Many people are wondering how much debt FTX is in after filing for bankruptcy in the midst of one of the most turbulent episodes in cryptocurrency history.
Despite not knowing for certain the exact amount of debt that FTX is in, many speculate it to be massive.
One of the first indications was Binance CEO withdrawing from the FTX acquisition deal, after coming in contact with the company’s numbers.
Following that, the chaotic turn of events brought down not only the exchange but also its partner company “Alameda Research”.
New FTX CEO Findings
The newly appointed CEO, John Ray III, called the state of the company “an unprecedented and complete failure of corporate controls”.
That is definitely a big statement. Specially Considering that Ray is experienced in dealing with bankruptcy procedures. He has dealt with some of the biggest bankruptcies ever.
According to a court filing, FTX owes $1.45 billion to its top ten creditors and $3.1 billion to all top 50 creditors combined.
Sam Bankman-Fried Regrets The Bankruptcy Filing
On November 11, FTX and its affiliates filed for bankruptcy in Delaware, in one of the most chaotic crypto crashes in its history.
The cryptocurrency exchange said on Saturday that it had begun a strategic evaluation of its worldwide assets and is ready to sell or reorganize some operations.
The act of filing for bankruptcy might have seemed like an unavoidable measure to prevent further financial damage — however, the then-CEO Sam Bankman-Fried recently stated that he deeply regrets this decision.
In an in-depth interview with Vox, SBF claimed that filing for chapter 11 was his “biggest single f**kup.”
“I f***d-up big multiple times,” SBF claimed. “You know what was maybe my biggest single f***up?”
“The one thing *everyone* told me to do: chapter 11.”
According to the former billionaire, if he hadn’t opted for the bankruptcy route, “everything would be 70% fixed right now,”, he also claimed that FTX would be able to reopen withdrawals in the next month.
“But instead I filed, and the people in charge of it are trying to burn it all to the ground out of shame.”