The collapse of the FTX crypto exchange, which was valued at $32 billion at its peak, could end up affecting far more creditors than earlier estimated, according to a recent filing by the company.
In its Chapter 11 bankruptcy filing last week, FTX indicated that it had more than 100,000 creditors with claims in the case. In its updated filing on Tuesday, the company cited new estimates. “As set forth in the Debtors’ petitions, there are over 100,000 creditors in these Chapter 11 cases. In fact, there could be more than 1 million creditors in these Chapter 11 cases,” the updated court filing says.
Usually in such cases, debtors are required to provide a list with names and addresses of their top 20 unsecured creditors. But given the large scale of FTX debts, the firm intends to provide a list of the top 50 creditors by Friday….