New court filings have confirmed that FTX owes money to Apple, Binance, Coinbase, Netflix, other firms in the tech industry, hospitals, and even charity organizations. The owed companies were published on the extensive FTX creditor list that went viral today.
Lawyers for the bankrupt crypto exchange published an extensive list of creditors, including media companies, airlines, universities, charities, and others. The lawyers for the company compiled the list as part of the bankruptcy proceedings in a U.S. court in Delaware.
The list of creditors is reported to be 116 pages long and includes firms like The Wall Street Journal, Apple, and Binance and 9.7 million redacted customer names, according to Coindesk. This portrays the extended reach of the now-defunct cryptocurrency exchange and the effect of its meltdown.
The list conceals the amount owed to each creditor, but the company previously revealed that it owed approximately $3.1 billion to its top 50 creditors according to Coindesk. Moreover, the report notes the two largest claims were for $226 million and $203 million.
Judge John Dorsey, who was overseeing the proceedings, allowed the names of individual creditors remain sealed for three months at a hearing in early January. However, he requested a list of institutions that invested in the company to be filed by FTX lawyers.
This was when it came to the limelight that among these creditors was Stanford University, where Sam Brandman-Fried’s parents work as professors and its credit union, which was also listed in the document.
Read Also; 3 self-custody wallets to safeguard your crypto assets following the FTX crash
The aftermath of FTX bankruptcy
On the 11th of November 2022, then-CEO Sam Bankman-Fried admitted that the cryptocurrency exchange, which was famous for being secure and the second-largest in the world by trading volume, didn’t have sufficient assets in reserve for its customers’ demands.
Sam Bankman-Fried has been charged with fraud in the US but has pleaded not guilty to the charges levied against him by U.S. regulators in New York. It is indisputable that the collapse of FTX has wrecked the crypto markets and the industry’s reputation. This has prompted regulators to seek stronger ways to protect investors.
Business owners knowing that Investors’ funds are entrusted to a business with the purpose of money making and growth in such business is a requisite to a prosperous business. However, a business should have two times more current assets to cover its short-term liabilities to avoid bankruptcy.
Read More; FTX begins payments for staff and vendors after weeks of doubt
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