Cryptocurrency exchange FTX owes creditors over $3 billion

FTX, the cryptocurrency exchange that collapsed earlier this month and filed for bankruptcy, said in a court filing on Saturday that it owed its 50 largest creditors more than 3 billions of dollars.

The collapsed stock exchange’s ten major creditors owe about $1.45 billion. The identity of the creditors is redacted.

John Ray III, who was named CEO of FTX after founder Sam Bankman-Fried resigned, also said on Saturday that the company had launched a strategic review of the exchange’s assets.

FILE PHOTO: The FTX logo is seen at the entrance to the FTX Arena in Miami November 29. 12, 2022. (REUTERS/Marco Bello/File Photo/Reuters Photos)

FTX was once the world’s third-largest exchange with a valuation of nearly $32 billion before a liquidity crunch hit the company earlier this month. Bankman-Fried announced Nov. 2. 11 before resigning that FTX, its trading company Alameda Research and affiliates would file for bankruptcy.

NEW FTX BOSS SENTENCES BANKMAN-FRIED FOR ‘COMPLETE FAILURE OF CORPORATE CONTROLS’

It is estimated that one million customers and other investors are facing multi-billion dollar losses.

Sam Bankman-Fried sits in a chair

Sam Bankman-Fried, co-founder and former CEO of FTX, in Hong Kong, China on Tuesday, May 11, 2021. (Lam Yik/Bloomberg via Getty Images/Fox News)

Ray, an attorney who oversaw the $23 billion bankruptcy of energy company Enron, wrote in a separate court filing this week that he “didn’t trust” FTX’s balance sheets.

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“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as has happened here,” Ray said in a Nov. 11 filing. 17.

“From the compromised integrity of systems and faulty regulatory oversight overseas, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented. “

Megan Henney of Fox Business contributed to this report, as well as Reuters.

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