Fallen Crypto Exchange FTX Owes Over $3.1bn to its Largest Creditors

FTX filed for bankruptcy last week and revealed that it owes money to more than a million people and companies.

Bankrupt crypto exchange ‘FTX,’ once considered the third largest crypto exchange in the world, has just announced that it currently owes more than $3.1 billion (PKR 698,446,120,000) to its 50 largest creditors.

A recent court filing revealed the numbers after FTX filed for bankruptcy. It was also revealed that of the $3.1 billion installments, the company owes around $1.45 billion to its top 10 creditors. As of now, the firm has refused to name any creditors.

FTX’s massive collapse was a disaster not only for CEO Sam Bankman Fried, who lost 94% of his assets in one day but also for his creditors and other cryptocurrency-based businesses and exchanges.

Reports suggest that shortly after FTX collapsed, investors began to lose faith in other trusted crypto exchanges. Cryptocurrency and blockchain-based companies also saw a decline in users, prompting many industry veterans to criticize FTX.

FTX’s bankruptcy filing revealed that more than a million people and companies currently owe money to the exchange. Following the events, FTX will begin reviewing its global assets and reorganizing or selling some of its business ventures.

While the fallen organization expects to pay off most of its creditors, expectations are quite low. Crypto experts have revealed that creditors will receive only a fraction of the money they invest in the company.

The former CEO of FTX has resigned, and the new CEO, John Ray, has disclosed information about FTX’s operations. “A complete lack of reliable financial information,” Wray said, criticizing former chief executive Sam Bankman’s operations.

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