A list of the top 50 creditors of FTX Group companies has been filed with bankruptcy court, and amounts totaling $3.1 billion.
The top two creditors are owed $226 million and £203 million. No names of creditors are included in the list, in line with a request by FTX to protect the identities of its customers for reasons of business competitiveness.
The 50th largest creditor is owed $21.3 million.
Today’s filing reveals the first concrete details regarding the size of the FTX companies’ liabilities, which is believed to amount to approximately $10 billion.
Crypto prices falter after latest FTX news
bitcoin and other crypto prices It has weakened since the news broke out, with the total crypto market cap down 1.93% to $821 billion.
Over the past 24 hours, bitcoin is trading down 1.2% at $16.497, Ethereum down 3% at $1,166 and Dogecoin down 6% at $0.079.
However, poor record-keeping by FTX means that new CEO John Ray cannot be completely sure that the top 50 list is accurate.
In addition, delays in preparing the inventory, which is a requirement of Chapter 11 bankruptcy proceedings, have been caused by the unfavorable condition of the records of the FTX companies.
The notice filed in the court stated; “…the Top 50 List is based on currently available creditor information of Debtors, including customer information that was viewable but is otherwise not accessible at this time. Debtors with respect to the amounts listed are under investigation, including such Includes payments that may have been made but not yet reflected in the books and records of the debtors. The debtors are also working to gain full access to customer data.”
Ray portrays Reign in FTX as a “Complete failure of corporate control” And the worst he had seen in his career, including cleaning up the mess after the infamous Enron collapse in 2007.
Top 10 FTX creditors owed $100 million
The consolidated list of creditors reflects the largest unsecured claims, although secured creditors may be included where collateral is now insufficient, thus placing the creditor on the list of unsecured claims.
The top 10 creditors alone are owed $100 million and are likely to include hedge funds and other financial companies that trade on the exchange, as well as crypto entities such as lenders.
FTX may have up to a million creditors and arguments over debt seniority will determine who gets paid first.
This has become an area of contention in other crypto bankruptcies, such as voyager digitaL, financial institutions holding accounts at crypto exchanges will have more senior debt than other unsecured creditors such as retail customers.
Crypto exchanges are set up in different ways to account for the division of labor that exists in traditional finance. Firms like FTX are part bank, part broker-dealer and part exchange. This means that they will act as custodians and hold large amounts of capital on behalf of customers.
The top 50 list can be found here:
https://cases.ra.kroll.com/FTX/Home-DownloadPDF?id1=MjMxNDUwMA==&id2=-1
Other court filings can be found here:
https://cases.ra.kroll.com/FTX/Home-DocketInfo
Ellison, Wang and Singh are all fired, CEO Ray is on $1,300 an hour
This has been revealed in other court documents. Caroline EllisonGary Wang and Nishad Singh have been sacked.
Also, at the time of the bankruptcy filing, the total FTX employee count, other than contractors, was 330 individuals located in 29 countries. Of the directly employed employees, 140 work in the US.
The documents say that “the Debtors continue to review personnel issues and anticipate based on the nature of the Debtors’ businesses that a significant number of employees will need to continue to work for the Debtors for the foreseeable future.”
CEO John Ray is being paid $1,300 an hour and a $200,000 retainer for his services.
The first day of the court’s sitting will be at 11 a.m. Tuesday, November 22, with Justice John T. Dorsey presiding.
Vitalik Buterin: “Anything centralized is suspect by default”
In other news, Ethereum co-founder Vitalik Buterin described the FTX explosion as a “huge tragedy”.
But he added, “That said, many in the Ethereum community also see the situation as a confirmation of what they have always believed: anything centralized is suspect by default.”
For Buterin the case is a testament to the correctness of his belief in “open transparent code over individual human beings”. He added that the DeFi protocol had worked “flawlessly”.
On Sam Bankman-Fried, Buterin tweeted:
According to one trader, the relative strength of bitcoin also bodes well for future recoveries:
Elsewhere centralized exchanges continue to try to communicate their credibility. To that end, Coinbase was placing advertisements in the Wall Street Journal.
Crypto Winter Will Be Long But There Are Bright Spots
IFTX has definitely set back the crypt and is likely to prolong the winter. Nevertheless, even at this juncture there are profitable opportunities for savvy traders and investors.
So if you are looking to add some alpha to your portfolio, a good place to start is the pre-sale segment, and we have two interesting offers for your watchlist – dash 2 business (D2T) and robot era (Torah).
Dash 2 Trade is the perfect antidote to the post-FTX world – its trading intelligence tools, signals and metrics will help traders and investors spot and clarify problems.
vote of confidence in the project, lbank and, more recently, bitmart Both have signed deals to list the token after the presale ends. You can buy D2T in the pre-sale now for $0.0513.
have another project robot eraWhich could be the next hot metaverse gaming project.
The gaming platform is similar to sandbox but better – you build planets using robots. Its TARO token is currently available for sale for $0.020. It’s already raised $100,000 in just a few days of its presale.
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