It’s been less than two weeks since Sam Bankman-Fried’s cryptocurrency exchange filed for bankruptcy. According to FTX’s lawyers with whom the news agency Bloomberg has been in contact, there may be as much as one million creditors in the company.
According to information, the liquid assets, i.e. the actual money, remaining in FTX should amount to around 1 billion dollars, while the mountain of debt is around 9 billion dollars.
“The worst I’ve seen”
The company’s newly appointed head John Ray described last week to CNBC that FTX’s accounting and control functions were “the worst he has seen in his long career in bankruptcy administration”. Ray replaced FTX founder Sam Bankman-Fried in connection with the company filing for bankruptcy protection on November 11.
The crisis in FTX is largely due to the company taking large loans from the group’s own trading company Alameda Research, among other things in the form of customer assets. Alameda, in turn, will build a large part of its balance sheet on the group’s own crypto asset FTT.
The FTX collapse has hit other cryptocurrencies, including Bitcion which is trading around $16,000 per unit – the lowest level in over two years.
“Tragicomic crypto crash gives critics grist to their mill”: