FTX Could Be Paying 1 Million Creditors
(RepublicanNews.org) – Cryptocurrency exchange platform FTX officially filed for bankruptcy. CEO Sam Bankman-Fried resigned shortly afterward, sparking speculation about whether the company had been in serious trouble for some time. It now appears that FTX might owe money to over a million people.
Bankrupt cryptocurrency exchange FTX, founded by disgraced crypto CEO and Democrat super donor Sam Bankman-Fried, could owe money to more than one million people and organizations, according to documents filed in bankruptcy court this week. https://t.co/08RfgoIehq
— Breitbart News (@BreitbartNews) November 16, 2022
According to The New York Times, FTX filed documents in a Delaware federal bankruptcy court on November 11. It was the first filing for the crypto trading platform for its case.
FTX’s legal team reportedly did not clarify the company’s status within the document. However, representatives stated that it was actively communicating with law enforcement agencies and regulators at the state, federal, and international levels. The Securities and Exchange Commission (SEC is apparently involved in the matter as well, although its exact role remains unclear.
FTX’s downfall came after a massive influx of withdrawal requests left the company with a shortfall of $8 billion. Bankman-Fried attempted to amass the necessary funds from other sources after a deal with Binance fell through. However, the company’s founder did not manage to deliver, leaving FTX with no choice but to declare bankruptcy.
Notably, FTX’s collapse also triggered a chain reaction of problems elsewhere. One of Bankman-Fried’s companies, Alameda Research, kicked the bucket.
The platform’s sudden collapse into insolvency has shaken the cryptocurrency industry to its core. Prices for industry powerhouse currencies, such as Ether and Bitcoin, plunged in response to the chaos, costing investors millions. BlockFi, which was tightly intertwined with Bankman-Fried’s FTX, also announced it would suspend operations due to the bankruptcy.
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