Sam Bankman-Fried owes his 50 largest creditors at least $ 3.1 billion



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Sam Bankman-Fried owes his 50 largest creditors at least $ 3.1 billion

Sam Bankman-Fried owes his top 50 creditors at least $ 3.1 billion, according to the Washington Post. Before the scandal, Bankman-Fried was considered an industry genius. Companies that have invested in FTX include BlackRock, Sequoia Capital, Tiger Global and the Ontario Teachers' Pension Plan.

The highest amount to be repaid would be $ 226 million. There are also 10 creditors who have claims of at least $ 100 million. The most solid cryptocurrency, Bitcoin, is back above 16 thousand dollars, while Ethereum is just above a thousand.

Just a year ago, the first was worth over 55 thousand dollars, the second more than 4 thousand. The value of the sector collapsed to 850 billion, yielding almost 70%. The collapse of Ftx is likely to increase the pressure from investors and regulators on cryptocurrency platforms.

An initial review of Ftx's accounts revealed that significant funds have been transferred to Alameda Research, another Bankman-Fried firm. Among these millions of dollars went, according to rumors, to the purchase of sumptuous properties in the Bahamas.

In one of these, the former CEO lived with 10 other people between long nights, pills and cross romantic relationships. Additionally, former FTX CEO Sam Bankman-Fried has, along with his parents and other managers of the cryptocurrency trading platform, bought real estate in the Bahamas for $ 121 million over the past two years, as reported by the New York Post, noting how the indiscretion feeds doubts about the disappeared funds.

FTX crushs: what happened and what could happen

The US Department of Justice and two federal regulators have launched investigations to see if the cryptocurrency exchange has evaded the rules on safeguarding consumer deposits and dealing with trading affiliates.

After the scandal, chief executive Sam Bankman-Fried resigned. FTX filed for bankruptcy on November 11, after Binance decided to renounce the acquisition of the exchange. The decision came after the release of an article on the specialized CoinDesk website, in which it was revealed that Alameda Research, a subsidiary of FTX, held a significant part of its reserves in FTT, or the tokens created by FTX.

John Ray, Ftx's new chief executive, said: "I have never in my career seen such a complete failure of corporate oversight and such a glaring lack of reliable financial information as the one that has occurred. This situation is unprecedented.

From compromised systems integrity and imperfect overseas regulatory oversight to concentration of control in the hands of a very small group of inexperienced, crude and potentially corrupt individuals. "