $3 billion.
The collapsed stock exchange’s top ten creditors are owed around $1.45 billion. The creditor’s identity is redacted.
John Ray III, who was named CEO of FTX after founder Sam Bankman-Fried stepped down, also said Saturday that the company has launched a strategic review of the exchange̵[ads1]7;s assets.
FILE PHOTO: The logo of FTX is seen at the entrance to the FTX Arena in Miami, November 12, 2022. (REUTERS/Marco Bello/File Photo/Reuters Photos)
FTX was once the world’s third largest exchange with a value of nearly $32 billion before a liquidity crisis brought down the company earlier this month. Bankman-Fried announced on November 11 before resigning that FTX, his trading firm Alameda Research and affiliates would file for bankruptcy.
NEW FTX CHIEF CONDEMNS BANKMAN-FRIED FOR ‘COMPLETE FAILURE IN COMPANY CONTROLS’
An estimated one million customers and other investors face losses in the billions of dollars.
Sam Bankman-Fried, co-founder and former CEO of FTX, in Hong Kong, China, Tuesday, May 11, 2021. (Lam Yik/Bloomberg via Getty Images/Fox News)
Ray, a lawyer who oversaw the $23 billion bankruptcy of energy company Enron, wrote in a separate lawsuit this week that he had “no confidence” in FTX’s balance sheets.
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“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of reliable financial information as occurred here,” Ray said in a Nov. 17 filing.
“From compromised system integrity and faulty regulatory oversight overseas, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.”
Fox Business’s Megan Henney contributed to this report, as well as Reuters.
