By Richard Hines
According to a court document that detailed the events of FTX’s collapse after the company filed for bankruptcy, it is said to have likely over a million creditors. FTX has been directed to compile a list of all of its subsidiaries’ creditors.
FTX To List Out Its Creditors
The report submitted to the Federal Court detailed what happened in the days leading up to the FTX crash and market turmoil before the company declared bankruptcy.
FTX’s insolvency supervisor, John J Ray III, is supporting legal authorities with this investigation.
For all of its subsidiaries, FTX filed more than 90 dockets during the filing procedure. For the Alameda Research Institute, the source of the crisis, the Quant Trading Shop, which served as the FTT tokens’ storage facility, and Clifton Bay and a few of its other businesses.
This docket’s feature wasn’t submitted to specifically name and address each subsidiary; rather, it was filed as a joint case and is not to be considered separately.
Sam Bankman Fried, CEO of FTX, requested if he could take the subsidiaries as a whole and make one list that accounted for the top 50 creditors in all subsidiaries rather than establishing a separate list of the top creditors for each subsidiary.
Staff at FTX have furthermore been asked to email its creditors the notification of bankruptcy rather than deliver it to their residences. Adding that most communication with creditors took place through email, and the server already had their contact information.
The FTX Hack Exploit
This document also discusses the alleged breach of the FTX exchange that occurred on Friday. More than $100 million was stolen from this exchange as a result of this breach.
This hack was discovered as investors raced to remove their funds from the exchange during the height of the crisis, and an unusually high number of withdrawals to one address were made during that time. A total of $600 million had already been transferred to that exchange when this was discovered.
Following this incident, FTX contacted the US regulatory body and the Securities and Exchange Commission about the intrusion. It also advised users to disconnect from any website to avoid the spread of malware and the loss of funds.
However, it is unclear if this was a true hack or an inside effort to securely siphon funds while filing for bankruptcy.