Crypto Exchange FTX Owes Top 50 Creditors Over $3B

Key Takeaways:

  • FTX owes over $3 billion to 50 unsecured creditors.
  • The company filed for Chapter 11 bankruptcy earlier in November.
  • Meanwhile FTX contagion spreads, threatening more players in the field.
FTX owes top 50 creditors over $3 billion, as contagion spreads
Crypto Exchange FTX owes top 50 creditors over $3 billion, as contagion spreads

YEREVAN ( – The infamous collapse of crypto exchange FTX left the company owing over $3 billion to 50 unsecured creditors.

How much does FTX owe?

The publically available list of such entities excludes their names but notes that the largest is short of more than $226 million. The second entity in line claims $203 million. Earlier this month, FTX founder and former CEO Sam Bankman-Fried (SBF) filed for Chapter 11 bankruptcy,

Experts agree that a Chapter 11 filing is safer for investors than a Chapter 7 bankruptcy. The main difference between the two is that under a Chapter 7 bankruptcy filing, the debtor sells off their assets to pay the lenders (creditors). Conversely, in a Chapter 11 filing, the debtor negotiates with creditors to alter the loan terms without liquidating assets.

Also read: When CME Group CEO Called SBF a “Fraud” and a “Clown.”

Bankruptcy filing is for “maximizing the recovery”

As CoinChapter reported earlier, In the 23-page bankruptcy filing, FTX disclosed that it has more than 100,000 creditors, assets in the range of $10 billion to $50 billion, and liabilities in the range of $10 billion to $50 billion.

Newly appointed FTX chief executive John J. Ray III addressed the bankruptcy filing in a statement. He asserted that bankruptcy protection would allow FTX to assess its situation and develop a process to maximize recoveries for stakeholders.

FTX Group has valuable assets that can only be effectively administered in an organized process. I want to ensure every employee, customer, creditor, investor, […] governmental authority and other stakeholder that we are going to conduct this effort with diligence, thoroughness and transparency.”

said Ray.

FTX Contagion spreads

Meanwhile, as the market prepares for more storms, the FTX contagion spreads.

As CoinChapter reported on Nov 17, crypto lender Genesis sought a $1 billion emergency loan by Nov 21. Additionally, the lender halted customer withdrawals on its platform. The document cites a “liquidity crunch due to certain illiquid assets on its balance sheet.”

On Nov 14, crypto asset manager Ikigai revealed that most of its funds are held with FTX. The firm’s CIO, Travis Kling, went to withdraw funds from the hedge fund’s account on FTX. However, he allegedly found that most of the assets had been depleted.

The list of FTX creditors also includes CoinShares, Galaxy Digital, Wintermute,, Matrixport, and hedge fund Galois Capital. The funds these companies plan to claim through bankruptcy proceedings are not public knowledge. However, the amounts range from $4 million to $175 million.

On Nov 14, crypto lender BlockFi publicly stated that the rumors claiming that most of BlockFi’s assets are in the custody of FTX were false. However, the company does have “significant exposure to FTX and associated corporate entities.”

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FTX, Crypto Exchange FTX Owes Top 50 Creditors Over $3B

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