FTX May Have Over 1 Million Creditors

According to a court document that finally started to describe the company’s bankruptcy, FTX may have more than 1 million creditors.

The document, which was submitted to the PACER federal court database system late on Monday, offered the first accurate picture of the cryptocurrency exchange’s final day before declaring bankruptcy and its initial days throughout the process.

The petition stated that the new CEO, seasoned insolvency overseer John J. Ray III, is collaborating with legal, cybersecurity, and forensic consultants on the numerous subsidiaries of the corporation and their individual bankruptcy procedures.

Alameda Research‘s sibling trading company, the failing crypto exchange organization, filed more than 100 dockets as a part of the litigation.

In connection with these dockets, FTX filed motions to treat each entity as a separate matter rather than administering the whole umbrella group of organizations collectively.

FTX is also requesting permission to compile a top 50 list of creditors for the entire structure rather than a list of the top 20 creditors for each individual firm. Additionally, the company estimates that it may have over a million debtors in total.

The owners of FTX are also asking for the option of serving bankruptcy letters to creditors through email rather than in person because their clients’ email addresses are already in the system.

The exchange claims it has spoken with the U.S. Attorney’s Office, the Securities and Exchange Commission, and the Commodity Futures Trading Commission, among others, about last week’s hundreds of millions of dollars in the unexpected crypto outflow. Some have theorized that the outflows were caused by a cyberattack or an inside operation, but the cause is still unknown.

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Harold

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