Estimated reading time 1 minute 1 Min

Bankrupt exchange FTX owes creditors $US3b

Bankrupt cryptocurrency exchange FTX has stated in a court filing it owes more than $A4.5 billion to its largest creditors.

November 22, 2022
By AAP
22 November 2022

The failed cryptocurrency exchange FTX owes more than $US3 billion ($A4.5 billion) to its largest creditors, the company has disclosed in a court filing.

The list of the top 50 unsecured claims against FTX gives the public a first glance into the amount of money Sam Bankman-Fried’s companies may owe his customers. 

The top claim was more than $US226 million.

The names, addresses and other information about the claims was redacted by the court.

Bahamas-based FTX filed for bankruptcy on November 11 after the exchange acknowledged that it had used customer funds to cover bad bets by Bankman-Fried’s trading arm, Alameda Research. 

Since it went into bankruptcy, the lawyers tasked with sorting through the aftermath have described in court filings a company that had little risk controls and would use company funds to pay for personal purchases of its employees.

“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,” John Ray III, the new CEO of FTX, said in a court filing.

FTX’s lawyers will appear in bankruptcy court on Tuesday for the first hearings.

More in Top Stories