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Collapsed crypto exchange FTX owes top 50 creditors $3 billion: Filing

The collapse of FTX sent shockwaves through the cryptocurrency industry. The price of bitcoin and other major digital coins fell sharply as problems at FTX emerged.

Jakub Porzycki | Nurphoto | Getty Images

Embattled cryptocurrency exchange FTX owes its creditors north of $3 billion, according to a new filing over the weekend.

A list of FTX’s top 50 unsecured creditors, which excludes their names and other identifying information, shows that the largest of them all are owed more than $226 million. The second largest unsecured creditor claims more than $203 million in unpaid debt from FTX.

In total, the unsecured claims — marked as not secured by collateral — amount to $3.1 billion. FTX may have more than 1 million creditors, according to an earlier bankruptcy filing.

FTX’s disgraced founder Sam Bankman-Fried stepped down as CEO earlier this month when the company filed for Chapter 11 bankruptcy protection.

FTX, once valued at $32 billion, collapsed in a matter of days after the CEO of rival firm Binance said his exchange would liquidate its FTT tokens. FTT, the native token of FTX, fell as a result, leading to a liquidity crisis at FTX.

The Securities and Exchange Commission and the Department of Justice are reportedly investigating what happened.

Bitcoin and other cryptocurrencies traded lower on Monday. More than $260 billion has been wiped off the value of the crypto market since Zhao’s tweet on Nov. 6.

Bankman-Fried has been accused by his peers in the crypto industry of flagrant mismanagement and fraud.

His exchange allegedly used client funds to make risky trades, according to earlier CNBC reporting.

In a damning account of FTX’s demise last week, its new CEO, John Ray III, said many of the FTX group companies “lacked appropriate corporate governance.”

FTX said Thursday it has credible evidence that the exchange moved assets into the custody of the Bahamian government.

The company’s new chief is now seeking to sell or restructure its global empire.

Neither FTX nor Bankman-Fried were available for comment when contacted by CNBC on Monday.

Crypto investors have been burned this year by a number of high-profile failures that have led to ripple effects. Earlier this year, the collapse of the so-called stablecoin terraUSD impacted a number of companies and contributed to the downfall of the major hedge fund Three Arrows Capital.

The latest market crash has raised questions about the opacity of big businesses in crypto, an industry often touted as more decentralized and transparent than traditional finance.

Jon Cunliffe, deputy governor of the Bank of England, said the FTX debacle has added greater impetus for regulators to act on crypto.

“We must not wait until it is large and connected to develop the regulatory frameworks needed to prevent a crypto shock that could have a much larger destabilizing impact,” Cunliffe said in a speech at Warwick Business on Monday School said.

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