FTX Latest – Crypto prices fall as filings show top 50 creditors owe $3.1 billion, 2 of them more than $200 million each

FTX at the latest

A list of the FTX Group’s top 50 creditors has been filed with the bankruptcy court, totaling $3.1 billion.

The two largest creditors are owed $226 million and £203 million. None of the names of the creditors are included in the list, in line with a request from FTX to protect the identities of its customers for reasons of corporate competitiveness.

The 50th largest creditor is owed $21.3 million.

Today’s filing uncovers the first concrete details regarding the form of FTX company liabilities, which are said to total around $10 billion.

Crypto prices are fluctuating after the latest FTX news

Bitcoin and other crypto prices have weakened since the news broke, with total crypto market cap down 1.93% to $821 billion.

Bitcoin is down 1.2% over the past 24 hours to trade at $16.497, Ethereum is down 3% to $1,166 and Dogecoin is down 6% to $0.079.

However, FTX’s poor record means that new CEO John Ray cannot be absolutely sure the top 50 list is accurate.

Also, the delay in compiling the list required for Chapter 11 bankruptcy proceedings is due to the poor state of FTX company records.

The notice filed with the court states; “… the top 50 list is based on debtor creditor information currently available, including customer information that has been viewed but is currently not otherwise accessible. Debtors’ investigations into the amounts listed, including payments that may have been made but are not yet reflected in Debtors’ books and records, continue. Debtors are also working to gain full access to customer data.”

Ray characterized governance at FTX as one “Complete failure of corporate control” and the worst thing he’d ever seen in his career, including cleaning up the mess that followed Enron’s infamous 2007 collapse.

The top 10 FTX creditors are each owed over $100 million

The consolidated creditor list shows the largest unsecured claims but may include secured creditors if the collateral is now insufficient, causing the creditor to be included in the unsecured claims list.

The top 10 lenders alone are each owed over $100 million and are likely to include hedge funds and other financial companies traded on the exchange, as well as crypto companies such as lenders.

FTX could have as many as a million creditors, and disputes over debt ranking will determine which will be paid first.

It has become a point of contention in other crypto busts such as: Travel Digitall whether or not a financial institution with an account with a crypto exchange would have senior debt than other unsecured creditors such as retail customers.

Crypto exchanges are constructed in a significantly different way than the division of labor that exists in traditional finance. Firms like FTX are part bank, part broker-dealer, and part exchange. This means they act as custodians, holding large amounts of capital on behalf of clients.

The top 50 list can be viewed here:

https://cases.ra.kroll.com/FTX/Home-DownloadPDF?id1=MjMxNDUwMA==&id2=-1

Additional court records can be viewed here:

https://cases.ra.kroll.com/FTX/Home-DocketInfo

Ellison, Wang, and Singh are all fired, and CEO Ray is paid $1,300 an hour

This has come to light in other court documents Caroline EllisonGary Wang and Nishad Singh were fired.

Also, the total number of FTX employees at the time of the bankruptcy filing was 330 people in 29 countries, in addition to contractors. Of the direct employees, 140 work in the USA.

The documents state that the “Debtors continue to review staffing issues and, due to the nature of the Debtors’ businesses, anticipate that a large number of employees will need to continue working for the Debtors for the foreseeable future.”

CEO John Ray is paid $1,300 an hour and a $200,000 advance for his services.

The court’s first day of session will be Tuesday, November 22 at 11:00 am ET with Judge John T. Dorsey presiding.

Vitalik Buterin: “Everything is automatically suspicious if it’s centralized”

In other news, Ethereum co-founder Vitalik Buterin has described the FTX implosion as a “huge tragedy.”

But he added: “Nevertheless, many in the Ethereum community also see the situation as a confirmation of what they believed in all along: centralized everything is automatically suspect.”

For Buterin, the affair is proof that it is right to rely on “open, transparent code about individuals.” He noted that DeFi protocols have worked “flawlessly.”

Buterin tweeted about Sam Bankman-Fried:

Bitcoin’s relative strength also bodes well for the future recovery, according to one trader:

Elsewhere, centralized exchanges continue to try to communicate their trustworthiness. To that end, Coinbase advertised in the Wall Street Journal:

Over the coming week, the focus of attention in the FTX contagion story could be Digital Currency Group (DCG), specifically its two owned companies Genesis and Grayscale Investments, the latter being the issuer of the Grayscale Bitcoin Trust (GBTC). .

Unconfirmed rumors (see tweet below) are circulating that a previously unreleased promissory note shows DCG owes Genesis $1.1 billion. Last week, Genesis halted withdrawals from its high-yield product, Genesis Earn.

DCG is the largest crypto conglomerate, owning news site Coindesk and investing in as many as 200 companies, according to some estimates. Research site Messari puts DCG’s disclosed VC investments at 114. DCG is a major investor in Messari.

Now a respected broker in France coin house announced that it has an exposure to Genesis and is therefore halting withdrawals from its flagship savings account.

Cryptonews ran one exclusive interview with CEO Nicolas Louvet a week or so ago.

In that interview, Louvet spoke about the need for better regulation in the industry and suggested that things could be cleaned up if more professionals from the VC world and independent auditors and rating agencies were involved.

It looks like Coinhouse failed its own due diligence, although, to be fair, it shouldn’t have known that FTX would fail and bring down Genesis – or at least its Earn product.

The crypto winter will last longer, but there are bright spots

IFTX has certainly set Krypta back and is likely to prolong the winter. Nevertheless, there are also profitable opportunities for experienced traders and investors at this point.

So if you’re looking to add some alpha to your portfolio, the presale sector is a good place to start and we have two interesting suggestions for your watch list – Dash 2 trading (D2T) and RobotEra (TORAH).

Dash 2 Trade is the perfect antidote for a post-FTX world – its trading intelligence tools, signals and metrics will help traders and investors spot and avoid the problems.

In a vote of confidence in the project LBank and last BitMart have both signed contracts to list the token after the end of the pre-sale. You can now pre-purchase D2T for $0.0513.

The second project is RobotErawhich could be the next hot Metaverse gaming project.

The gaming platform is similar to The Sandbox, but better – you build planets with robots. Its TARO token is now available for $0.020. It has already raised $100,000 just days after the pre-sale.

Buy Dash 2 Trade in advance
Buy RobotEra in advance

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