FTX Owes More Than $3 Billion to Its Top Creditors, Reveals Court Filing

Embattled cryptocurrency exchange FTX owes more than $3 billion (roughly Rs. 18,346 crore) to its top 50 creditors. A filing from its Chapter 11 bankruptcy protection proceedings on Saturday revealed the amount owed to unidentified creditors, with the biggest being slightly more than $226 million (roughly Rs. 2,240 crore). According to the filing, its top 10 creditors come in at just under $1.45 billion (roughly Rs. 11,771 crore). In total, it added up to almost $3.1 billion (roughly Rs. 25,166 crore).

Even though the filing did not disclose the names of the parties wrapped up in the swift demise of FTX, the document makes clear the scope of the potential losses its clients face.

FTX's top ten creditors alone have more than $100 million (roughly Rs. 812 crore) each in unsecured claims, according to the filing, equal to more than $1.45 billion (roughly Rs. 11,771 crore) combined. The filing explained that the debt does not involve anything owed to company insiders and is subject to change as more information becomes available.

The company also stated in the motion that its debt figures may not be entirely accurate because there could be payments that have already been made out to creditors, but aren't reflected on the company's books or records.

In the US, bankrupt companies are required to disclose information about their debts as part of insolvency proceedings. Creditors will get to weigh in for FTX to repay its debts as the bankruptcy unfolds.

FTX said it has assets and liabilities of at least $10 billion (roughly Rs. 81,181 crore) each in preliminary court papers. The case may involve more than one million creditors, according to lawyers for FTX.

FTX was once the world's third-largest exchange with a valuation of nearly $32 billion (roughly Rs. 2,59,780 crore) before a liquidity crisis toppled the company earlier this month. Bankman-Fried announced on November 11 before stepping down that FTX, his trading firm Alameda Research, and affiliated companies would file for bankrupty.

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