The top 50 creditors of the bankrupt cryptocurrency exchange FTX are owed roughly $3.1 billion.
According to court filings, the different divisions of Sam Bankman-failing Fried's group of firms had $1.2 billion in cash as of Nov. 20, a significant amount less than the $3.1 billion it owes its top 50 creditors.
According to the paperwork submitted on Monday by FTX's prospective financial advisor, Alvarez & Marsal North America, about $751 million of that total is held in debtor firms, while the remaining $488 million is in non-debtor entities. Unrestricted cash amounts to $514 million, custodial cash amounts to $260 million, and restricted cash amounts to $465 million. Restricted cash is only allowed to be used for certain things, such as loan repayments, and cannot be used for ordinary business reasons.
Since a significant portion of sibling business Alameda Research's assets were the crypto exchange's tokens, the crypto exchange FTX has fallen from favor. On November 11, the exchange chaotically filed for Chapter 11 bankruptcy in U.S. courts, misrepresenting that several firms under the FTX umbrella were also seeking bankruptcy protection. According to another court document, it may have more than a million creditors and owes the 50 biggest ones a combined $3.1 billion.
Alameda Research has the greatest cash reserve of all the corporations, at $393 million, while FTX Japan has the largest cash reserve of all the companies under the FTX silo, at $171 million. According to reports, the Japanese cryptocurrency exchange is getting ready to resume withdrawals before the end of the year.
Another document revealed the intricate corporate structure of SBF's roughly 100 companies, the majority of which he owned in majority stakes. According to the document, the parent company of FTX was in Antigua, not the Bahamas, which was listed as the location of the crypto exchange's headquarters.
The disgraced exchange has also drawn criticism from its new CEO John J. Ray III, who oversaw financial scandals like Enron in the past. Ray criticized senior managers for their lack of experience and poor record-keeping, as well as for using company money to buy property in the Bahamas.