'Bankruptcy Filing' FTX, Top 50 Creditors' Debt Totals 4.1 Trillion Won

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Cryptocurrency exchange FTX, which filed for bankruptcy protection due to a liquidity crisis, is reported to owe more than $3.1 billion (approximately 4.16 trillion KRW) to its top 50 creditors. The debt owed to the largest creditor alone amounted to $226 million.

On the 20th (local time), Bloomberg cited the list of creditors submitted by FTX to the Delaware bankruptcy court the previous night, reporting this information. Among unsecured creditors, the debt owed to the top 50 creditors is $3.1 billion. The debt owed to the largest creditor is $226 million, and the debt owed to the top 10 creditors is confirmed to be $1.45 billion. All of these creditors are individual or institutional customers affected by the FTX incident, but their names and locations have not been disclosed.

Earlier, on the 11th, FTX filed for bankruptcy protection under Chapter 11 of the U.S. Delaware court, presenting the number of creditors as about 100,000. However, just a few days later, FTX’s lawyers handling the bankruptcy protection process informed the court that the actual number of creditors is expected to exceed one million. Companies filing for bankruptcy protection in the U.S. are required to disclose debt-related information as part of the procedure.

Currently, FTX is preparing for the sale and restructuring of some businesses after a global asset evaluation. John J. Ray III, a restructuring expert who took over as FTX’s new CEO, indicated this policy in a statement yesterday, saying, "After reviewing over the past week, we are relieved to find that several subsidiaries inside and outside the U.S. have solvency on their balance sheets and possess valuable franchises."

However, warnings about the aftershocks of the FTX collapse continue. Previously, cryptocurrency venture firm Multicoin Capital sent a letter to investors yesterday, warning that "the FTX incident could lead to further collapses" and that "many trading companies could be swept away or shut down due to this incident." Concerns were also raised that the bearish trend in the cryptocurrency market is unlikely to change in the near term.

On the same day, The Wall Street Journal (WSJ), citing the non-profit organization Center for Responsive Politics (CRP), reported that FTX founder and former CEO Sam Bankman-Fried and other executives donated more than $72.1 million (approximately 96.8 billion KRW) in political contributions to Washington politics over the past 18 months. Former CEO Bankman-Fried was identified as the second-largest donor to the Democratic Party, following George Soros.

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