FTX owes $3.1 billion to 50 top creditors 💸FTX owes $3.1 billion to its 50 biggest creditors. Their identities were redacted in documents filed on Saturday — and the largest creditor is $226 million
FTX owes $3.1 billion to 50 top creditors 💸
FTX owes $3.1 billion to its 50 biggest creditors. Their identities were redacted in documents filed on Saturday — and the largest creditor is $226 million out of pocket. Genesis has confirmed it's caught up in the crypto contagion, with $174 million in funds locked within its FTX trading account. This aligns with a court document that shows the third-biggest creditor is owed $174,273,628. There are a couple of reasons why the exact identities of creditors isn't publicly known. A motion has been filed to keep this information confidential so rival crypto firms cannot take advantage. But a bigger problem is this: FTX's old management has been accused of failing to keep "appropriate books and records" — meaning it isn't clear who is owed what.
Question marks over missing $300m 🧐
With each passing day, new bombshells about what was going on inside FTX are coming to light. The Wall Street Journal is reporting that $420.69 million was raised from big-name investors in October 2021 — but $300 million went to Sam Bankman-Fried. As the newspaper notes, such cashouts are frowned upon "because they allow founders to reap profits before investors." At the time, SBF described this as a repayment because he had spent $2.1 billion buying out Binance's 15% stake in FTX. John Ray, who is now picking up the pieces at FTX, has criticized how the exchange was managed — with "the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals."