Cryptocurrency exchange FTX owes creditors more than $3 billion

On Saturday, court filings revealed that cryptocurrency exchange FTX owed its top 50 creditors at least $3 billion. Earlier this month, the cryptocurrency giant filed for bankruptcy in the US, seeking court protection.

As reported by Fox Business, on Saturday, John Ray III, newly appointed CEO of bankrupt crypto exchange FTX, whose founder was Sam Bankman-Fried, also announced a strategic review of its global assets.

Before FTX  faced a liquidity crunch, it was considered the world's third-largest exchange valued at nearly $32 billion. On November 11, FTX, trading firm Alameda Research and additional affiliated companies led by Sam Bankman-Fried announced that they were filing for bankruptcy. 

According to estimates, more than one million people may have lost billions of dollars.

John Ray III is known to have experience working as an attorney. He presided over the bankruptcy of energy firm Enron, which agreed to pay $23 million. John Ray III noted this week that he didn’t trust balance sheets of the cryptocurrency exchange.

According to court filings on November 17, Ray said he had never seen such a failure of corporate control and lack of reliable financial information as at FTX. 

He noted that the crypto exchange was a toxically troubled company with compromised systems integrity, improper regulatory oversight of overseas divisions, and concentration of control in the hands of unqualified individuals.