FTX bankruptcy filing details 'severe liquidity crisis'
By Iain Gilbert
Date: Tuesday 15 Nov 2022
(Sharecast News) - Embattled cryptocurrency exchange FTX has described a "severe liquidity crisis" in its bankruptcy filing, stating it could have as many as 1.0m creditors.
FTX filed for bankruptcy protection on Friday after traders withdrew $6.0bn from the platform in just three days and competitor Binance scrapped a potential rescue deal.
The filing stated that while there were more than 100,000 creditors involved in the bankruptcy, the final figure could actually be in excess of 1.0m, with FTX requesting that group companies come up with a consolidated list of major creditors.
"FTX faced a severe liquidity crisis that necessitated the filing of these cases on an emergency basis last Friday," the filing said.
FTX has engaged Alvarez & Marsal as its financial advisor and said it had already been in contact with the US Attorney's Office, the Securities and Exchange Commission, the Commodity Futures Trading Commission, and several other federal, state, and international regulatory agencies over the past three days.
Reporting by Iain Gilbert at Sharecast.com
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