Written by 9:47 am Cryptocurrency

Bankrupt cryptocurrency exchange FTX owes about $3.1 billion to top 50 creditors

Cryptocurrency exchange FTX that filed for the US bankruptcy court protection said that it owes nearly $3.1 billion to its 50 biggest creditors, reported news agency Reuters on 20 November.

Earlier on 19 November, the bankrupt cryptocurrency exchange in a court filing had said that it owes about $1.45 billion to its top ten creditors, though it did not named them.

FTX and its affiliates filed for bankruptcy on 11 November in US’s Delaware. It is considered to be one of the highest-profile crypto blowups that has left an estimated 1 million customers and other investors facing total losses in the billions of dollars.

ALSO READ: Investor studied crypto for years, then missed FTX’s red flags

On Saturday, FTX said that it had launched a strategic review of its global assets and is preparing for the sale or reorganization of some businesses.

With the FTX case gone wrong, platforms like Binance to Crypto.com are having a tough time to reassure markets about their stability.

Meanwhile, another report by Bloomberg said the FTX Europe unsuccessfully sought a trading licence in Switzerland.

Based in Pfäffikon near Zurich, FTX Europe had applied to Swiss banking regulator Finma for a license for a so-called “organized trading system” that was declined recently.

With Finma declining to comment, and impossible to reach FTX Europe, as it now shut down, reasons for application failed remains unknown.

On Friday, billionaire Warren Buffett-run Berkshire Hathaway warned investors it has no affiliation with a purported cryptocurrency brokerage website using the Berkshire Hathaway name. Buffett has run Berkshire Hathaway Inc since 1965.

Buffett, who has long been skeptical of cryptocurrency, called bitcoin ‘rat poison squared’ in 2018. Buffett’s company said it learned about the website that describes its operator as a Texas-based broker founded in 2020 to give investors “an opportunity to achieve a completely passive income from investment in cryptocurrency mining.”

The name of the website has been kept as berkshirehathawaytx.com, to which Buffett’s company said in a statement, as quoted by Reuters on Friday, “The entity who has this web address has no affiliation with Berkshire Hathaway Inc or its Chairman and CEO, Warren E. Buffet.”

With agency inputs. 

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