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As per the recent filing submitted by FTX in its bankruptcy proceedings, the crypto exchange owes a massive $1.45 billion only to its top ten creditors.
Ever since crypto exchange FTX filed for bankruptcy, administrators are studying the wreckage caused by the crypto firm. On Saturday, November 19, the filings from the Chapter 11 bankruptcy protection proceedings showed that crypto exchange FTX owes more than $3 billion to its top 50 creditors. The names of the creditors remain unidentified for the time being. However, the biggest sum that FTX owes to a single creditor is $225 million.
The hole in FTX’s books is greater than anticipated. The bankrupt crypto exchange FTX said that it owes over $1.45 billion to its top ten creditors. In total it has added up to $1.45 billion.
The filing from last Saturday showed that the Chapter 11 or Chapter 9 proceeding should involve the list of creditors with the 50 largest unsecured claims. However, all the amounts listed currently shall be subject to further investigation. The filing also added:
“The Top 50 List is based on the Debtors’ currently available creditor information, including customer information that was able to be viewed but is not otherwise accessible at this time. The Debtors’ investigation continues regarding amounts listed, including payments that may have been made but are not yet reflected on the Debtors’ books and records.”
With more than 1 million users, the FTX collapse is certainly one of the high-profile blowups in the crypto space. On Saturday, the bankrupt crypto exchange said that they have launched a strategic review of global assets and is also working on the sale/reorganization of some of its businesses.
FTX Contagion Spreads Across the Market
The contagion of the FTX collapse is spreading wild and fast across the entire crypto space. As per recent reports, crypto lender BlockFi is on the verge of announcing bankruptcy. The fall of FTX has put BlockFi into major trouble and a greater hole in its balance sheet.
On the other hand, market analysts are demanding to strengthen of the regulatory rules for the crypto space. Speaking to Bloomberg TV, Christian Catalini, founder of the MIT Cryptoeconomics Lab, said:
“The FTX issues are really an urgent reminder of the need for regulatory clarity and a real regulatory framework for crypto”. The hype and speculation over the minting and trading of tokens “has generated a massive distraction from building actual products and services that reach consumers, solve actual problems.”
Amid the FTX collapse, other popular crypto exchanges are also facing the heat. Popular crypto trading platforms like Crypto.com and Binance are having a tough time reassuring the market about their stability.
Another report also suggests that FTX Europe was recently seeking a trading license in Switzerland. It has applied to the Swiss banking regulator FINMA for a so-called “organized trading system”. However, the application has been declined for now.