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According to a 115-page list of FTX’s potential creditors, major firms marked their names in it. The big names of firms are Google, Apple, Meta, TikTok, Twitter, Verizon, Netflix, and a slew of companies including BlackRock.
On January 25th, 2023, FTX’s lawyers presented the long-anticipated inventory of FTX’s debt in the United States Bankruptcy Court in Delaware. That only has the names of institutions and companies, not any individual creditors. Earlier this month, the Federal Judge who is overseeing the case John Dorsey, found that the names of individuals to whom FTX owes money would be sealed for three months.
However, yesterday the FTX lawyers submitted a filing in court that warned that the list is not necessarily complete. Creditors can be added and removed as FTX and its subsidiaries continuously review their “books and records.”
The high-profile creditor list is the latest update in the legal sprawl that has enveloped FTX and its founder Sam Bankman-Fried, as his firm that once valued at $32 Billion dramatically collapsed in November 2022. The FTX founder is currently awaiting trial for fraud in October at his parents’ home in Palo Alto. Earlier this month, he pleaded not guilty.
Besides all these giant firms, now-collapsed crypto exchanges may also have money to popular airlines including American, Spirit, and Southwest, and some creditors of media such as The New York Times, VICE, and FOX. The list also has some universities’ names that include Stanford, Florida International, and Northeastern.
It must be noted that the FTX lawyers did not include the amount that is owned by any of these creditors. The debt of FTX to each firm or institution can potentially be as paltry as unpaid subscription fees.
But according to previous court filings, FTX owes $3.1 Billion to its 50 biggest unsecured creditors, while two customers owed over $200 Million individually.
On January 6th, 2023, FTX and its affiliated debtors announced their agreement on terms for mutual cooperation in the chapter 11 cases of the FTX Debtors in Delaware and the provisional liquidation of FTX DM in The Bahamas.
Later on January 17th, 2023, they announced that their top-level management and advisors met with the members of and advisors to the Official Committee of Unsecured Creditors (the “UCC”) in their chapter 11 cases. This was part of their ongoing efforts to share preliminary information obtained since the commencement of the chapter 11 cases.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
