FTX court filings reveal $3.1 billion owed to top 50 creditors

avatar of @adedayoolumide
2 min read

FTX collapse has consider to be one of the mismanagement firms in cryptosphere, a firm to failed woefully in managing client funds and the company proof of reserve. However after a lot of investigation and court filing on Saturday the truth been open that FTX owed top 50 largest creditor $3.1 billion, and this has caused many reaction from people about who are the creditors, and if they'll have their funds back. Many of these largest creditors to the exchange were hedge funds that held a large portion of their funds on the exchange

According to the court filing on Saturday, the top 10 largest creditors out of the 50 creditors owed approximately $1.45 billion, and others weren’t large hedge funds but retail investors, aside that the firm have collectively lost many billions.. Although the court filing did not disclose who the creditors were, but it clear to know some of them that are public on the exchange like Ikigai who also held large portion on the exchange.

To me FTX is such a bad exchange that is unsecured and as the largest centralized exchange to ever complete failed for mismanagement and allowing Investors funds to go out through the windows without checks and balances. Putting Investors in horrible and made them lost trust in the Crypto industry. Yes! We permanent lost our truth in centralized exchange a whole. Because those top executives are using client funds to purchase homes and give themselves massive loans on the exchange, and this is exactly what is going on with FTX. We don't know who is who and what else is going to happen, to which firms. But one thing that is sure is that they eat the client funds and there is highly unlikely that they will ever returned to them.

Well, the bankruptcy proceedings are underway and there might be a way for them to make repayment, but this is not certain.

Thank you for your attention πŸ’žπŸ’–

Image source: pixabay

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