FTX Trading-CEO
File - The FTX logo appears on home plate umpire Jansen Visconti's jacket at a baseball game with the Minnesota Twins on Tuesday, Sept. 27, 2022, in Minneapolis. The new CEO of the collapse cryptocurrency trading firm FTX, who oversaw Enron’s bankruptcy, said, Thursday, Nov. 17, he has never seen such a “complete failure” of corporate control. John Ray III, in a filing with the U.S. bankruptcy court for the district of Delaware, said there was a “complete absence of trustworthy financial information.” (AP Photo/Bruce Kluckhohn, File)
tech

Bankrupt exchange FTX owes top creditors over $3 billion

8 Comments
By KEN SWEET

The failed cryptocurrency exchange FTX owes more than $3 billion to its largest creditors, the company disclosed in a court filing over the weekend.

The list of the top 50 unsecured claims against FTX gives the public a first glance into the amount of money Sam Bankman-Fried's companies may owe his customers. The top claim was more than $226 million.

The names, addresses and other information about the claims was redacted by the court.

Bahamas-based FTX filed for bankruptcy on Nov. 11 after the exchange acknowledged that it had used customer funds to cover bad bets by Bankman-Fried's trading arm, Alameda Research. Since it went into bankruptcy, the lawyers tasked with sorting through the aftermath have described in court filings a company that little risk controls and would use company funds to pay for personal purchases of its employees.

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” said John Ray III, the new CEO of FTX, in a court filing.

FTX's lawyers will appear in bankruptcy court on Tuesday for the first hearings.

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©2022 GPlusMedia Inc.

8 Comments
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FTX is turning out to be the biggest con of all time. Binance is owned by the CCP... so be wary of them too.

6 ( +7 / -1 )

Early in the Russo-Ukraine War Ukraine set up a website to accept donations from individuals to help fight the Russians. Donations in cryptocurrencies were accepted, but the Ukraine treasury had to convert these to Euros or Dollars in which to buy war materials. FTX was hired to perform the conversions. Ukraine didn't invest in FTX. US tax dollars went mostly to US defense contractors to produce arms for Ukraine, or to EU members to buy or repair their Russian made armaments for transfer to Ukraine. It was not invested in FTX.

0 ( +2 / -2 )

Take the money back from the Democrat politicians he gave it to. Stolen money can’t be donated.

It depends on whether the money was his personal money or the corporation's.

0 ( +2 / -2 )

Never gamble/invest money that you cannot afford to lose.

Given that this is crypto, I wonder if some of those creditors are the sort of folk that it is a really bad idea to lift cash from. Those behind the company may have more pressing concerns than legal action.

1 ( +3 / -2 )

Given that this is crypto, I wonder if some of those creditors are the sort of folk that it is a really bad idea to lift cash from. Those behind the company may have more pressing concerns than legal action.

Get rich schemes are as old as man. As the saying goes, there's a sucker born every minute and two born to take his, or her, money. If people were smarter these con men couldn't get away with the crimes they engage in.

1 ( +2 / -1 )

DO NOT GET INTO CRYPTO-SCAMS !!..

you could also say DO NOT GET INTO BANK-SCAMS !!..

because the Lehman Bank shock was exactly the same - senior members of the big banks committing fraud, & then covered it up.

the difference is, the banks were saved thanks to huge handouts from the government

-1 ( +3 / -4 )

Lehman Bank shock was exactly the same

FDIC protects something. But nothing protects Crypto and it needs to crash and burn (further). Nothing good comes from it. I wish it was 2010 and I would mint some crypto on my PC then sell for millions in real currency, pay the amount of tax, sell it to another sucker, then retire (in non-fake currency). You can no longer do that.

-1 ( +1 / -2 )

It's looking like Coinbase is heading to zero too. Binance is certain to follow.

0 ( +0 / -0 )

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