Bankrupt Crypto Exchange FTX Owes Top 50 Creditors Over $3 Billion
Bankrupt crypto exchange FTX, along with its linked businesses, owes its 50 biggest unsecured creditors a total of $3.1 billion, according to court documents.
- FTX and its linked entities owe its 50 biggest creditors over $3 billion.
- The case may involve more than one million creditors, according to FTX’s lawyer.
- President Biden is calling for stricter global crypto regulation.
The case may involve more than 1 million creditors. Redacted court filings show that all top 50 creditors are customers, and 10 have claims of more than $100 million each. FTX has assets and liabilities of at least $10 billion each, according to preliminary court papers.
FTX Exploiter Converts $7.4 Million in Ether
Meanwhile, the mystery surrounding the disappearance of more than $600 million from FTX’s crypto wallets deepened as $7.4 million of BNB tokens were converted into Ether (ETH) and Binance USD (BUSD), a U.S. dollar-pegged stablecoin last Thursday.
No one has claimed responsibility for the FTX attack and it’s unclear why the attacker would be converting the stolen funds to Ether and Binance USD in transactions that appear to happen at about the same time every day. More than 34,000 Ether were moved to multiple addresses connected to the attacker on Tuesday. At present, the address holds more than 290,000 Ether, making it the 34th-largest owner of the cryptocurrency.
The Bottom Line
The FTX collapse has had a massive impact on the crypto market, and it’s not over yet. It has prompted President Biden’s administration to call for stronger cryptocurrency regulations. Last week, White House Press Secretary Karine Jean-Pierre said, “Without proper oversight, crypto risks harming everyday Americans, so this is something that we see as an important issue, but the most recent issues further underscore and prove why prudent oversight of cryptocurrencies is indeed needed.”