"'Bankruptcy Filing' FTX Creditors May Exceed 1 Million... 10 Times More Than Known"

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Reports have emerged that the number of creditors of FTX, one of the world's top three cryptocurrency exchanges that filed for bankruptcy protection due to a liquidity crisis, could be ten times the previously known figure. The actual scale of damage is expected to be more severe than anticipated. FTX founder Sam Bankman-Fried is reportedly striving to secure new funding.

According to the Wall Street Journal (WSJ) and others on the 14th (local time), FTX's lawyers revealed in an updated document submitted to the court that "there could be more than one million creditors." This far exceeds the 100,000 creditors previously disclosed by FTX when it filed for Chapter 11 bankruptcy protection in Delaware on the 11th.

FTX's lawyers, who are in the process of filing for bankruptcy protection, are compiling a list of the top 20 creditors to submit to the court. Considering FTX's debt scale, they plan to submit a list of 50 creditors by the 18th. Accordingly, most creditors are unsecured subordinated creditors and may not receive any payment.

WSJ, citing sources, also reported that Bankman-Fried is attempting to raise new funds. Over the past weekend, Bankman-Fried contacted investors with some remaining staff to cover a shortfall of up to $8 billion (approximately 10.5 trillion KRW).

WSJ stated, "These efforts have not yet succeeded," but added, "Bankman-Fried still believes he can raise sufficient funds." It also noted that even if funds are raised, negotiations with creditors and approval from bankruptcy court officials are required. Known as the Warren Buffett of the crypto world, Bankman-Fried stepped down as FTX CEO after filing for bankruptcy protection. He also visited the Middle East weeks before the bankruptcy to secure funds.

Currently, five new independent directors, including a former Delaware state judge, have been appointed to FTX's major companies. Additionally, the U.S. Department of Justice, the Securities and Exchange Commission (SEC), and Bahamian authorities, where FTX's headquarters are located, have launched investigations into possible securities crimes and violations by FTX.

Meanwhile, Bloomberg quoted Anthony Scaramucci, CEO of U.S. hedge fund SkyBridge Capital, as saying that Binance's sale of FTT, which triggered FTX's collapse, may have been a retaliatory move by CEO Zhao Changpeng. SkyBridge Capital is affiliated with FTX. Earlier, Zhao announced the sale of $530 million worth of FTT tokens, which led to $5 billion leaving FTX in a single day, rapidly exacerbating the liquidity crisis.

This content was produced with the assistance of AI translation services.