Bankrupt cryptocurrency exchange FTX, founded by disgraced crypto CEO and Democrat super donor Sam Bankman-Fried, could owe money to more than one million people and organizations, according to documents filed in bankruptcy court this week.
FTX could owe more than one million creditors, according to documents obtained by the New York Times, which reveal the scope of the crisis that has plunged the crypto industry into complete disarray.
The crypto exchange, which filed for bankruptcy on Friday, said it has been in touch with “dozens” of federal, state, and international regulators, as well as law enforcement officials, including the Securities and Exchange Commission, the Justice Department, and the Commodity Futures Trading Commission.
“In a stunning corporate drama, a company once regarded as among the safest and most reliable corners of the freewheeling crypto industry collapsed practically overnight,” the New York Times reported.
FTX CEO and Democrat megadonor Sam Bankman-Fried reportedly told investors that the company was facing a major shortfall of up to $8 billion from withdrawal requests and needs emergency funding.
On Friday, once papers were filed in federal bankruptcy court in Delaware, Bankman-Fried announced his resignation. He also said that his firm Alameda Research — which allegedly traded billions of dollars from FTX customers’ accounts and leveraged the crypto exchange’s native token as collateral — is shutting down.
Bankman-Fried has since put his 12,000-square feet penthouse in the Bahamas up for sale for nearly $40 million ($39,950,000).
On Thursday, in a rambling Twitter thread attempting to explain the state of FTX, Bankman-Fried wrote, “I’m sorry. That’s the biggest thing. I fucked up, and should have done better.”
You can follow Alana Mastrangelo on Facebook and Twitter at @ARmastrangelo, and on Instagram.
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