New updates related to the court proceedings of cryptocurrency exchange FTX are in the headlines which say that it owes its 50 biggest creditors nearly $3.1 billion.
The exchange which has filed for U.S. bankruptcy court protection said in a court filing on Saturday that it owes about $1.45 billion to its top creditors, without revealing their names.
Nearly $3.1 billion is owed by the bankrupt FTX to its top 50 creditors
FTX and its affiliates filed for bankruptcy in Delaware on November 11; it’s one of the most publicised crypto blowups. This crypto blowup cost 1 million customers and investors billions of dollars.
On Saturday’s court proceedings FTX requested permission to pay prepetition claims of up to $9.3 million to its important investors after an interim order and around $17.5 million after the final order of the court.
The exchange said that if it fails to receive the requested court relief, it will result in the cryptocurrency exchange. Further said to convince the court it would lead to immediate and irreparable harm to its businesses if the court rejected this request.
On the same day the crypto exchange, FTX revealed that it has launched a strategic review of its global assets and preparing for the sale and reorganization of some businesses with an aim of raising about $9.4 billion from investors and rivals. New CEO John Ray said FTX will examine sales, recapitalization, and other strategic deals for some units.
FTX’s rapid collapse was a major setback for one of the Crypto industry’s leading companies. The cryptocurrency exchange company said that it has been in touch with many US and international regulatory agencies including the US Attorney’s Office, the US Securities, and Exchange Commission, and the Commodity Futures Trading Commission.
Meanwhile, Bahamas officials investigate FTX to ensure no criminal activity occurred during the company’s implosion. The Royal Bahamas Police force took control of FTX Digital Markets’ crypto assets after company filed for Chapter 15 bankruptcy.
The Securities Commission of The Bahamas transferred FTX Digital Markets’ digital assets last Thursday night. These digital assets are further transferred to the Bahamas regulator-controlled digital wallet for safekeeping.
John Ray said last week’s evaluations showed that many FTX subsidiaries in and outside the U.S. have sustainable balance sheets, reliable
In a separate court filing, it said that on November 16, it recognized 216 debtor bank accounts with positive balances but has only validated 144.
Perella Weinberg Partners LP is nominated as its lead investment bank and exchange company to help them with the sale process.
The chief executive of Crypto exchange FTX, Sam Bankamn- Fried has stepped down, and the new chief executive officer- John James Ray III has been appointed to carry the company. Forbes placed Bankamn Fried’s wealth at $17 billion two months ago. He will help with an orderly transition.
