By Darren Parkin
The 50 largest creditors caught up in the collapse of cryptocurrency exchange FTX will be announced before the end of the week, administrators have revealed.
The directors charged with picking up the pieces of the financial disaster have, according to filings, also said it is likely there are more than a million creditors affected.
The ominous entry in the latest filing document states: “Bankruptcy Code section 521(a) and Bankruptcy Rule 1007(d) require a debtor to file a list containing the name, address, and claim of the creditors holding the 20 largest unsecured claims against the debtor.
“As set forth in the Debtors’ petitions, there are over one hundred thousaund creditors in these Chapter 11 Cases. In fact, there could be more than one million creditors in these Chapter 11 Cases.
“As such, the Debtors submit that cause exists to modify that requirement such that the Debtors will file a consolidated list of their top 50 creditors (the “Top 50 List”) in lieu of a top 20 list for each Debtor on or before November 18, 2022.”
The three-year-old exchange, founded by Sam Bankman-Fried, disintegrated in matter of days.
Trouble began when Binance chief Changpeng ‘CZ’ Zhao engaged in a Twitter spat with the FTX CEO over regulation.
Zhao soon ordered the liquidation of almost $600 million of FTX tokens before sensationally agreeing to buy FTX, subject to due diligence processes. By this point, rumours of insolvency surrounding SBF’s trading company Alameda Research were rife.
Within 24 hours the offer was off the table after CZ suddenly pulled out of the deal to buy up the beleaguered exchange.
The fallout from what has now become an epic financial scandal has hit many businesses and affected millions of people. Some 134 entities were listed in a file for bankruptcy submitted by FTX last week – a file made as Sam Bankman-Fried resigned his position as CEO. The 30-year-old Californian resigned barely a day after issuing a gushing and rambling apology as he pledged to fix the unfolding carnage.
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