Bankrupt crypto derivative exchange FTX has said it owes money to more than one million creditors, marking a change from the previous position, according to a latest court filing on Monday.
Sam Bankman-Fried (SBF), the co-founder and CEO, quit the top job after the liquidity crisis tanked the crypto exchange amidst allegations of siphoning off clients’ funds to trading platform Alameda Research, owned by SBF.
The Chapter 11 bankruptcy protection filed by FTX last Friday projected assets and liabilities between $10 billion and $50 billion and more than 100,000 creditors.
In the new disclosure, it says Friday’s Chapter 11 filing was declared in haste, and added “FTX faced a severe liquidity crisis that necessitated the filing of these cases on an emergency basis.”
The revelation that FTX has more than a million creditors has complicated the insolvency mystery. The important filing was part of the 100-plus dockets filed by the FTX group including sister trading firm Alameda Research.
FTX’s operators also sought permission to serve bankruptcy notices to creditors via email, as opposed to physical mails, because customers’ email addresses are on its record.
Meanwhile, Citadel’s billionaire founder and CEO Ken Griffin strongly criticized American regulators and pulled up them for inadequate supervision of the crypto industry as evidenced by the FTX’s collapse.
Ken Griffin called for an end to the turf war by American regulators and termed it “just preposterous.” He was speaking at the Bloomberg New Economy Forum in Singapore.
“The agencies dance around who owns what. American investors have been hurt to the tune of hundreds of billions of dollars in the declining market cap of crypto over the last two years. That strikes at the entire essence of what investor protection is all about,” Ken rued.
